The Conceptual Framework for the Financial Reporting (let’s title it just “Framework”) is a basic document that sets objectives and the concepts for general purpose financial reporting. Transparency in Financial Statements (IAS/IFRS) By Gheorghe V. LEP ĂDATU 1, Mironela PÎRN ĂU2 Abstract: The provision of transparent and useful information on market partici- pants and their transaction is essential for an orderly and efficient market, and it is one of the most important preconditions for imposing market discipline. Introduction. Keywords: Fair value, Relevance, Representational faithfulness, Useful decision 1. The usefulness of financial information is enhanced if it is comparable, verifiable, timely and understandable. how the users of financial statements perceive the qualitative characteristics of fair value information (relevance and representational faithfulness). Qualitative characteristics of useful financial information; 3. 120 copies of structured questionnaire, … Has the IASB driven the extensive use of fair value? 1. financial reporting and the qualitative characteristics of useful financial information in 2010, and these were incorporated into the IASB’s Framework. The objective of general purpose financial reporting 2. 1,*, Ntiedo Bassey Ekpo. The dependence of users’ economic decision on financial statements is crucial and if the financial information is not accurate or is not true and fair then users may end up making wrong decisions. That means that the average, uniformed person might not understand a set of financial statements. The objective was to demonstrate how the qualitative characteristics, as defined by the IASB can be operationalised. Qualitative characteristics are the tributes that make the information provided in financial statements useful to users. Qualitative Characteristics of Useful Financial Information Flashcards Preview ... One of the benefits to Canadian public companies of using IFRS is that their financial statements will not be better understood by global users. Reliability is considered the most important qualitative characteristic of financial statement data, comparability is considered second in importance, and uniformity is third. The new framework builds on existing IASB and FASB frameworks. The usefulness of financial information is enhanced by its comparability, verifiability, timeliness and understandability. Are entities considering the appropriate qualitative characteristics when making changes to accounting policies? Pages. Mbobo Erasmus Mbobo . In this article, we review these assumptions and characteristics. It has several components that are outlined in figure 1 below. The Conceptual Framework for Financial Reporting 2010 provides important information on the concepts which underlie the preparation and presentation of financial statements for the benefit of all financial statement users. Objective of IFRS financial statement forms . Introduction If financial information is to be useful, it must be relevant and faithfully represent what it purports to represent. In May 2015 it published an exposure draft proposing six new chapters, and some changes to the chapters it had completed with the FASB. View all notes Qualitative characteristics are discussed in the Financial Accounting Standards Board’s Statement of Financial Accounting Concepts No. Keywords: qualitative characteristics; IFRS; relevance; faithful representation; comparability, understandability; transparency . Its predecessor, Framework for the preparation and presentation of the financial statements was issued back in 1989. 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