I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider



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CHAPTER ROUNDUP 

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CHAPTER 3  

//

  THE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION 



 

41 

 

1 

The assumption that a business will continue in operation for the foreseeable future, without going into 

 

liquidation or materially scaling down its operations. 



2 

Verifiability helps assure users that information faithfully represents the economic phenomena it 

purports to represent. It means that different knowledgeable and independent observers could reach 

consensus that a particular depiction is a faithful representation (Conceptual Framework for Financial 

Reporting 2018). 

3 

Fair presentation, as it shows the likely recoverability of receivables 



4 

Relevant information is capable of making a difference in the decisions made by users, by having   



predictive valueconfirmatory value or both. 

5 Comparability, 

verifiability, 

timeliness and understandability 

 

 



 

 

 



Now try ... 

 

Attempt the questions below from the Practice Question Bank 



 

Qs 8 – 10  

 

 

 



 

 

 



 

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