CHAPTER 3
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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
D
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 value,
confirmatory value or both.
5 Comparability,
verifiability,
timeliness and understandability
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