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

PART B: THE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION 

 

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In preparing financial statements, accountants follow certain fundamental assumptions. 

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The IASB's 

Conceptual Framework is the basis on which IFRSs are formulated. 

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The main assumption for financial statements is going concern. 

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The Conceptual Framework states that qualitative characteristics are the attributes that make the 

information provided in financial statements useful to users. 

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The two fundamental qualitative characteristics are relevance and faithful representation. 

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Enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability. 

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There are other accounting concepts which are useful in the preparation of financial statements. 

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Financial statements always treat the business as a separate entity.