Qualitative Characteristics

QUALITIES AND General Features of Financial Statements

GENERAL FEATURES
PFRS for SMEs Full PFRS PFRS for SMEs Full PFRS

FUNDAMENTAL ENHANCING
Relevance Ingredients
Fair Presentation
Predictive Faithful
Value Representation Compliance with IFRS for SMEs
Verifiability
Materiality
Confirmatory Going Concern basis
Ingredients implies
Value consensus
Reliability
Neutrality Accrual basis of Accounting

Substance Economic substance shall Free from

Error
Materiality and Aggregation
Over Form prevail over legal substance
in case of conflict
present separately each present separately items of
material class of similar dissimilar nature or function if
items material
Completeness Notes to FS shall accompany
the financial statements
Offsetting Frequency of
Reporting
Prudence Synonymous with Conservatism
Assets and liabilities,
at least annually
and income and
expenses, when
Comparability Intracomparability (within an entity) material, shall not be
offset against each Comparable Information
Intercomparability (across entities) other.
disclose comparative
information in respect of the
Understandability Consistency of Presentation previous period for all
amounts reported in the
Timeliness current period’s FS
Uniform application of accounting
Balance between Benefit and Cost methods and practices from period
to period