Conceptual framework seminar questions

Question 1

IASB Conceptual Framework identifies two fundamental qualitative characteristics of

financial information. They are:

a. Relevance and Comparability

b. Relevance and Faithful Representation
c. Faithful representation and verifiability
d. Comparability and understandability

Question 2

IASB Conceptual Framework identifies four enhancing qualitative characteristics of financial

information. Which one of the following is not an enhancing qualitative characterises of
financial information?

a. Timeliness
b. Comparability
c. Faithful representation
d. Understandability

Question 3

Which accounting concept is referred to the underlying assumption in the IASB Conceptual
Framework?

a. Relevance
b. Comparability
c. Faithful representation
d. Going concern

Question 4

Define the five elements of financial statements

Question 5

The qualitative characteristics of relevance, faithful representation and comparability

identified in the IASB’s Conceptual Framework for Financial Reporting are some of the
attributes that make financial information useful to the various users of financial
statements.

Explain what is meant by relevance, faithful representation and comparability and how they
make financial information useful.