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Chapter 2
Chapter 2
FRAMEWORK
It is a coherent system of interrelated objectives and fundamentals that
can lead to consistent standards that prescribe the nature, function and
limits of financial accounting and reporting.
Relevant
FUNDAMENTAL QUALITAIVE
CHARACTERISTIC OF A USEFUL
Faithfully representation
FINANCIAL INFORMATION
RELEVANCE
MATERIALITY
PREDICTIVE VALUE CONFIRMATORY VALUE
FAITHFUL REPRESENTATION
1. Completeness
2. Neutrality
3. Free from errors
4. Measurements uncertainly
ENHANCING QUALITATIVE
CHARACTERISTICS
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
UNDERLYING ASSUMPTION: GOING CONCERN