The fundamental qualitative characteristics that financial information must possess to be useful to theprimary users of general purpose financial reports—identified in the Conceptual Framework are‘relevance’ and ‘faithful representation’.Required:a) Provide one example where information is relevant but not faithfully represented. (maximum 100 words)b) Provide one example where information is not relevant but is faithfully represented.(maximum 100 words)c) Provide one example where information is relevant and faithfully represented.
The fundamental qualitative characteristics that financial information must possess to be useful to theprimary users of general purpose financial reports—identified in the Conceptual Framework are‘relevance’ and ‘faithful representation’.Required:a) Provide one example where information is relevant but not faithfully represented. (maximum 100 words)b) Provide one example where information is not relevant but is faithfully represented.(maximum 100 words)c) Provide one example where information is relevant and faithfully represented.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The fundamental qualitative characteristics that financial information must possess to be useful to the
primary users of general purpose financial reports—identified in the Conceptual Framework are
‘relevance’ and ‘faithful representation’.
Required:
a) Provide one example where information is relevant but not faithfully represented. (maximum 100 words)
b) Provide one example where information is not relevant but is faithfully represented.
(maximum 100 words)
c) Provide one example where information is relevant and faithfully represented.
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