Q.1.1 - Q.1.2 Financial statements should always reflect a true and fair view of a business's affairs. It is the duty of accountants to ensure that the financial statements provide a faithful representation of the financial position of the organisation. To achieve this, certain qualitative characteristics are to be applied. In your own words describe what you understand by both fundamental qualitative characteristics and enhancing qualitative characteristics. Hint: Name each of the characteristics under each of the headings - Fundamental qualitative characteristics and Enhancing qualitative characteristics and provide a short description of each characteristic. Provide one actual example from the business world that supports the necessity for the use of good quality accounting information or the lack thereof (Hint: The Enron scandal of 2003 in the USA where the financial information had been falsified to mislead investors). (1) Q.1.3 Why has South Africa changed from the Accounting Standards known as GAAP (Generally Accepted Accounting Standards) to the IFRS (International Financial Reporting Standards), beyond the obvious reason that business is frequently done across national boundaries in the modern era? (2) Good to go Search i (14)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter1: Accounting As A Tool For Managers
Section: Chapter Questions
Problem 1EA: Indicate whether each statement describes financial accounting or managerial accounting. The...
icon
Related questions
Question
Q.1.1
- Q.1.2
Financial statements should always reflect a true and fair view of a business's
affairs. It is the duty of accountants to ensure that the financial statements
provide a faithful representation of the financial position of the organisation.
To achieve this, certain qualitative characteristics are to be applied.
In your own words describe what you understand by both fundamental
qualitative characteristics and enhancing qualitative characteristics.
Hint: Name each of the characteristics under each of the headings - Fundamental
qualitative characteristics and Enhancing qualitative characteristics and provide a
short description of each characteristic.
Provide one actual example from the business world that supports the necessity
for the use of good quality accounting information or the lack thereof (Hint: The
Enron scandal of 2003 in the USA where the financial information had been
falsified to mislead investors).
(1)
Q.1.3
Why has South Africa changed from the Accounting Standards known as GAAP
(Generally Accepted Accounting Standards) to the IFRS (International Financial
Reporting Standards), beyond the obvious reason that business is frequently done
across national boundaries in the modern era?
(2)
Good to go
Search
i
(14)
Transcribed Image Text:Q.1.1 - Q.1.2 Financial statements should always reflect a true and fair view of a business's affairs. It is the duty of accountants to ensure that the financial statements provide a faithful representation of the financial position of the organisation. To achieve this, certain qualitative characteristics are to be applied. In your own words describe what you understand by both fundamental qualitative characteristics and enhancing qualitative characteristics. Hint: Name each of the characteristics under each of the headings - Fundamental qualitative characteristics and Enhancing qualitative characteristics and provide a short description of each characteristic. Provide one actual example from the business world that supports the necessity for the use of good quality accounting information or the lack thereof (Hint: The Enron scandal of 2003 in the USA where the financial information had been falsified to mislead investors). (1) Q.1.3 Why has South Africa changed from the Accounting Standards known as GAAP (Generally Accepted Accounting Standards) to the IFRS (International Financial Reporting Standards), beyond the obvious reason that business is frequently done across national boundaries in the modern era? (2) Good to go Search i (14)
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning