Answer
a. Comparability: The application of analogous accounting principles across an industry enhances comparability.
b. Confirmatory value. This quality facilitates users to confirm previously held expectations.
c. Comparability. This quality allows period-to-period contrasts in an entity.
d. Neutrality ensures that the economic implications of a particular rule would not affect the information to be incorporated in financial reports.
e. Materiality. Individuals ought to reach an agreement on whether a measurement is material or not.
f. Relevance. Predictive value is a fundamental constituent of the attribute of relevance.
g. The qualitative characteristics that cut across the two fundamental values include:
i. Comparability ii. Understandability iii. Verifiability, and iv. Timeliness.
h. Materiality. The item that has no substantive effect on the income is immaterial.
i. Faithful representation. Neutrality adds to the essence of faithful representation.
j. Decision-making fundamentally relies on faithful representation and relevance.
k. Timeliness. The interim reports offer opportune information to users who need to make sound economic resolutions around the interim period.
Work Step by Step
N/A
