BU387 Study Guide - Midterm Guide: Revenue Recognition, Financial Statement, Income Statement
Document Summary
Qualitative characteristics: fundamental qualitative characteristics, relevance accounting info must be capable of making a difference in a decision. Helps users confirm or correct their previous expectations; has feedback/confirmatory value: representational faithfulness reflects the underlying economic substance of an event/transaction. Info that is representationally faithful is complete, neutral and free from material error or bias. Completeness statements should include all necessary information to portray underlying events. Neutrality information cannot be selected to favour one set of stakeholders over another. Standard setters must also choose the best standards regardless of economic consequences. Freedom from material error/bias information must be reliable: enhancing qualitative characteristics, comparability information that has been measured and reported in a similar way is considered comparable (company to company or year-to-year) Presentation and disclosure: full disclosure, economic entity, control, periodicity, monetary unit, revenue recognition and, going concern realization, matching. Recognition deals with the act of including something o(cid:374) the e(cid:374)tity"s (cid:271)ala(cid:374)(cid:272)e sheet / i(cid:374)(cid:272)o(cid:373)e statement.
