The upcoming discussion will update you about the difference between financial reporting and financial statements. 1. Financial statements are a central feature of financial reporting. They are a principal means of communicating accounting information to those outside an enterprise. Although financial statements may also contain information from sources other than accounting records, accounting systems are generally organised on the basis [...]
The following points highlight the top eleven characteristics of accounting information. The characteristics are: 1. Relevance 2. Reliability 3. Understandability 4. Comparability 5. Consistency 6. Neutrality 7. Materiality 8. Timeliness 9. Verifiability 10. Conservatism 11. Substance over Form. Characteristic # 1. Relevance: Relevance is closely and directly related to the concept of useful information. Relevance implies that all those items of [...]
In this article we will discuss about the subject matter and uses of IASB’s conceptual framework. Subject-Matter of IASB'S Framework: IASB's conceptual framework deals with: (a) The objective of financial statements; (b) The qualitative characteristics that determine the usefulness of information in financial statements, (c) The definition, recognition and measurements of the elements from which financial statements are constructed; and [...]