Pls do not handwritten for easy reading === === Question:- 1a) The Singapore "Conceptual Framework for Financial...

60.1K

Verified Solution

Question

Accounting

Pls do not handwritten for easy reading === ===
Question:-
1a) The Singapore "Conceptual Framework for Financial Reporting" onqualitative characteristics deals with the attributes that makefinancial information useful.
Explain the following 2 qualitative characteristics: (i) Relevanceand (ii) Verifiability
1b)Under FRS 115 Revenue from contracts with customers an entityrecognizes revenue over time when it transfers control of a good orservice over time and, therefore, satisfies a performanceobligation over time. For measuring progress towards completesatisfaction of a performance obligation over time, the entity canchoose to use the output or input method. Explain and illustratewith suitable examples of what these methods are.

Answer & Explanation Solved by verified expert

3.5 Ratings (480 Votes)

The Framework Scope The Framework addresses the objective of general purpose financial reporting qualitative characteristics of useful financial information financial statements and the reporting entity the elements of financial statements recognition and derecognition measurement presentation and disclosure concepts of capital and capital maintenance Chapter 1 The Objective of general purpose financial reporting The primary users of general purpose financial reporting are present and potential investors lenders and other creditors who use that information to make decisions about buying selling or holding equity or debt instruments providing or settling loans or other forms of credit or exercising rights to vote on or otherwise influence managements actions that affect the use of the entitys economic resources Information about a reporting entitys economic resources claims and changes in resources and claims Economic resources and claims Information about the nature and amounts of a reporting entitys economic resources and claims assists users to assess that entitys financial strengths and weaknesses to assess liquidity and solvency and its need and ability to obtain financing Information about the claims and payment requirements assists users to predict how future cash flows will be distributed among those with a claim on the reporting entity Changes in economic resources and claims Changes in a reporting entitys economic resources and claims result from that entitys performance and from other events or transactions such as issuing debt or equity instruments Users need to be able to distinguish between both of these changes Financial performance reflected by accrual accounting Information about a reporting entitys financial performance during a period representing changes in economic resources and claims other than those obtained directly from investors and creditors is useful in assessing the entitys past See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member