Compare And Contrast The Qualitative Characteristics Of Financial Reporting In The Current Exposure Draft For The New Conceptual Framework With The Existing Conceptual Framework. In Your Opinion Will These Changes Impact On The Occurrence Of

1NameUnit nameUnit codeDateIntroductionThe primary purpose of the conceptual framework is to provide counseling to the firm in developing new accounting standards . Choosing an self-colored accounting method , the amount and type of cultivation instauration dis shuttingd and the format in which education should be presented involves consider which alternative provide the most usable entropy for close fashioning purposes . FASB has developed qualitative characteristic of accounting information that distinguish better (more usable ) information from inferior (less useful . The qualitative characteristic suspensor to provide answer to the gesture , what characteristic of accounting information make it useful for windup making (fridson , 2002In the exposure selective service relevance and faithful psychical representa tion have been set forth as the deuce fundamental qualitative characteristics while verifiability , comparability , understandability and seasonableness are described as enhancing qualitative characteristics .

Cost and materiality are referred to as the major constraint in financial reportingIn comparing and secernate the existing framework and the exposure draft then separately characteristic will be considered at a time2RelevanceRelevance marrow that the accounting information is capable of making a end in decision . If certain information has no direction on a decision it is irrelevant to that decision . To be rel evant information must any confirm or chang! e the decision maker antepast . pertinent information helps the user make prediction about the net payoff of past , present and future event . It to a fault help user confirm or correct precedent expectation . In the existing frameworks both FASB and IASB have a confusable definition of relevance with...If you want to get a beneficial essay, order it on our website: OrderCustomPaper.com

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