Chapter 4

Under the IASB Framework exposure draft, the qualitative characteristic

A disadvantage of a conceptual framework is:

The constraint on financial reporting identified under the IASB Framework are:

Which of these is not a criticism of conceptual framework projects?

Taxation rules are not a source of authority in accounting

Since its conceptual framework was first published in 1989 no new standards have been issued by the IASB that conflict with the Framework.

To be relevant accounting information should have which of these characteristics?

Both the IASB and the FASB frameworks consider the main objective of financial reporting is to communicate financial information to users. The information is to be selected on the basis of its usefulness in the economic decision-making process. This objective is seen to be achieved by reporting information that is:
i Useful in making economic decisions
ii Useful in assessing cash flow prospects
iii About enterprise resources, claims to those resources and changes in them

In the IASB Framework the qualitative characteristic of reliability is defined as the ability to influence the economic decisions of users by helping them to evaluate past, present or future events or confirm or correct their past evaluations.

The IASB's concept statement encompasses special and general-purpose financial reporting.

The group proposed by the IASB and the FASB as the primary user group for general purpose financial reporting is:

Which of these is not one of the benefits of a conceptual framework?

The decision theory process occurs in which of the following sequences?

A disadvantage of rules-based standards for users of the standards is:

One of the benefits of a conceptual framework, is that preparers and auditors would find it easier to understand the financial reporting requirements they face.