| What are the qualities of Faithful Representation? | - Completeness
- Neutrality
- Free from Error |
| What are the Fundamental Qualitative Characteristics of Financial Information? | - Relevance
- Faithful Presentation |
| What are the Enhancing Qualitative Characteristics of Financial Information? | - Comparability & Consistency
- Timeliness
- Verifiability
- Understandability |
| What are the Fundamental Accounting Concepts? | - Fair Presentation
- Going Concern
- Accruals - Consistency
- Materiality
- Substance over form
- Business Entity Concept |
| What is materiality ? | "A threshold or cut-off point for information whose omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements." |
| When is understandability enhanced? | When the information is:
- Classified
- Characterised
- Presented clearly and consistently |
| What are the qualities of Relevance? | Predictive value or Confirmatory value |
| What are the qualities of Faithful Representation? | - Completeness
- Neutrality
- Free from Error |
| What is Relevance? | Information that is capable of making a difference in the decisions made by users. |
| What is Faithful Representation? | Accounting information should be presented in accordance with best practice and that the commercial substance of transactions should be presented in the financial statements, rather than their strict legal form. |
| What is Substance Over Form? | The economic substance of a transaction should be reflected in the financial statements. Even when the legal form is in conflict. |
