This essay discusses that qualitative characteristics influence the financial information’s effect. The users of the financial information rely on the qualitative characteristics of the financial statements for their decision making activities. The creditors use the financial statements as one of the tools for deciding whether to grant loans or credit terms to the credit applicant. Financial statement indicating the company generated a profit trend for the past two years will persuade the creditors to grant the loans or credit applications. The net profit portion of the financial statements indicates the company will be able to pay its maturing loan and credit obligations on time. On the other hand, the creditors will be discouraged to approve the credit or loan application of a company having a net loss financial picture. The net loss financial picture indicates a strong probability that the company may close shop in the next few years. The credit or loan applicant may not be able to comply with its duty to pay its loans or credits when the maturity dates crop up. In addition, the customers use the financial statements as one of the major tools for deciding whether to grant loans or credit terms to the credit applicant. The customers use the financial statements to determine if the company will stay long enough to supply their wants, needs, and caprices. A financial statement indicating a loss will persuade the client to start looking for other competitor suppliers. A net loss figure creates an impression on the minds of the customers that the company may not qualify as a going concern entity. A net profit ensures the customers that the company will provide the clients’ needs. Furthermore, the managers use the financial statements as one of the major tools for benchmarking their performance. The managers will have a passing performance grade if the financial statements indicate the company generated net profits during the past year or years of supplying the needs of its clients. On the other hand, the manager will receive a failing performance grade if the financial statements indicate the company generated a net loss for the past year or years of service. The managers need financial statements that obey with the qualitative characteristics standard. Also, the current and prospective investors use the financial statements as one of the major tools for deciding whether to grant loans or credit terms to the credit applicant. The current and prospective investors will be encouraged to invest their hard earned cash in the company, if the financial statements indicate the company generated profits for the past year or years of service. On the other hand, the current and prospective investors will be discouraged to invest in a company that generated a trend of net loss for the past year or years of operation. The current and prospective investors need financial statements that comply with the qualitative characteristics standard. Based on the above discussion, the entities must resolve the threshold quality of materialityiv. Materiality is not easy to define and can be misunderstood. The financial information is material if the omission or misstatement could influence the economic decisions of the financial sta
The researcher focuses on the qualitative characteristics of financial report preparation. The research centers on materiality, prudence, reliability, and relevance characteristics. The financial information must compulsorily abide by established qualitative characteristics…
Financial reporting conceptual framework is a coherent system of concepts which underlie the financial information reporting. The objective or purpose of financial reporting is to present the information pertaining to the reporting organization, which is useful to investors and other capital providers in making decisions.
It shows the financial state of a company and helps in giving a clear picture of its financial affairs. There are many external users of financial statements of a company but the company itself can also use financial statements to judge and compare its own performance against the performance of other like companies.
The qualitative interviews investigate the attitudes which these students express towards various aspects of life. The title of the research is “Qualitative Research Report”. It is an appropriate topic because it discusses the qualitative aspects of student life in the campus including attitude, emotions, likes and dislikes.
It will further elaborate how accounting for inventories will change according to these concepts/assumptions.
"The board of the International Accounting Standards Committee (IASC), a 13-member (all part-time) organization representing professional accounting groups (e.g., the AICPA) from member countries, promulgated IAS beginning in the mid-1970s.
orting the performance of a company, simplicity and understandability of the documents must be ensured (Wahlen, Bradshaw, Baginski, & Stickney, 2011).
In their reporting, the two firms have ensured that they give a complete set of information bearing in consideration the detail
This also increased the risk of development of mutually inconsistent standards that violated the main objective behind preparation of financial statements. To meet the need of robustness and consistency in the financial statements, the conceptual framework was
The themes are associated with Terms and Conditions. The themes examine trust, loyalty, privacy and security, and issue of Terms and Condition such as language and length. The main conclusion is that, loyalty and trust influences a person to accept
7 pages (1750 words)Essay
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