The Qualitative Characteristics of Relevance and Reliability - Essay Example

Only on StudentShare

Extract of sample
The Qualitative Characteristics of Relevance and Reliability

IASB has set standards for financial reporting which ensure that the reporting is done according to the set principles by all the companies. This helps the users of financial statements in making crucial economic decisions as there is no ambiguity due to different accounting styles. The standards ensure that a company provides all the relevant information that influences the financial needs of the users. There are specific areas that are not allowed to be left untouched. There is a possibility that some users require non-financial information about a company which is not available in its financial statements. There are a variety of users and their requirements are also different. Financial statements may be used by the employees of a company to know about their chances of obtaining a bonus. A cash flow statement of the year describes the liquidity of the company. Comparisons of statements of affairs of a year with those of preceding years help in evaluating the performance of the company. ...Show more

Summary

Relevance and Reliability Your Name Due Date List of Contents Introduction………………………………………………………3 Theory…………………………………………………………….4 Practice……………………………………………………………8 The Application of Theory to Practice…………………………….11 Recommendations………………………………………………14 References……………………………………………………….17 Introduction Financial reporting is a legal requirement of a company…
Author : celestinoruecke
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The Qualitative Characteristics of Relevance and Reliability"
with a personal 20% discount.
Grab the best paper

Related Essays

Relevance and Reliability
The author states that financial reporting that is done according to the standards defined by the IASB ensures that a very helpful analysis is available to compare a company’s performance with its own history and with the other companies. This helps a myriad of users in making crucial economic decisions.
16 pages (4000 words) Essay
The qualitative characteristics of financial report preparation
This study aims to evaluate and present several qualitative characteristics that financial information must incorporate in order to meet the needs of users of financial statements. Materiality is one of the qualitative characteristics. Prudence is another qualitative characteristic. Relevance is an important qualitative characteristic. Reliability is a necessary qualitative characteristic.
7 pages (1750 words) Essay
Contribution of relevance and reliability on financial reporting.
Relevance and reliability are two qualitative characteristics of any information that distinguish more useful information from the inferior or less useful information. These two qualities are highly related to financial information reported and published by companies.
14 pages (3500 words) Essay
Finance Assessed Coursework
In order to achieve this purpose, it is imperative that these statements possess certain qualities which can ensure their usefulness for the various users of financial information (Epstein et al, 2010). In this paper, I have made an attempt to first briefly discuss what constitutes financial statements and what implications these statements possess for their users, and then analyze some of the essential characteristics of financial information in detail along with the problems that affect the qualitative characteristics of materiality, prudence, neutrality, relevance and reliability In addition to that, this paper also focuses on the various ways in which these qualities may come into confli
8 pages (2000 words) Essay
Qualitative Characteristics of Financial Information
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.
8 pages (2000 words) Essay
Economic Value Added (EVA) Statement
Economic value- added (EVA) is a residual income, introduced to improve the internal and external performance of the business. The task of managers is to capitalize on the wealth of shareholders, by well-organized distribution of resources. The information in the financial statement helps the managers and shareholders to evaluate the present as well as future performance of the firm.
3 pages (750 words) Research Paper
Financial Accounting. Relevance and Reliability.
Financial Accounting. Relevance and reliability are the two qualities that distinguish better or more useful information from inferior or less useful information. The main objective accounting policies and standards is to produce fair valued accounting information that is reliable and relevant to the purpose of the financial statements.
14 pages (3500 words) Dissertation
Global Finance Environment
The interconnectivity that comes with technology enables easy access to people and markets across borders. Globalisation in financial terms refers to “intensification and stretching of economic interrelations across the globe” (Steger, 2010, p. 49). Globalisation simply refers to opening up of trade avenues, development of advanced means of communication, internationalization of financial markets, and increased movement of persons, goods, capital, and data across the world (Scholte, 2005).
5 pages (1250 words) Essay
Judgement in Accounting
The purpose of this essay is to argue the fact that accounting is simply mathematics and a precise subject as compared to the belief that it involves judgment and other critical thinking tools. First of all, by definition, accounting is an important tool used in evaluating the operations of a business through the use of bookkeeping methods that related to financial records of business transactions and preparations of asset statements.
6 pages (1500 words) Essay
PERFORMANCE BUDGETING
Most performance budgets places emphasis on employees’ commitment to provide quality results to the satisfaction of the public. Performance based budgeting has great characteristics that has made it quite suitable in public sector budgeting for local governments.
1 pages (250 words) Coursework
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT