Importance of time period assumption The time period assumption enables business organizations to stop and see how successful they have been in achieving their objectives during a particular period of time. It answers the How aspect of research characteristics to which it is not possible to assign numerical figures.
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The scope is much narrower.
. Download Free PDF View PDF. Relevance The characteristic of relevance implies that the information should have predictive and. FINANCIAL ACCOUNTING AND REPORTING.
Basis of decision making. The concept of materiality is relative in size and importance. The qualitative approach is effective since the statement of the problem refers to qualitative infinite aspects ie unquantifiable variable.
Management accounting itself is pretty vast. FINANCIAL AND MANAGEMENT ACCOUNTING. The two fundamental qualitative characteristics of financial reports are relevance and faithful representation.
Some financial information might be material to one company but might be immaterial to another. Normally an accounting period consists of a quarter six months or a year depending on the needs of business entity and its stakeholders. Scope Cost Accounting vs Management Accounting.
The four enhancing qualitative characteristics are comparability verifiability timeliness and understandability. In other words all important financial information that would sway the opinion of a financial statement user should be included in the financial statements. 22 PRINCIPLES AND PRACTICE OF ACCOUNTING.
Cost accounting is one of the many sub-sets of management accounting. The qualitative characteristics apply equally to financial information in general purpose financial reports as well as to financial information provided in other ways. The Conceptual Framework for Financial Reporting defines the fundamental qualitative characteristics of financial information to be.
The scope is much broader. Including International Accounting Standards IAStm and Interpretations as of 1 January 2007. The Framework also describes and qualitative characteristics.
21 23 Financial information is useful when it is relevant and represents faithfully what it. Download Free PDF View PDF.
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