Which of the following statements most accurately reflects the qualitative characteristics of financial information in the IASB Conceptual Framework?
A) These attributes or qualities determine whether an entity is considered to be a reporting entity.
B) These are attributes or qualities that financial information should possess if it is to be useful for such decision making.
C) These attributes or qualities satisfy the definition of elements in the financial reports.
D) All of the given answers are correct.

Question

Quizplus · Accepted Answer

The qualitative characteristics of financial information in the IASB Conceptual Framework are attributes or qualities that financial information should possess if it is to be useful for decision making. They include relevance, faithful representation, comparability, verifiability, timeliness, and understandability. None of the given options relate to the definition of reporting entity or elements in the financial report, making options A and C incorrect, and option D incorrect as it is not necessary to choose all the options. Therefore, the best answer is option B.

Which of the Following Statements Most Accurately Reflects the Qualitative