The Conceptual Framework states that an important implication of the qualitative characteristic of comparability is that:
A) it will allow different users of the information to come to a consensus.
B) it will be used to predict outcomes of past, present or future events.
C) users will be informed of the accounting policies used in the preparation of the financial reports, plus any changes to those policies and the effects of those changes.
D) if there is a choice of accounting methods one method should be chosen and then applied throughout the life of the entity.

Question

Quizplus · Accepted Answer

The qualitative characteristic of comparability requires that users are informed of the accounting policies used and any changes made to them as well as their effects. This ensures that users can make meaningful comparisons between different entities or periods. This, in turn, allows for better decision-making by users. Therefore, C is the best choice. A, B, and D are not directly related to the qualitative characteristic of comparability.

The Conceptual Framework States That an Important Implication of the Qualitative