G identify characteristics of a coherent financial reporting framework and the barriers to creating such a framework; Flashcards Preview

L1 24 Financial Reporting Standards > G identify characteristics of a coherent financial reporting framework and the barriers to creating such a framework; > Flashcards

Flashcards in G identify characteristics of a coherent financial reporting framework and the barriers to creating such a framework; Deck (4)
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1
Q

“coherent” means

A

the framework fits together logically

2
Q

Coherence and barriers

A

Coherence: Transparency, comprehensiveness, consistency,

Barriers: valuation, standard setting, measurement (A/L, R/E) (principles v. rule based)

3
Q

Standard Settings (3)

A

Principles based: Broad

Rules Based: Specific

Objectives Oriented: Broad and specific

4
Q

Measurement

A

Asset/liability: to measure value at a point in time

Revenue/expenses: to measure values at points through time