Exam 2: The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Which of the following accounting policies is an example of a trade-off between relevance and faithful representation?

Which of the following are considered in the AASB Framework as primary qualitative characteristics?

Which of the following actions best describes the qualitative characteristic 'relevance'?

Which of the following Statement of Accounting Concepts are still operational in Australia?

The efficiency perspective is consistent with limiting accounting policy choices in the interest of consistency and comparability.

Jackson Ltd is developing computer software for use in its courier delivery service business.So far the company had spent $50 000 but the software is still unfinished and not expected to be finished in time for the preparation of the reports.As a result,the company had to purchase a computer package amounting to $100 000 to finalise its accounts.There is no further use for the unfinished software as it is expected that the purchased computer package could be used by the entity for another 10 years.Which accounting treatment would be consistent with the Framework?

The AASB Framework has the force of law.

Discuss some of the criticisms of the conceptual framework.

With the convergence project between IASB and FASB explain why there is a need for a revised conceptual framework.

Which of the following is/are characteristics of 'comparability'?

Which of the following statement(s)is/are true of the qualitative characteristic 'faithful representation'?

In accordance with IASB Conceptual Framework which of the following transaction(s)is/are consistent with a definition of income?