Q.1.1 - Q.1.2 Financial statements should always reflect a true and fair view of a business's affairs. It is the duty of accountants to ensure that the financial statements provide a faithful representation of the financial position of the organisation. To achieve this, certain qualitative characteristics are to be applied. In your own words describe what you understand by both fundamental qualitative characteristics and enhancing qualitative characteristics. Hint: Name each of the characteristics under each of the headings - Fundamental qualitative characteristics and Enhancing qualitative characteristics and provide a short description of each characteristic. Provide one actual example from the business world that supports the necessity for the use of good quality accounting information or the lack thereof (Hint: The Enron scandal of 2003 in the USA where the financial information had been falsified to mislead investors). (1) Q.1.3 Why has South Africa changed from the Accounting Standards known as GAAP (Generally Accepted Accounting Standards) to the IFRS (International Financial Reporting Standards), beyond the obvious reason that business is frequently done across national boundaries in the modern era? (2) Good to go Search i (14)
Q.1.1 - Q.1.2 Financial statements should always reflect a true and fair view of a business's affairs. It is the duty of accountants to ensure that the financial statements provide a faithful representation of the financial position of the organisation. To achieve this, certain qualitative characteristics are to be applied. In your own words describe what you understand by both fundamental qualitative characteristics and enhancing qualitative characteristics. Hint: Name each of the characteristics under each of the headings - Fundamental qualitative characteristics and Enhancing qualitative characteristics and provide a short description of each characteristic. Provide one actual example from the business world that supports the necessity for the use of good quality accounting information or the lack thereof (Hint: The Enron scandal of 2003 in the USA where the financial information had been falsified to mislead investors). (1) Q.1.3 Why has South Africa changed from the Accounting Standards known as GAAP (Generally Accepted Accounting Standards) to the IFRS (International Financial Reporting Standards), beyond the obvious reason that business is frequently done across national boundaries in the modern era? (2) Good to go Search i (14)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Q.1.1
- Q.1.2
Financial statements should always reflect a true and fair view of a business's
affairs. It is the duty of accountants to ensure that the financial statements
provide a faithful representation of the financial position of the organisation.
To achieve this, certain qualitative characteristics are to be applied.
In your own words describe what you understand by both fundamental
qualitative characteristics and enhancing qualitative characteristics.
Hint: Name each of the characteristics under each of the headings - Fundamental
qualitative characteristics and Enhancing qualitative characteristics and provide a
short description of each characteristic.
Provide one actual example from the business world that supports the necessity
for the use of good quality accounting information or the lack thereof (Hint: The
Enron scandal of 2003 in the USA where the financial information had been
falsified to mislead investors).
(1)
Q.1.3
Why has South Africa changed from the Accounting Standards known as GAAP
(Generally Accepted Accounting Standards) to the IFRS (International Financial
Reporting Standards), beyond the obvious reason that business is frequently done
across national boundaries in the modern era?
(2)
Good to go
Search
i
(14)
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