College 2: Artikel Erb en Pelger

Question

What is the purpose of this Artikel?

Answer 1

The construction and reconstruction of reliability in financial reporting standard-setting.

Answer 2

One of the most important properties of financial accounting has been the qualitative characteristics of reliability.

Answer 3

The trade-off between relevance and reliabiliy has shape accounting discourse over years.

Answer 4

In 2010, reliability was replaced by “faithful representation”

Answer 5

Information shall be understandable

Answer 6

Information is available to decision makers before it loses its capacity to influence decisions

Answer 7

Capable of making a difference whether the users use it or not

Answer 8

That helps assure users that information faithfully represents the economic phenomena (werkelijkheid)

Answer 9

Verifiable, objective evidence, ensuring the ‘‘dependability of the accounts as acentral concept of accounting practice.

Answer 10

Impersonal and external to the person most concerned, in contrast with that person’s unsupported opinion or desire

Answer 11

Historically, the beginning of bookkeeping practices was based on using accounting the help people remember past transactions, because the human brain is limited

Answer 12

Closely related to auditing function

Answer 13

Trade was facilitated by keeping accounts which could be verified by third parties (e.g. creditors)

Answer 14

Guaranteeing that accounting information is a faithful representation of what it purports to represent, ‘‘coupled with an assurance for the user, which comes through verification, that it has that representational quality.

Answer 15

Thus, representational faithfulness and verifiability are equally important components of reliability, supplemented by the related concept of neutrality

Answer 16

free from error and bias and faithfully represents

Answer 17

Practioners were strongly opposed to current values in financial statements

Answer 18

faithful representation can be linked to the increasing influence and promotion of current value

Answer 19

To be reliable, the information contained in financial statements must be neutral

Answer 20

free from bias

Answer 21

Assets or income are not overstated and liabilities or expenses are not understated.

Answer 22

conceptually extends the boundaries of appropriate financial reporting

Answer 23

the original idea of the verifiability of accounting

Answer 24

The absence of bias intended to attain a predetermined result or to induce a particular behaviour

Answer 25

Neutrality is supported by the exercise of prudence

Answer 26

the exercise of conservatism, in the form of a degree of caution, under conditions of uncertainty, in not overstating net assets

Answer 27

the exercise of conservatism, in the form of a degree of caution, under conditions of uncertainty, in overstating net assets

Answer 28

the absence of conservatism, in the form of a respect for neutrality, avoiding a deliberate understatement of net assets

Answer 29

the absence of conservatism, in the form of a respect for reliability, avoiding a deliberate overstatement of net assets

Answer 30

faithfully represent

Answer 31

reliability

Answer 32

Conservatief

Answer 33

The Board sought a balance between providing high-level concepts and providing enough detail for the Conceptual Framework to be useful to the Board and others.

Answer 34

The Conceptual Framework as a practical tool to help it use Standards.

Answer 35

Users of financial reports need information to help them assess management’s stewardship.

Answer 36

the Board clarified the roles of prudence, measurement uncertainty and substance over form in assessing whether information is useful.

Answer 37

Compromise between practioners and academic views

Answer 38

Reliability = verifiability + faithful representation

Answer 39

Verifiability: no fair value

Answer 40

Extending of the boundaries of financial reporting away from verifiability to forwardlooking estimates (relevance over reliabililty)

Answer 41

Constituents will continue to use the term ‘reliabiliy”.

Answer 42

As qualitative characteristics are (necessarily) abstract and vague notions, however, they remain open to a broad range of different interpretations

Answer 43

Due to agreement for best solution to problems: theory was created

Answer 44

Creation of accounting standards based on sound theory>> academic involvement

Answer 45

To analyze best standard: qualitative characteristics

Answer 46

Verifiability

Answer 47

Objectivity

Answer 48

Freedom from bias

Answer 49

Quantifiability

Answer 50

Faithfull representation

Answer 51

traditional idea of objectivity reflected in the characteristic of verifiability

Answer 52

deeply entrenched in accounting practice but redefined as the academics’ consensus concept

Answer 53

the faithful representation of economic phenomena as part of economic decision models with a focus on valuation decisions by users

Answer 54

Practioners were strongly opposed to current values in financial statements

Answer 55

because of pragmatic concerns by standardsetters about financial derivatives

Answer 56

adopt a long-term vision of fair value measurement in other fields of financial reporting

Answer 57

including verifiability as an aspect of faithful representation could result in excluding information that is not readily verifiable

Answer 58

would make the financial reports much less useful

Answer 59

verifiability is desirable but not necessarily required

Next up

College 2: Artikel Erb en Pelger

Description

Resource summary

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Question 21

Question 22

Similar

	Created by Burak Baharli over 5 years ago