Relevant and reliability
Critically examine the role of “Relevance and Reliability” in the conceptual framework.
Globally, businesses and private individuals seek to have and operate a consistent way of report and recording accounting and financial information. Such activities will enable an entity to make decisions or improvements to their business. These decisions will unknowingly affect the stance in which an economy is in. If the accounting methods are consistent, the operation of the business will be much more efficient and therefore the existing reporting period is then able to be compared with the previous reporting periods. Thus, resulting in better decision making carried out by the business owner. In Australia, the conceptual framework gives Australian businesses and consumers a better knowledge and understanding of financial reporting. It provides an insight to basic goals, the users of the financial information, definition of key essential terms and the primary concepts to Accounting. WestOne Services, the Conceptual Framework in Australia, Accounting and Finance 3B, Concepts and Regulations, viewed 33rd of September 2011, .
Accounting standards are not basic natural law however it is in an economy’s best interest to have them implanted as they will assist with society harmony. They help with the funding for resolving basic disputes. Specifically, from the four qualitative characteristics, Relevance and Reliability are critically examined to see what role they take in the conceptual framework.
Accounting information that is to be placed under Relevance, are data that are relevant to the subject currently being discussed and its inclusion the accounting process will likely to affect the decision that is to be made. On the other hand, information that is to be placed under Reliability, are data that can be acknowledged from a trustworthy and reliable source. It is compulsory to be able to be verified without any sort of bias or misrepresentation. University of
Globally, businesses and private individuals seek to have and operate a consistent way of report and recording accounting and financial information. Such activities will enable an entity to make decisions or improvements to their business. These decisions will unknowingly affect the stance in which an economy is in. If the accounting methods are consistent, the operation of the business will be much more efficient and therefore the existing reporting period is then able to be compared with the previous reporting periods. Thus, resulting in better decision making carried out by the business owner. In Australia, the conceptual framework gives Australian businesses and consumers a better knowledge and understanding of financial reporting. It provides an insight to basic goals, the users of the financial information, definition of key essential terms and the primary concepts to Accounting. WestOne Services, the Conceptual Framework in Australia, Accounting and Finance 3B, Concepts and Regulations, viewed 33rd of September 2011, .
Accounting standards are not basic natural law however it is in an economy’s best interest to have them implanted as they will assist with society harmony. They help with the funding for resolving basic disputes. Specifically, from the four qualitative characteristics, Relevance and Reliability are critically examined to see what role they take in the conceptual framework.
Accounting information that is to be placed under Relevance, are data that are relevant to the subject currently being discussed and its inclusion the accounting process will likely to affect the decision that is to be made. On the other hand, information that is to be placed under Reliability, are data that can be acknowledged from a trustworthy and reliable source. It is compulsory to be able to be verified without any sort of bias or misrepresentation. University of
References: List WestOne Services, the Conceptual Framework in Australia, Accounting and Finance 3B, Concepts and Regulations, viewed 33rd of September 2011, University of Mississippi, 2002, Chapter 2 – the Conceptual Framework, viewed 33rd of September 2011, (Hoggett, Edwards, Medlin, Tilling, 2009, Financial Accounting, 7th edition, John Wiley & Son Australia ltd, Milton QLD, pg. 443) (Carlon, Mladenovic, Loftus, Palm, Kimmel, Kieso, Weygandt, 2009, Accounting, 3rd edition, John Wiley & Son Australia ltd, Milton QLD, pg. 38).