[Anonymous]

“According to FASB conceptual framework, which of the follow relates to both relevance and reliability?

Predictive value, Materiality, Neutrality, Timeliness”

I marked timeliness and heres why. Relevance and faithful representation (reliable) are the two qualitative characteristics. Timeliness is an enhancing qualitative characteristic and thus should effect both.

Relevance = preidctive value, confirming value, materiality

Faithful rep (reliable) = completeness, neutrality, free from error.

You’d think choice A, B, and C would all be specific to either relevance or reliable.

Well, Becker completely ignores its own lecture and says timeliness is only a characteristic or relevance and that materiality is a characteristic of both.

My question for this is now – what is correct? Is the book/lecture correct (therefore my answer would be the right one) or is the MCQ correct?

[Anonymous]

Bueller?

[Author]

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