[nikand3]

NINJA Question –

Hi all,

I couldn’t find this in the forum so here we go. Im going through the FAR Ninja notes and noticed the IASB qualitative characteristics are listed the same as the SFAC qualitative characteristics (below). I though IASB had the characteristics below, but this isn’t what i see in the notes. Did this change?

Qualitative Characteristics

1. Relevance

Makes a difference to user

Predictive Value – Predicts Future

Confirmatory Value – Evaluates Past

 

2.Reliability

Neutrality

Faithful representation

Substance over form

Prudence

Completeness

3. Understandability

4.Comparability

Much appreciated,

Nick

[Anonymous]

LAST time a cheked they were the same and according to the IFRS qualitative characyerictics list that Jeff's Audio provided they are the same too. I had this MCQ recently:

With respect to the qualitative characteristics of useful financial information, what are U.S. GAAP and IFRS differences?

A.
The qualitative characteristics for U.S. GAAP are more precise and longer than the objective for IFRS.

B.
With the issuance of SFAC 8, chapter 3, U.S. GAAP and IFRS have the same “Qualitative Characteristics of Useful Financial Information.”

C.
The qualitative characteristics for IFRS are more precise and longer than the objective for U.S. GAAP.

D.
FASB and IASB are working toward convergence of the qualitative characteristics.

Ans was B and this was the explanation:
The FASB and IASB have been working toward convergence of the qualitative characteristics. As a result, SFAC 8 replaced SFAC 2. Now U.S. GAAP and IFRS (International Financial Reporting Standards) have the same qualitative characteristics for financial reporting purposes.

[nikand3]

Thanks cortes123, I need to get updated study materials.

[Author]

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