- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 1. Introduction to Financial Statement Analysis
- Subject 4. Comparison of IFRS with Alternative Financial Reporting Systems
CFA Practice Question
The international financial reporting standards framework identifies four qualitative characteristics that make financial information useful. They are ______.
II. relevance
III. transparency
IV. comprehensiveness
V. consistency
VI. reliability
VII. comparability
I. understandability
II. relevance
III. transparency
IV. comprehensiveness
V. consistency
VI. reliability
VII. comparability
Correct Answer: I, II, VI and VII
Notice the difference between this question and the "characteristics of an effective financial reporting framework" one.
User Contributed Comments 5
| User | Comment |
|---|---|
| 3dmouse | The answer is right (P109). Note that on P679 it says updated info 1. relevance 2. Predictive Value 3. Faithful representation ( an emphasis on economic substance over form, reliability , and completeness) 4. neutrality ( absence of bias) 5. verifiability I think the textbook itself is not consistent in this subject. |
| gazelle | Transparency,Comprehensiveness and Consistency are the 3 characteristics of a coherent financial reporting framework. |
| ybavly | qualitative characteristics are: U R Really Cool - URRC - saw someone post this earlier and it was helpful. |
| robbiecow | nice one @ybavly |
| leon121 | THANKS YBAVLY |