FNST Qualitative characteristics

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The Magician
The Magician Registered Posts: 96 Epic contributor 🐘
in AAT Level 4 (Level 8 in Scotland)
Hi there,

If the FOUR qualitative characteristics of useful financial information are relevance, reliability, comparability and understandability.

Where do verifiability and timeliness fit in?

I assumed that you could merge relevance with timeliness and reliable with verifiability?

Is that the case here?

I asked my distance learning provider a week age and no reply.......

I really did do this ALL ON MY OWN.

Thanks very much for any help.

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  • uknitty
    uknitty Registered Posts: 591 Epic contributor 🐘
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    The standards for assessment changed as of September 2011. The characteristics *used* to be defined as "comparable, understandable, reliable ,relevant" (which I remembered with the acronym CURR) but they are now defined as

    "comparable, verifiable, timely and understandable" uh which I don't have an acronym for.

    If you are yet to sit your exam make sure that you have the updated definitions of the characteristics as this is almost always assessed in the FNST exam in some way, and the change to the definitions has caught people out previously . Link below is for the update to the Osborne text, which should help.


    http://www.osbornebooks.co.uk/files/ltd_co_accounts_amends_2011_1.pdf
  • MWAUGH1983
    MWAUGH1983 Registered Posts: 420 Dedicated contributor 🦉
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    Who is your provider magician ?
  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
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    Hi,

    The Conceptual Framework says that financial information must be proved to be free from bias or error, hence 'verifiable'.

    It also says that financial information must be made available to users before it loses its capacity to influence their decisions, hence 'timely'.

    All the best
    Steve

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