Reliability of financial information
The draft emphasize on the managements stewardship information in enhancing reliability of financial information as part of the decisions making which expresses the information used management measures in facilitating accurate financial informations while certifying the credibility of the financial reports to meet the primary objective of financial reporting.
Substance over form in financial information
The exposure draft accentuates the substance over form of firms financial transaction which ensure the measurement criteria which describes the recognition of the single basis measurement are comply with the management application in reporting the respective events. The drafts also emphasizes relevance and the cost constraint attached to the use of the single measurements basis advocates the adoption of the multiple measurement approach to enhance the substance over form in the reported financial information.
Understandability of financial information
Exposure Draft heightens proposal concerning understandability presentation and disclosure of the financial information. The exposure draft accentuates the guidelines under which the financial statements are presented as well as substantive procedure in disclosing the financial activities. The drafts accentuates the reporting flexibility which provides relevant financial information that clearly describes the companys assets as well as liabilities among other transactions in the different events over the periods.
Materiality of financial information
Exposure draft also heightens on the comparability measures which is describe under the emphasis of Qualitative characteristics of useful financial information in adopting consistent reporting and disclosure measures in the reporting periods. The draft accentuates the entity requirements in providing the specific information which are considered more useful as well as using the efficient language to promote effective communication of aspect of financial statements.
Relevance of financial information
Provision of IASB draft on the relevant information in the financial statement where qualitative characteristics of usefulness of financial information highlights the various factors which describe the companys depth of the financial information. The exposure draft proposes to enhance prominent in enhancing the relevance in financial statements by reintroducing the discussion on the objectivity of financial reporting which triggers the management procedures in facilitating the significance of providing pertinent information in financial reports.
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