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ACC410 Financial reporting GAAP 1B

ACC410 Financial reporting GAAP 1B - correct prior...

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(In correspondence to Learning Outcome 1b) According to SFAC 2, Qualitative Characteristics of Accounting Information , the ingredients of relevance include     Feedback value, predictive value, and timeliness.        Relevance is the capacity of information to make a difference in the user’s decision. The principle  ingredients of relevance are feedback value [“the quality of information that enables users to confirm or 
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Unformatted text preview: correct prior expectations” (SFAC 2)] and predictive value [“the quality of information that helps users to increase the likelihood of correctly forecasting the outcome of past or current events” (SFAC 2)]. Timeliness means “having information available to a decision maker before it loses its capacity to influence decisions” and is described by SFAC 2 as an ancillary aspect of relevance. 1...
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