Feedback value of Accounting Information

Feedback value of Accounting Information - Headlines Topics...

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Headlines Topics Page 1. Introduction 1 2. Background and Concept 2 a. 2 b. Feedback value and its features 3 3. Significance accounting Information 4 4. How to assess feedback value 5 5. Conclusion 6
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Feedback Value of Accounting Information Introduction According to the FASB & IASB, accounting information has to maintain some qualitative characteristics, so that it serves it basic objectives. The basic objective of all financial reporting is to help the user decision making. On the basis of this financial reporting investor take the decision whether to invest or not, creditor decide whether to grant credit or not, tax authority decides about the tax. That is why FASB & IASB requires that accounting information must maintain some qualitative characteristics so that it is useful to the user. According to the FASB & IASB the two main qualitative characteristic of accounting information are relevance and reliability. An information to be relevance and reliable, they have to maintain other sub-quality. Feedback value or confirmatory value is one of them. 1
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Feedback Value of Accounting Information Background and Concept Background and History: The FASB (jointly with IASB) identified some characteristics of accounting information. At first, FASB began the process of developing the qualitative characteristics of useful financial information by reviewing its own framework and concepts as well as those of other standard setters. In July 2006, the Board published for public comment a Discussion Paper on this topic. That same paper also was published by the IASB. The Board and the IASB received 179 responses. In its re- publishing of the issues on this topic, the Board considered all of the comments received and information gained from other outreach initiatives. In May 2008, the Board and the IASB jointly published an Exposure Draft (Qualitative Characteristics of Useful Financial Information) The FASB Framework
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This note was uploaded on 07/01/2011 for the course ACCOUNTING 4202 taught by Professor Sarker during the Spring '11 term at United International University.

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Feedback value of Accounting Information - Headlines Topics...

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