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How IFRS presentation and disclosure requirements can assist the predictive role of historically prepared financial statements?
Wiki User
∙ 12y ago
Cmon people, someone should know this.
Wiki User
∙ 12y ago
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What are the limitation of accounting?
The limitations of accounting are the following: Accounting estimates, professional judgment, verifiability, measurability, limited predictive value, fraud and error. Measurability is limitation due to all entries in accounting record must have a monetary value, and so there is no accounting measure of goodwill or workforce competence.
What are the fundamental qualitative characteristics of accounting information?
The user-specific quality is its understandability and usefulness for making decisions. The primary qualitative characteristics are Relevance and Reliability. The components of Relevance are materiality, predictive value, and feedback value (or confirmatory). Under Reliability (or faithful representation), the components are verifiability, neutrality, and representational faithfulness (i.e., free from error). The secondary qualities are Comparability and Consistency. In Comparability, you have to consider cost effectiveness (do benefits exceed costs?). For Consistency, there is a materiality constraint and recognition threshold.
How does management accounting information criteria conflicted with each other?
Each criteria of management accounting information is to satisfy the management needing for information useful for planning, controlling and decision making. However, these criteria also face conflict amongst one another. Conflict simply refers to the incompatibility or interference of one's idea, event, or activity with another. In this case, the conflict between criteria will happen when satisfying a criterion affects another criterion being difficult to fulfill as they are in collision with each other. Accounting information should be useful for decision-making, must have relevance and reliability of these two main qualitative characteristics. However, these qualities often can conflict, requiring a trade-off between various degrees of relevance and reliability. A forecast of a financial variable may possess a high degree of relevance to investors and creditors. However, a forecast necessarily contains subjectivity in the estimation of future events. Therefore, because of a low degree of reliability, generally accepted accounting principles do not require companies to provide forecasts of any financial variables. For examples, accounting information requirements associated with the timeliness, predictive value and feedback value, while the predictive value of accounting information may be due to a lack of verification, so that the reliability of damage; on the contrary, if always insisted truthfully, then wait until the conditions are ripe when the accounting information may have lost its predictive value. As the reliability and relevance cannot have both, one can only depending on the degree of emphasis by choosing one of the two, leading to a different accounting treatment. One of the most typical is the right choice of accounting measurement attributes. Besides that, another conflict can be a result of the criteria of Timeless and verifiability. Information is useful when it is timely. To be timely, the information must be available when needed to define problem or to be begin to identify possible solutions. Those criteria might conflict with verifiability. It is because when needed verifiability information, it may take time to calculate or to get it after production process is end. Verifiability is the useful information when it is accurate. Before relying on information to make decisions, it is important to ensure that the information is correct. For example, a production manager has to decide the actual amount of pineapple to be used in produce of 10000 units of pineapple juices. But, because of the time given is limited, he has to prepared the report to top management by forecast the amount of pineapple will be used. Although he is meet the criteria of timeliness, he is might not meet the criteria of verifiable. He do not used the actual amount of pineapple will be used. It is because there are some problems may occur during the production process: cost of pineapples is lower or others factors. When the production is end, he will able to know the actual amount of pineapple will be used. So, the criteria timeliness is conflict with the criteria verifiability. Another conflict is between timeliness and reliability of information. Information is said to be reliable when they incorporate all aspects of a transaction as well as other events in order to facilitate users in deciding on any issue regarding the latter. However, most of the times in providing timely reporting, those aforesaid transactions or events are never taken into account as it occurs after the report is prepared and thus impairing reliability. In interest of timeliness, the reliability of the information is sacrificed, every loss of reliability diminishes the usefulness of information and as time pass, and either the reliability of the information drops or increase accordingly. For example, the material supplier decides to supply only one of the Material A. Company Y is very interested and is capable to buy the Material A. The supplier is interested on selling the Material A to Company Y, but there is no contract signed between them. As time passes, the supplier received an offer from Company Z's, with a higher price and shorter time compared to Company Y. Therefore, Material A is selling to Company Z and Y loses the Material A. Company Y is reliable on material supplier to get the Material A yet the supplier needed to sell the Material A in a shorter time to get the profit. So, supplier decides to sell it to Company Z. Thus, the criterion of timeliness is conflict with criteria of reliability.
What is the Role of accounts in an organization?
Vital! The accounts are an essential element of the management information system. They tell management, in financial terms, what the company/organisation has done, but, more importantly, the accounts provide a basis for decision making. Although organisations are dependent on external factors for survival, careful management of resources (by means of accountinng information) can help to mitigate losses, but also must be used facilitate the identification and exploitation of opportunities. The accounts can provide various measures of efficiency and effectiveness, from identifying co-relationships between marketing activity and sales, to staff and asset performance. Good accounting can be used in a predictive way, and as a basis for rewarding those within the company/organisation who contributed to past success. Accounts can be an incentive to better business. Good budgeting therefore plays a part, all part of a good accounting system. The essence of good accounts includes accuracy, timeliness and clarity and simplicity of format, so that all users can make informed decisions.
Objectives of Financial Reporting?
-Relevance - Accounting information is relevant if it is capable of making a difference in a decision.Relevant information has:(a) Predictive value(b) Feedback value(c) Timeliness- Reliability - Accounting information is reliable to the extent that users can depend on it to represent the economic conditions or events that it purports to represent.Reliable information has:(a) Verifiability(b) Representational faithfulness(c) Neutrality2) Secondary qualities of useful accounting information:Comparability - Accounting information that has been measured and reported in a similar manner for different enterprises is considered comparable.Consistency - Accounting information is consistent when an entity applies the same accounting treatment to similar accountable events from period to period.Accounting Qualities and Useful Information for AnalystsHere is how these qualities provide analysts with useful information:Relevance- Relevant information is crucial in making the correct investment decision.Reliability - If the information is not reliable, then no investor can rely on it to make an investment decision.Comparability - Comparability is a pervasive problem in financial analysis even though there have been great strides made over the years to bridge the gap.Consistency - Accounting changes hinder the comparison of operation results between periods as the accounting used to measure those results differ.
What characteristics of a project call for a predictive approach to the SDLC?
Requirements well understood and well defined and have low technical risk.
If sensitivity and specificity remain constant what is the relationship of prevalence to predictive value positive and predictive value negative?
positive predictive value and negative predictive value wil not be affected.
What is the population of Applied Predictive Technologies?
The population of Applied Predictive Technologies is 175.
What is predictive nature?
Predictive Nature is finding a pattern and figuring out what is going to happen.
When was Applied Predictive Technologies created?
Applied Predictive Technologies was created in 1999.
Where can I find a predictive dialer online?
Predictive dialers can be easily found online by using any search engine! If you are interested in trying a predictive dialer with a free trial, try www.telstarhosted.com. Www.hosteddialer.com is also a great, cheap, and reliable predictive dialer system!
What kind of a system is a predictive dialer systems?
A predictive dialer system is a telephone control system. A predictive dialer system automatically calls a list of telephone numbers in a specific sequence.
Adverb of predict?
It is predictive.
Does your phone have a predictive dialer solution?
My phone does not have a predictive dialer solution. There are several services that offer this available online.
What is predictive modeling?
Predictive Modelling is made up of predictors which are changeable factors that are likely to influence future results.
How do predictive dialers work?
Predictive dialers work by using algorithms to predict how soon a call will be answered and who is available to take the call. A predictive dialer can increase the effectiveness of a telephone sales or marketing campaign.
Why do collection agencies use predictive dialers?
The reason why collection agencies use predictive dialers is because, more calls are made and predictive dialers do it all for you automatically. They also raise the productivity of agents.
