Question

In order to qualify as faithfully representative, what are the additional points laid out in IAS 1? a. Neutrality and substance over form

b. Consistency and comparability
c. Materiality and aggregation
d. Going concern and accrual basis

Answer 1

According to IAS 1, information must be neutral and reflect substance over form to be considered faithfully representative, highlighting the need for objective and economic reality-focused financial statements.

Step-by-step explanation:

In order to qualify as faithfully representative, the additional points laid out in IAS 1 include the need for information to be neutral and for the presentation to reflect the substance over form.

Neutrality means that information must be objective and free of bias, while substance over form requires financial statements to reflect the economic reality of transactions, not merely their legal form. These requirements are part of the fundamental qualitative characteristics that enhance the usefulness of financial information according to the International Accounting Standards Board's conceptual framework.