Which of the following is not a key point of the Framework?
A) Relevance and faithful representation are the primary qualitative characteristics that financial information should possess.
B) Consistency should not be an end in itself.
C) The concept of prudence should always take precedence over reliability.
D) Financial information may lose its relevance if there is undue delay in reporting it.

Question

Quizplus · Accepted Answer

The Framework states that reliability is a primary qualitative characteristic and that prudence should be used where there is uncertainty, but it does not state that prudence should always take precedence over reliability. Option A is true, as relevance and faithful representation are the primary qualitative characteristics. Option B is partially true, as consistency is important but should not outweigh relevance or faithful representation. Option D is also true, as information may no longer be relevant if reported too late.

Which of the Following Is Not a Key Point of the Framework