What Are The Major Constraints On Relevant And Reliable Financial Sta

1.	What Are The Major Constraints On Relevant And Reliable Financial Statements?
Answer» The major CONSTRAINTS on relevant and RELIABLE financial statements are: Timeliness: If there is undue delay information becomes irrelevant. Balance between cost and benefit: The benefits derived from information should exceed the cost of providing it. Balance between the various qualitative characteristics: In practice it has BECOME necessary to achieve an appropriate balance between the qualitative characteristics. True and fair view PRESENTATION: There is no clarity in the TERM true and fair view as required by the Companies Act. The conceptual framework does not discuss this. The major constraints on relevant and reliable financial statements are:

What Are The Major Constraints On Relevant And Reliable Financial Statements?

Answer»

The major CONSTRAINTS on relevant and RELIABLE financial statements are:

Timeliness: If there is undue delay information becomes irrelevant.
Balance between cost and benefit: The benefits derived from information should exceed the cost of providing it.
Balance between the various qualitative characteristics: In practice it has BECOME necessary to achieve an appropriate balance between the qualitative characteristics.
True and fair view PRESENTATION: There is no clarity in the TERM true and fair view as required by the Companies Act. The conceptual framework does not discuss this.

The major constraints on relevant and reliable financial statements are: