Knowing the Characteristics of IFRS Statements
Part of the IFRS For Dummies Cheat Sheet (UK Edition)
IFRS financial statements come in various shapes and sizes, but they all have certain features in common. Information in IFRS financial statements has these characteristics:
Relevance: So that it makes a difference to the decisions about a company made by users of the statements.
Faithful representation: Financial statements are complete and free from bias and error.
Comparability: You can compare financial statements from one period to the next or for two companies in the same industry so that you can make informed decisions about the companies.
Verifiability: Different people could reach the same decision based on the information, but not necessarily reach complete agreement.
Timeliness: You make information available to users in good time. Historical information quickly becomes out of date.
Understandability: You present and classify information clearly and concisely to make it understandable to users.