Question

Comparability and Consistency. due 1202, 1.4 points (if outstanding; 1.2 points for acceptable work)- Two of the qualitative characteristics (I will call them concepts) of high-quality accounting information are comparability and consistency. Comparability means that different companies report the same account using similar standards. Consistency means the same company reports the same account from year to year using similar standards across years. Option 1. Please provide an example of these of comparability and consistency. Also please provide exceptions when you think it is appropriate to depart from these concepts. Option 2. If you prefer to demonstrate by actual example, choose two companies in the same industry to illustrate how they report an account in a comparable manner. Compare the footnote disclosures for the account by the two companies. Also, for one of the companies, examine the same account and footnotes five years earlier.

Answer 1

Answer compartikels The Two qualitative accounting infamation are Comparability refers accounting principle requires Companies financial statments bring defined set principal standard boord Authontes defined proced givele companys provide a clear pictuer varkry stakheldon company and help the investors to Compare different information reported financial statercent the purpose of various decision making The various company in regard b assels value and help compulation and comparison value the organization the comparatibity cuccounting Prinple help ensuring prepared of comparable financial organization related different sectors help the stake holder to compare One Company relation without any additional financial statment figures in pare

Departur from comparability concept The organization depart standard of accounting principle defined preparation financial statment provided derration a true and four justified by adequate reason and should be reported part of financial statement organization clearly and mention the reason deviating along with justification intances The organization will not apply going Concern principle and will apply different set accounting Standard compare adopted organization financial statement of the organization and and will help investors apporopriate decison