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The fundamental qualitative characteristics that financial information must possess to be useful to the primary users of general purpose financial reports-identified in the Conceptual Framework are 'relevance' and 'faithful representation'.
Required:
Question a) Provide one example where information is relevant but not faithfully represented.
Question b) Provide one example where information is not relevant but is faithfully represented.
Question c) Provide one example where information is relevant and faithfully represented.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
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