It seems the lists keep getting bigger and bigger and I keep finding new ones I hadn’t heard of before after taking these mock exams. What is the best way to remember all the different qualitative aspects of financial statements under the different frameworks. For example I remember CONSistency TRANSparancy COMPrehensiveness is one. Not that I know what its for. Then you have reliability and all the others ones I honestly can’t remember off the top of my head. Any help here?
i remember it as TCHCS Transparency CompreHensiveness ConSistentcy and then there is URRCP Understandability Relevance Reliability ComParability
Those are characteristics of a coherent financial reporting system I think TCC just because living in Toronto, the public transit is called TTC. To remember them I think obvious “Trasnport – Transparacy” then the 2 C’s I think “CONstable (I associate police with this city – CONsistency” COMPrehensive – COMP ME please this city is f’n expensive!!! I actually just made those up now but thats how I will remember them. Honestly just write them down in the same order 10x, then take 3 minute break walk around do it again 10x and u will remember it. May as well learn URRC too – which I think of as “USSR” just “USSC” – Understandability, Relevence, Reliability, Comparability. Its easy to get these confused but remember the URRC most end in “ility” where as TCC dont.
also, because Reliability has more letters in it than Relevance, it is also the one that has the 5 other factors.
I like gartsy’s better
Isn’t there something with Materiality? Also I know the 5 factors are from the mock, but how do you remember those too? That’s actually the question that sparked this post because I was tired of seeing all these new factors of financial statements!
Toronto transit worked well for me. Thanks again Matt, that’s two.
Qualitative Characteristics: CUBUD ------> COMPARABILITY UNDERSTANDABILITY Benefit User Decisions RELEVANCE : Passing--------->Predictive Value Feeels --------> Feedback Value Mighty---------> Material Terrific --------> Timeliness RELIABILITY: N …obody R…ely S on P…ast Financials Unless C…ompletely Verified Neutrality Represent Faithfulness Substance over Form Prudence Completeness Contraints: Benefits vs Costs Materialility Reliability vs Timeliness : Think of this constraint - — 10 K vs 10Q: One is audited and more reliable and the other is unaudited but more timely.