Qualitative characteristics of useful financial information and Quarterly rate: Difference between pages

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imported>Doug Williamson
(Create page - source - IAS Plus - https://www.iasplus.com/en/standards/other/framework)
 
imported>Doug Williamson
m (Category added 9/10/13 and spacing)
 
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''Financial reporting - International Financial Reporting Standards (IFRS) - Conceptual Framework for Financial Reporting (Conceptual framework) - International Accounting Standards Board (IASB).''
The quarterly rate of interest (or yield) is a quoting convention for the simple interest ''nominal annual rate'' for compounding once per quarter (four times per year).


The financial reporting Conceptual framework identifies the fundamental qualitative characteristics of useful financial information as:
For example, if the quoted quarterly rate is 6.00%, the amount of interest compounded quarterly is 6.00%/4 = 1.50%.


*Relevance, and
Not to be confused with the related ''annual effective'' rate, which in this case is 1.015<sup>4</sup> - 1 = 6.14%.
 
*Faithful representation.
 
 
The Conceptual framework goes on to identify the following further characteristics as enhancing the usefulness of relevant and faithfully represented financial information:
 
*Comparability
*Verifiability
*Timeliness, and
*Understandability.




== See also ==
== See also ==
* [[Accounting concepts]]
* [[Annual effective rate]]
* [[Comparability]]
* [[Nominal annual rate]]
* [[Conceptual framework]]
* [[Periodic rate of interest]]
* [[Faithful representation]]
* [[Financial reporting]]
* [[International Accounting Standards]]
* [[International Accounting Standards Board]]  (IASB)
* [[International Financial Reporting Standards]]  (IFRS)
* [[Neutrality]]
* [[Prudence]]
* [[Qualitative techniques]]
* [[Relevance]]
* [[Stewardship]]
* [[Substance over form]]
* [[Timeliness]]
* [[True and fair view]]
* [[Understandability]]
* [[Useful financial information]]
* [[Verifiability]]
 


== External links ==
[[Category:Manage_risks]]
*[https://www.iasplus.com/en/standards/other/framework Conceptual framework for financial reporting - IAS Plus]
*[[Media:IFRS_conceptual-framework-project-summary.pdf|IFRS Conceptual Framework Project Summary 2018]]

Revision as of 13:59, 9 October 2013

The quarterly rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per quarter (four times per year).

For example, if the quoted quarterly rate is 6.00%, the amount of interest compounded quarterly is 6.00%/4 = 1.50%.

Not to be confused with the related annual effective rate, which in this case is 1.0154 - 1 = 6.14%.


See also