1. What is the primary objective of financial reporting? (1)

2. What is meant by the term qualitative characteristics of accounting information? (1)

3. Briefly describe the two fundamental qualities of useful accounting information. (2)

4. According to the Conceptual Framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the IASB assumes about the users of financial statements. ( 1)