ACC206:

(a) The Singapore "Conceptual Framework for Financial Reporting" on qualitative characteristics deals with the attributes that make financial information useful. Explain the following two (2) qualitative characteristics:

(i) Relevance; and

(ii) Verifiability. (6 marks)

(b) Under FRS 115 Revenue from Contracts with Customers, an entity recognises revenue over time when it transfers control of a good or service over time and, therefore, satisfies a performance obligation over time. For measuring progress towards complete satisfaction of a performance obligation over time, the entity can choose to use the output method or the input method. Explain and illustrate with suitable examples what these methods are. (10 marks)