Question 1

As a professional accountant who is concerned about the qualitative characteristics of preparing financial statements.

(a) You are required to:

1. Explain five (5) qualitative characteristics of IFRS that is used to prepare financial statements to your colleagues at the meeting. (10 marks)
2. Explain the difference between profit and profitability. (5 marks)

Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.