) The International Accounting standards Board (IASB)s 2018 conceptual framework identifies two fundamental qualities and four Enhancing qualities.

Required:

a) Identify and explain the two fundamental qualitative characteristics of accounting information.

b) Your friends who graduated from Mulungushi University have come together and started a small accounting and consultancy firm called MCC. You are on attachment with this small firm. KBC manufacturing company have requested MCC to prepare the financial statements for them. The following figures have been extracted from KBC and you have been tasked to preparing the manufacturing. The information extracted from the books of KBC manufacturing company: Direct labor 5,000 Factory overhead 3,500 Work in progress, at prime cost: At the beginning 2,500 At the end 1,000 Raw materials consumed K5, 000 Selling expenses 1,500 Prepare the manufacturing account

C) After preparing manufacturing account one of you friends commented that there was no need to prepare manufacturing company since the income statement which more comprehensive will be prepared. Do you agree with you friend or not explain