Calculate ratios and evate profitability (LO2) 2014 $185.234 395,740 SI8.62 Identify qualitative characteristics (LO 3) E2-8 The following information is available for Camece Corporation for the year ended Decen except share price); orporation for the year ended December 31 (in thousands 2015 Income available for common shareholders $65,286 Weighted average number of common shares 395,793 Share price $17.07 Instructions (a) Calculate the basic earnings per share and price-carnings ratio for each year. Based on your calculations above, how did the company's profitability change from 2014 to 2013 E Here are some fundamental and enhancing qualitative characteristics of useful financial information 1. Comparability 7. Neutrality 2. Completeness 8. Predictive value 3. Confirmatory value 9. Relevance 4. Faithful representation 10. Timeliness 5. Freedom from error 11. Understandability 6. Materiality 12. Verifiability Instructions Match each characteristic to one of the following statements, using the numbers 1 to 12 Accounting information cannot be selected, prepared, or presented to favour one set of interested users over another Accounting information must be available to decision makers before it loses its ability to influence their decisions. Accounting information is prepared on the assumption that users have a reasonable understan ling of accounting and general business and economic conditions Accounting information provides a basis to evaluate a previously made decision Accounting information includes everything it needs to and nothing important is omitted. This is an important component of faithful representation Accounting information helps users make predictions about the outcome of past, present and future events. Accounting information about one company can be evaluated against the accounting information from another company. Accounting information is included if its omission or misstatement could influence the economic decisions of users. This is an important component of relevance. All the accounting information that is necessary to faithfully represent economic reality is included. Accounting information can be determined to be free of material error Accounting information is included if it will make a difference in users' decisions. Accounting information about a company can be confirmed by two or more users to be faithful representation. 3 @ @ @s eese Identify assumption or principle. (LO3) E2-10 Marietta Corp. had the following reporting issues during the year: 1. Land with a cost of $208,000 that is intended to be used by the company as a building site was reported at its current value of $260,000 2. A surplus parcel of land with a cost of $150,000 intended for resale in the near future is reported at its current value of $160,000