The following questions all relate to the qualitative characteristics of useful financial information as defined by the IASB’s Conceptual Framework for Financial Reporting:

(i) To which characteristic is the concept of materiality most closely related?

(ii) What three qualities would a piece of financial information possess if it was a perfectly faithful representation?

(iii) The characteristic of neutrality should be supported by the application of which accounting concept?

(iv) If a business applies a new accounting standard in its financial statements for the first time this year, which of the enhancing qualitative characteristics will almost certainly be diminished?

(v) If different, independent experts can largely agree that a piece of information is a faithful representation, what enhancing characteristic is that information said to possess?

(vi) To which of the enhancing characteristics is the accounting concept of consistency most closely related?