Quantitative Characteristics of Accounting Information

QUANTITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION.
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QUANTITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION.
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EXECUTIVE SUMMARY
The purpose of this essay is to discuss the qualitative characteristics of a good accounting
information with reference to an Australian accounting standards (AASB).it deals with features
like faithful representation, comparability, understandability, reliability and relevance. The report
also shows how this features are shown in the annual reports of virgin holdings limited and how
investors and the security market react to this information.

QUANTITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION.
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Table of Contents
1.0 PART 1.................................................................................................................. 4
1.1 INTRODUCTION................................................................................................. 4
1.2 REVALUATION.................................................................................................... 4
2.0 PART 2.................................................................................................................. 5
2.1 AUSTRALIAN CONCEPTUAL FRAMEWORK..........................................................5
2.2 FUNCTIONS OF AUSTRALIAN CONCEPTUAL FRAMEWORK..................................5
2.3 QUALITATIVE FEATURES OF ACCOUNTING INFORMATION.................................5
2.4 COMPAREABLITY................................................................................................ 6
2.5 RELIABILITY....................................................................................................... 6
2.6 FAITHFUL REPRESENTATION..............................................................................6
3.0 PART 3.................................................................................................................. 6
3.1.0 VIRGIN HOLDINGS LIMITED 2018 ANNUAL REPORTS.........................................6
3.1.1 PRUDENCE CONCEPT..................................................................................6
3.1.2 UNDERSTANDABILITY..................................................................................7
3.1.3 COMPAREABILTY......................................................................................... 7
3.1.4 FAITHFUL REPRESENTATION.......................................................................7
3.1.5 RELEVANCE................................................................................................. 8
4.0 PART 4.................................................................................................................. 8
4.1 REACTION OF INVESTORS AND SECURITY MARKET...........................................8
5.0 CONCLUSION........................................................................................................ 9
6.0 REFERENCES...................................................................................................... 10
7.0 APPENDICES:...................................................................................................... 12
7.1 APPENDIX I:SALES REVENUES.........................................................................12

QUANTITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION.
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1.0 PART 1.
1.1 INTRODUCTION.
Virgin holding limited is an Australian ASX listed company and provides airline services to the
clients across the globe.it has arising profitability trajectory as shown in the following chart.
2011 2012 2013 2014 2015 2016 2017 2018
0
1000
2000
3000
4000
5000
6000
TOTAL REVENUE AND INCOME IN $MILLION
TOTAL REVENUE AND INCOME
1.2 REVALUATION
The Market value for other fixed assets like land changes from one period to another due to their
market value which keeps on increasing. Therefore, at the end of a financial period, the valuation
of such assets should be conducted so that their real market value is determined. The valuation of
assets will help the company present its financial statements in true and fair principles regarding
its assets. Truthfulness in financial statements is a key factor decision making by the users of
accounting information. A company will know its actual value of assets by conducting regular
revaluations. revaluing land therefore is a correct exercise done by the company and is in line
with the provision of Australian accounting standards of faithful representation of accounting
data.