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A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors.Required:1. What are the two primary qualitative characteristics of accounting information?2. Does GAAP routinely require companies to disclose forecasts of financial variables to external users? Indicate yes or no and explain how your answer relates to the qualitative characteristics of accounting information.

A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors.Required:1. What are the two primary qualitative characteristics of accounting information?2. Does GAAP routinely require companies to disclose forecasts of financial variables to external users? Indicate yes or no and explain how your answer relates to the qualitative characteristics of accounting information.

Contemporary Auditing
Contemporary Auditing
11th Edition
ISBN:9781337650380
Author:KNAPP
Publisher:KNAPP
Chapter5: Ethical Responsibilities Of Independent Auditors
Section5.2: American International Group, Inc.
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A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors.
Required:
1. What are the two primary qualitative characteristics of accounting information?
2. Does GAAP routinely require companies to disclose forecasts of financial variables to external users? Indicate yes or no and explain how your answer relates to the qualitative characteristics of accounting information.

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