FAR — Quick Sheet
Conceptual Framework & Financial Statement Presentation
Read time: ~5 minutes
One-minute revision
- 2 fundamental characteristics: Relevance, Faithful Representation
- 4 enhancing characteristics: Comparability, Verifiability, Timeliness, Understandability
- 5 required statements: Balance sheet, Income statement, Comprehensive income, Cash flows, Equity
- OCI = "PUFI": Pension adjustments, Unrealized AFS debt security gains/losses, Foreign currency translation, Instrument-specific credit risk
- Revenue = ongoing major operations. Gain = peripheral/incidental.
COMMON TRAP: Don't confuse "comprehensive income" (net income + OCI) with "other comprehensive income" (just the OCI piece) — the exam tests this distinction directly.