When is financial information considered "understandable"?
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Part 1
A.
Information is understandable when a group of reasonably informed financial statement users are able to reach a consensus decision that reported information is a faithful representation of a company's activities.
B.
Information is understandable when it is classified, characterized, and presented clearly. This does not mean that an uninformed reader of financial statements should be able to understand all information presented.
C.
Information is understandable when it is classified, characterized, and presented clearly. This means that any uninformed reader of financial statements should be able to understand all information presented.
D.
Information is understandable when it is verifiable and reported in a timely manner.
