Criteria Are the Benchmarks Against Which Nonfinancial Information Will Be

question 5

Essay

Criteria are the benchmarks against which nonfinancial information will be evaluated while applying professional judgment during assurance engagements.According to the umbrella standards,suitable criteria should have which features?

---

Definitions:

FVE Method

Refers to the Fair Value Evaluation method, a technique for assessing an asset's worth at its current market value.

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, after intercompany transactions have been eliminated.

Equity Method

An accounting technique used by a company to record its investment in another company where it has significant influence but not full control, usually through the ownership of 20-50% of the voting stock.

Investment Revenue

Income earned from various forms of investments like stocks, bonds, and real estate properties.