The qualitative characteristics of Accounting Information
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The qualitative characteristics of Accounting Information
There are four main qualitative characteristics of accounting information and they are; relevance, reliability, understandability, and comparability. The qualitative characteristic of relevance is concerned with any information that should be included in the financial reports if it has any influence on the decision making of the users of the reports. The next qualitative characteristic is reliability. This is concerned with that the information should be complete, unbiased, and free from errors. The next qualitative characteristic is understandability. This is where users of the financial reports should be able to understand the accounting information with little or no difficulty. The final qualitative characteristic is comparability. Users of the financial reports should be able to compare the accounting information and this should be with either previous reports of the same business or against the competitors.
