Qualitative Characteristics of Accounting Information

Qualitative Characteristics of Accounting Information Qualitative characteristics are the attributes that make the reading provided in financial statements useful to users. The four principal soft characteristics are understandability, relevance, reliability and comparability. It is also pointed out that these qualitative characteristics may need to be balanced against one a nonher. (John Wiley& Sons Australia, Ltd, 2009) The relative splendor of the characteristics in diverse cases is a matter of professional judgment. relevancy Relevance refers to the education provided with the statements of users associated with the purpose to be achieved. If a message has vigor to do with the statements of purpose of the user, which of course useless, which includes prediction, feedback functions, measurement function and seasonableness properties. relevant nurture also helps decision makers confirm or correct prior expectations; it has Feedback Value. (Obaidat, Ahmad N, 2007) Enterprises to provide accounting information to be able to be useful for decision-making, then the vivid requirement that such information associated with the decision-making. Irrelevant information is not to mention useful for decision-making.

Accounting information has come from alone aspects of the user; different users of accounting information have different requirements, so the same for different users of accounting information, its relevance allow for be different. Accounting information related to these decision-makers. But for the different decision-makers may not be relevant. At the same time, this coefficient of correlation also depends on the decision-makers in decision-making level and the specific decision-making patterns. Relevant degree of accounting information, if for different decision makers to take a different decision-making process, and the results would not be the same. Reliability Reliability means the information can be exactly expressed in sparing activity as it is.... If you want to get a copious essay, order it on our website: Orderessay

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