Reliability: Reliability is described as one, of the two primary qualities (relevance and reliability) that … Comparability. As of this date, Scribd will manage your SlideShare account and any content you may have on SlideShare, and Scribd's General Terms of Use and Privacy Policy will apply. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Users can … Comparability, verifiability, timeliness and understandability are directed to enhance both relevant and faithfully represented financial information. As accountants, we are concerned about providing decision-useful information to the users of Learn more. Now customize the name of a clipboard to store your clips. If you wish to opt out, please close your SlideShare account. Qualitative characteristics & accounting principles slide show game, constraints on relevant and reliable information, Chapter 6-THEORETICAL & CONCEPTUAL FRAMEWORK, BP KOIRALA INSTITUTE OF HELATH SCIENCS,, NEPAL, Online reporting- Processes and Lessons Learned, No public clipboards found for this slide, Qualitative Characteristics of Accounting Information. Those characteristics should be maximised both individually and in combination. 5X|�� @ [Content_Types].xml �(� ę�r� ���;ht�X�i���9$��2�����iP�N��EH�dW�d�K&X�۟Vh���^?�4ڀT��Y. See our User Agreement and Privacy Policy. If you continue browsing the site, you agree to the use of cookies on this website. This chapter considers the qualities of financial information … Transactions and events must be accounted for and presented in the financial statements in a manner that is easily understandable by a user. Qualitative characteristics are the qualities or attributes that make financial accounting information useful to the users. Qualitative characteristics of accounting information that must be present for information to be useful in making decisions: 1. Enhancing Qualitative Characteristics. Relevance 2. Constraints on the qualitative characteristics 3.33 - 3.37 In deciding which information to include in financial statements, when to include it and how to present it, the aim is to ensure that financial statements yield information that is useful. Clipping is a handy way to collect important slides you want to go back to later. By: Shachie Garcia, Angeline Bigornia, Aubrey Aba, QUALITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION Representational faithfulness You can change your ad preferences anytime. 5. If you continue browsing the site, you agree to the use of cookies on this website. Primary Qualities of Accounting Information Capable of making a difference in the decision making of the user Must have predictive or feedback value Predicts or forecasts for users about the outcome of events of a company Looks like you’ve clipped this slide to already. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. It requires that the financial information should be related or pertinent to the economic decision. Major Ingredients: a) Predictive Value: - If the information can be used as an input for users making predictions. See our Privacy Policy and User Agreement for details. Scribd will begin operating the SlideShare business on December 1, 2020 PK ! 1. Carlo Vitug, Thomas Diaz, and Kirk Chu. Fundamental Qualitative Characteristics 4. (DOC) Qualitative characteristics of accounting information | babua Palit - Academia.edu The assignment provides you with the opportunity to develop an in-depth understanding of measurement and recognition issues related to financial accounting. Enhancing Qualitative Characteristics 1) Comparability(including consistency) 2) Verifiability 3) Timeliness 4) Understandability Environment and Theoretical Structure of Financial Accounting * Materiality (make a difference on decision) Materiality judgment should be made in the context of the nature and the amount of the item. Comparability Financial statements of one accounting period must be comparable to another in order for the users to derive meaningful conclusions about the trends in an entity's financial performance and position over time. DEFINITION : Making difference in a decision by helping users to form predictions about the outcomes of past, present and future events. 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