Qualitative Characteristics of Accounting information

Qualitative Characteristics of Accounting Information
Accounting information must posses some qualitative characteristics. These are the attributes that make the information provided in the financial statements useful to the users. The four main characteristics are 1.Relaibilty 2.Relavence 3.Uderstandibilty. 4. Comparability


1


Faithful Representation


Neutrality


Prudence

Completeness
2. Relevance
3. Understandibilty.The financial statements should be simple
.Even a person with no professional
Background should be able to understand the
Information and take benefit of it.

4. Comparability
• . The financial statements should be
Consistent.
• . Disclosure