What are relevance, reliability, comparability and understandability?

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• Qualitative Characteristics of Financial Information

  For example, conflicts may arise between relevance, reliability, comparability, and understandability. The goal is to find a trade-off that still enables the objectives to be met (ASB, 1999).

• Accounting Qualitative Characteristics

  Relevance (g) Two qualitative characteristics that are related to both relevance and reliability. Comparability, Consistency (h) Neutrality is an ingredient of this primary quality of accounting information.

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  understandability 2. relevance 3.

• Information Needs of Users Based on Qualitative Characteristics

  The two fundamental qualities, relevance and faithfulness (what used to be called reliability), are often at odds.

• This post addresses the quality of accounting information.

  -Value of relevance, reliability, consistency, and comparability Reliability is definitely the most important quality for a financial statement. The financial statements are being prepared for the external users.

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  Key Characteristics of Accounting: Understandability This implies the expression, with clarity, of accounting information in such a way that it will be understandable to users - who are generally assumed to have a reasonable knowledge of business

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  --7) These are the ingredients needed to ensure that the information is relevant D ---8) These are the ingredients needed to ensure that the information is reliable B ---9) Includes consistency and interacts with relevance and reliability to contribute

• Behavioural Accounting Research & Qualitative Characteristics Identified by the IASB.

  Thus according to the FASB, Relevance and reliability are primary decision-specific qualities, while comparability and consistency are considered secondary qualities.

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  Fundamental qualities SFAC No. 2 notes that useful information must have the characteristics of relevance, reliability, and comparability/consistency: Primary Qualities ?