The ability to do intra-firm comparison (within the same company), inter-firm comparison (with other companies), and market sector comparison(comparison within the same market sector) makes accounting information easy to work with. 1. Primary Decision-Specific Qualities Relevance and reliability are the two primary qualities that make accounting information useful for decision making. To fulfill this quality the user must have sufficient knowledge to understand the information; since information is vitally important for decision-making, some information cannot be biased by its complex level of comprehensibility. T o achieve stated objectives and Reliability: Reliability is described as one, of the two primary qualities (relevance and reliability) that … The accountant should record and report on accounting transactions from a neutral perspective, without any bias that would give the reader an incorrect impression about the financial position , results, or cash flows of a business. PDF | On Jan 1, 2007, Ahmad N. Obaidat published Accounting Information Qualitative Characteristics Gap: Evidence from Jordan | Find, read and cite all the research you need on ResearchGate In order to be useful to a user, accounting information should have the following characteristics: Prepared objectively . 3. the characteristics of the information itself and, therefore, understandability cannot be evaluated in overall terms but must be judged in relation to a specific class of decision makers. To provide reliable accounting information to different users, and. Usefulness of the Information. Chapter 2 Accounting and accounting information Accounting: “the fairest invention of the human mind.” (Goethe) 2.1 Introduction As intimated by its title, this thesis proposes the inclusion of information on flexibility as a means of enhancing the accounting information systems of business organisations. Comprehensibility. Comparison is a very important part of financial information as it helps the users of accounting information to differentiate, analyze, improve, and take important decisions. Characteristics of Accounting Information. To meet the statutory reporting needs of an organization, 2. Characteristic Features of an Good Accounting Information System. Reliability: Reliability is described as one of the two primary qualities (relevance and reliability) that … Example of Comparability– QoQ (Quarter on Quarter) & YoY (Year on Year comparisons) should b… is the measurement of qualitative characteristics of accounting information and explain its impact on earnings quality and profitability of Islamic banks in the GCC.
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