Question

Qualitative characteristics are the attributes that make information provided in financial reports useful to users. State three (3) of the enhancing qualitative characteristics that help to achieve this objective.

Answer 1

Following are the qualitative characteristics that helps to achieve provide financial informations useful to users ;

1. The information must be clear and understandable to the users . This means the information must be clearly presented to the users and add footnotes for additional information.

2. The information must be relevant to the users. Which means any omissions or double entry is avoided to the report. These are misleading all the financial reports. So that it could be avoided from the report.

3. The information must be comparable to the financial report of the previous accounting years. For this purpose the information must be clear. This helps to identify the trends of the financial position.