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The following selected items relate to the qualitative characteristics of useful information: 1. Comparability 2. Materiality 3. Neutrality 4. Timeliness 5. Faithful representation 6. Feedback
The following selected items relate to the qualitative characteristics of useful information: 1. Comparability 2. Materiality 3. Neutrality 4. Timeliness 5. Faithful representation 6. Feedback value 7. Predictive value 8. Consistency 9. Understandability 10. Verifiability 11. Completeness Match these qualitative characteristics to the following statements. (a) Financial information must be available to decision makers before the information loses its ability to influence their decisions. (b) Financial information provides a basis to evaluate decisions made in the past. (C) Financial information cannot be selected, prepared, or presented to favour one set of interested users over another. (d) Financial information reports the economic substance of a transaction, not its legal form. (e) Financial information helps reduce uncertainty about the future. (f) Financial information must be provided in such a way that knowledgeable and independent people agree that it faithfully represents the economic reality of the transaction or event. (9) Financial information about one company can be evaluated in relation to financial information from another company. (h) Financial information is provided in a way that enables reasonably informed users to interpret and comprehend the meaning of the information provided in the financial statements. (1) Financial information in a company is prepared using the same principles and methods year after year. 6) Financial information that is insignificant and not likely to influence a decision does not need to be disclosed. (k) Financial information includes all information necessary to show the economic reality of the transaction
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