What are the enhancing qualities of accounting information?

Discuss the enhancing qualities including comparability, consistency, verifiability, timeliness, and understandability. Accounting information is general purpose and should be designed to serve the information needs of all types of interested parties. The following tables illustrates the qualitative characteristics of accounting information

Why are qualitative characteristics of accounting information important?

The qualitative characteristics of accounting information are important because they make it easier for both company management and investors to utilize a company’s financial statements to make well-informed decisions. Thank you for reading CFI’s guide on Qualitative Characteristics of Accounting Information.

What qualities make accounting useful?

The following qualities help to make accounting useful. Information should be timely and bear on the decision-making process by possessing predictive or confirmatory (feedback) value. Information must be truthful; complete, neutral, and free from error.