Qualitative Characteristics of Accounting Information
• Reliability: Reliability implies that the information must be free from material error and personal bias.
• Relevance: Accounting information must be relevant to the decision-making requirements of the users.
• Understandability: Information should be disclosed in financial statements in such a manner that these are easily understandable.
• Comparability: Both intra-firm and inter-firm comparison must be possible over different
time periods.
• Reliability: Reliability implies that the information must be free from material error and personal bias.
• Relevance: Accounting information must be relevant to the decision-making requirements of the users.
• Understandability: Information should be disclosed in financial statements in such a manner that these are easily understandable.
• Comparability: Both intra-firm and inter-firm comparison must be possible over different
time periods.