Qualitative Characteristics

Question 1

Timeliness

Answer 1

Information is only valuable if it can be
provided in a timely manner

Question 2

Understandability

Answer 2

Information must be presented in a way
that people with a reasonable knowledge of a business can understand it.

Question 3

Relevance

Answer 3

Information is only relevant if it has the potential to affect the decision making of users of the report.

Question 4

Faithful Representation

Answer 4

Information must faithfully represent the economic events being reported.

Question 5

Comparability

Answer 5

Consistent accounting methods should be used so that differences in accounting reports can be identified and understood.

Question 6

Verifiability

Answer 6

Information should be presented accurately and be able to be supported by evidence such as documents.

Question 7

Qualitative Characteristics (TURFCV Acronym)

Answer 7

T imeliness
U nderstandability
R elevance
F aithful Representation
C omparability
V erifiability