Qualitative Characteristics

Question 1

Reliability

Answer 1

States that reports should contain information that is free from bias, and thus can be relied upon for its accuracy.

Question 2

Comparability

Answer 2

States that reports should be comparable over time, and between different companies, through the use of consistent accounting procedures.

Question 3

Understandability

Answer 3

States that reports should be presented in a manner that makes it easy for the user to understand their meaning.

Question 4

Relevance

Answer 4

States that reports should include information that is useful for decision making, and exclude information that is not.