Qualitative characteristics of accounting information

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.