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What types of information are useful to users for making decisions about the reporting entity using the general purpose financial report compiled by the reporting entity? And equally important what are the cost constraints on the reporting entity's ability to provide useful financial information?

Understandability ...continue reading "Qualitative characteristics of information in financial statements"

Or more formally: Qualitative Characteristics of Useful Financial Information

What types of information are useful to users for making decisions about the reporting entity using the general purpose financial report compiled by the reporting entity. And equally important what are the cost constraints on the reporting entity's ability to provide useful financial information.

Some information will be more important than other information and some more important information will be easily maintained, collected and reported and other more important information will be expensive to maintain, collect and report, the question being when it is too expensive to maintain, collect and report.

...continue reading "What is Useful Financial Information?"