BOX 5116, NORWALK, CONNECTICUT 06856-5116 For Analytical purposes, Qualitative characteristics can … The demand for accounting information by investors, lenders Top Banks in the USA According to the US Federal Deposit Insurance Corporation, there were 6,799 FDIC-insured commercial banks in the USA as of February 2014. revised as of September 2010 However, Para[F QC33] of Conceptual Framework says, enhancing qualitative characteristics, either individually or in group, render information decision useful if that information is irrelevant or not represented faithfully. Qualitative Characteristics of Financial Information Financial information has several qualities that make it useful. Assumptions for financial statements: Accrual Basis, Going Concern. Research Gap: There is hardly any study on external users’ perception about the qualitative characteristics of financial reporting in Bangladesh. understandability, comparability, verifiability and timeliness) as defined in the ED (IASB, 2008). Hence, it is important that the financial statements show corresponding information for the preceding period(s).The four principal qualitative characteristics are … They should therefore abide by a set of underlying assumptions and characteristics. My video lectures about qualitative characteristics of conceptual framework such as completeness, comparability, consistency and verification are covered in my financial accounting, intermediate accounting and CPA lessons. 2 CON2 Status Page Qualitative Characteristics of Accounting Information May 1980 Financial Accounting Standards Board of the Financial Accounting Foundation 401 MERRITT 7, P.O. l Elements of Financial Statements, Statement of Financial Accounting Concepts No.6 (CON 6). 4. Conceptual Framework Outline A. 2009 [11]; Nobes & Stadler 2014 [12]) and, in our opinion, efficiently emphasized in the Statement of Financial Accounting Concepts No. Qualitative characteristics are the tributes that make the information provided in financial statements useful to users. Characteristics: Relevance, Faithful Representation, Comparability, Understandability, Verifiability, … Com let us take a look. What are the Qualitative Characteristics of Accounting Information? In order for the financial statements to be useful to the stakeholders of a business they must embody certain qualitative characteristics. Under the Conceptual Framework for Financial Reporting, qualitative characteristics are classified into fundamental qualitative characteristics and enhancing qualitative characteristics. financial statements should be presented in order to ensure comparability both with the entity’s own financial statements of previous periods and with the financial statements of other entities. Actually there are four qualitative characteristics of financial statements. Qualitative characteristics are the qualities or attributes that make financial accounting information useful to the users. A 21-item index constructed allows us to examine to what extent financial reports meet each of the qualitative characteristics … Substance over form. Qualitative characteristics represent those attributes that make the infor-mation provided in financial statements useful to its users. Prudence. users of financial statements (that would be the focus of qualitative characteristics of the Conceptual Framework of Financial Reporting in 2010), and to the appreciation of the better possibilities in terms of information support to users of financial statements. Financial statements should be useful to readers. financial statements should meet certain qualitative criteria. Financial statement discussion and analysis shall include information that possesses the qualitative characteristics of general purpose financial reports identified in Appendix A of IPSAS 1. CON 6 replaces CON 3, Elements of Financial Statements of Business Enterprises. The dependence of users’ economic decision on financial statements is crucial and if the financial information is not accurate or is not true and fair then users may end up making wrong decisions. 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