Accounting Information Carctrestics

every aspect of economic decision making in the modern age relies heavily on information, accounting information is the most important for making economic decision and accounting information can have two characteristics, a qualitative and quantitative characteristics or both of them at the same time. There are several accounting information that have a qualitative characteristic are necessary for it to be useful for decision maker. Because the qualitative characteristics make the accounting information useful for all levels of decision makers for making any economic decision. This essay will discuss how important are the qualitative characteristic in financial reporting for decision making and why this information should be relevant, reliable to be useful for decision makers and what is the ethical issues or disadvantages of non reliable or relevant information and why stakeholders expect reliable and relevant information from any financial report.

The users of financial reports are those people who take economic decision according to the information provided to them in the financial reports or statements and measure the outcome or results of their decisions related to the organization issued them. As US Financial Accounting Standards Board, they categories decision makers who use the financial reporting into investors, government, creditors, directors, partners, owners and potential investors. And this information should be understandable and useful for those who have a reasonable understanding of economic activities and the business. (1980) this means that the financial report must have the primary characteristic relevancy and reliability and secondary characteristic comparability, understandability and materiality .Hutchinson said the main issue of corporate governance responsibility is providing stakeholders with relevant reliable and timely information,(2009,p89) Because its unethical to mislead or fraud or confuse the decision makers by providing them...