Characteristics Of Useful Information That Is Presented In A Useful And Intelligible Format

False information may lead to wrong inappropriate actions.

Characteristics of useful information that is presented in a useful and intelligible format. For information to be useful to the decision maker it must have certain characteristics and meet certain criteria. In addition all organ. Since information is already in a summarized form it must be understood by the receiver so that he will interpret it correctly. The framework 2010 identifies two fundamental qualitative characteristics of useful financial information.

The usefulness of financial information is enhanced if it is comparable verifiable timely and understandable. Presented in a useful and intelligible format. The accountant should record and report on accounting transactions from a neutral perspective without any bias that would give the reader an incorrect impression about the financial position results or cash flows of a business. Financial information contained in the financial statements has several qualities that make it useful.

Finally the information needs to be complete. For information to be effective it should ensure that it is accurate reliable. Information is encoded in several ways for safe communication between 2 parties. Some of the characteristics of good information are discussed as follows.

Some of the important characteristics of useful information are discussed below. Is presented in a useful and intelligible format it is easy for shareholders and prospective investors to understand. Characteristics of useful information. In order to be useful to a user accounting information should have the following characteristics.

Get a verified writer to help you with short essays major problems in american history. By having information that does not omit anything it will provide management shareholders and prospective investors with the necessary information to make well informed decisions. Available to users when they need it and in a formft they can use. Financial information is useful when it is relevant and represents faithfully what it purports to represent.

Two independent knowledgeable people produce the same information. Relevance and faithful representation. Presented in a useful and intelligible format. I two independent knowledgeable people produce ih urn information.

For example if an organisation is supplied with information regarding the costs of supplying a fleet of cars for the sales force and servicing and maintenance costs are not included then a costing based on the information supplied will be considerably. Otherwise it may not be useful as the basis for making a decision. Characteristics of useful information. Information has to be provided in time to make a decision in format that can be understood by the audience understandable ineligible presented in a useful and intelligible format.