Financial Statements
- Cash Flow Statement
- Income Statement
- Balance Sheet
Todo
Covered in week 8.
Qualitative Characteristics
Qualitative characteristics are the attributes that make financial information useful to users.
Fundamental Qualitative Characteristics
- Relevance: Financial information is relevant if it can influence the economic decisions of users.
- Faithful Representation: Financial information must faithfully represent the economic phenomena it purports to represent.
Enhancing Qualitative Characteristics
- Verifiability: Different knowledgeable and independent observers can reach a consensus that information is faithfully represented.
- Comparability: Users can identify and understand similarities and differences between items.
- Timeliness: Information is available to decision-makers in time to influence their decisions.
- Understandability: Information is presented clearly and concisely so that users can comprehend it.