Copyright 10. Then, use these characteristics to define the criteria for high-quality, accurate data. Relevance requires financial information to be related to an economic decision. To be useful, information must be a faithful representation of the economic reality of the events that it is reporting and not just the legal form. Management Information System (MIS): Top 13 Characteristics, 8 General Steps that can be taken to Implement Managing Planned Change. It is one of the important features of information. It should contain all facts & figures as required by the user. The qualitative characteristics of useful accounting information were identified in the FASB and IASB’s Statement of Financial Accounting Concepts No. Characteristics of Decision-Useful Information Companies prepare and present information about their business so that investors and other stakeholders can make well-informed decisions about their financial health and prospects. The simpleness & easiness of information is one of its best quality. The information should be counted on to be trustworthy. The information that is input into a data base is presumed to be perfect as well as accurate. Disclaimer 9. Accounting Information System: The system which helps to gather, store and process the accounting and financial information of a company is known as accounting information system. The characteristics of good or useful information are as mentioned below: Good information is relevant for its purpose, sufficiently accurate for its purpose, complete enough for the problem, reliable and targeted to the right person. It should not have any arithmetical and grammatical errors. Degrees of reliability must be recognized. Inadequate or incorrect information generally leads to decisions of poor quality. Information collected should be reliable & correct. Commerce Mates is a free resource site that presents a collection of accounting, banking, business management, economics, finance, human resource, investment, marketing, and others. Advances in technology have made information more accessible today than ever before. It should contain all facts & figures as required by the user. Information refers to the collection of facts & figures that has some meaning. 8, Chapter 3, Qualitative Characteristics of Useful Accounting Information. Answer: The seven characteristics of useful information are: relevant, reliable, complete, timely, understandable, verifiable and accessible. Financial information is capable of making a difference in decisions if it has predictive value, confirmatory value, or both. Report a Violation. It should be suitable for the problem for which it is collected. The cost of collection should be within the decided set limit. There are many characteristics that can be seen of useful information. In providing information, the cost benefit analysis is applied as a pervasive constraint.  This can result in delay making decisions, or even make the … Information should be fair and free from bias. Characteristics of Information. Bounded rationality determines the limits of the thinking process which cannot sort out and process large amounts of information. 5.23 Author's subject scope 5.24 Author's intended audience 5.25 Author's sources 5.26 Author's methodology and logic Information should be collected from all the sources & provided for decision making. Submitted by IncludeHelp, on March 21, 2018 . Information should be collected from all the sources & provided for decision making. Information should be relevant to the problem for which it is collected. The information is not desirable if the solution is more costly than the problem. In relation to these enhancing qualities, note: Comparability is the quality of information that enables users to identify similarities in and differences between two sets of economic phenomena. It should be accurate, consistent with facts and verifiable. Information Sources . The sources of information collected should be reliable. Evaluating the Qualitative Characteristics: The above mentioned characteristics (relevance, materiality, understandability, comparability, consistency, reliability, neutrality, timeliness, economic realism) make financial reporting information useful to users. It should be available at the right time to the right person. Timeliness 3. Relevant financial information is capable of making a difference in the decisions made by users. Relevance and faithful representation are the fundamental qualitative characteristics of useful financial information. It refers to the cost involved in the collection of information. 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