Characteristics Of Financial Statements

There are several characteristics of financial statements showing the financial statements must be fulfilled so as to be useful in decision making for all users.  hhhmm,,, the new five-dawn hours I was awake, at least to finish the post because he had not ngeposting so this hand might be stiff. Ok friend Smart we continue our lesson, we will discuss the following characteristics of the financial statements. Immediately read ..
The characteristics described in FASB Statement of Consepts:
1. Users of Financial Statements and Their Characteristics

information that the user needs not be the same as the other users of the information. User

financial statements have educational background, interests and knowledge different. Therefore Drafting financial statements must be able to pay attention to these aspects so as to meet the needs of all users optimally.
2. Information relevance (relevance)
The information presented should be bound by the decisions made by users of financial statements. There are three things that must be met in order for the information contained in the financial statements can be said to have relevance, namely:
a) Feedback value, which is an information have an influence in decision-making.
b) Predictive value, ie information that can assist in making predictions. Past information is used as a benchmark in forecasting for the future.
c) Timeliness of the issue of the availability of information in the time required.
3. Trustworthy (reability)
There are three elements that must be met in order for a reliable information, namely:
a) the verifiability of information presented can be tested by others using the same standards and expertise with the author of that information.
b) Neutrality is free of irregularities or information does not take sides on the one hand, users of such information, so that financial statements can be useful for all parties.
c) Representational Faithfuiness the compatibility between the information presented with the reality.
4. Power of Appeals (comparability)
The financial statements will be more useful when it can be compared with the financial statements of other similar companies, or financial statements themselves in different accounting periods. The financial statements can be compared if there is consistency in the use of accounting methods used in accounting estimates yielding and using the same accounting period.
Smart  friend ok so first lesson we should not forget this day still look forward to new lessons .....