Financial statements are one form of responsibility for all financial transactions conducted by a company. Therefore, the information displayed in financial statements must meet qualitative characteristics. Characteristics of Financial Statements are all normative measures that must be realized in an accounting information system to meet the objectives of financial statements. The characteristics of financial statements are characteristic in making information in financial statements that are useful for users in making economic value decisions. Additionally, you also need accurate bookkeeping results to make better business decisions. Therefore, we recommend you call the best BAS Agent Rydalmere to help your company.
As for some of the characteristics of the financial statements that must be met in making the report are as follows:
Financial statements are said to be relevant if the information presented in financial statements can influence users’ economic decisions, which helps them evaluate past and present events, and can correct the results of evaluations in the past.
2. It can be understood
The quality that is important in making financial statement analysis is that it has characteristics that can be understood and easily understood by each user. For this purpose, users are assumed to have adequate knowledge of economic and business activities, accounting, and the willingness to study the information with reasonable perseverance. If the user of financial statements can understand all the information presented, then the information can be said to be understood and understood.
3. It can be compared
The information contained in the financial statements will be more useful if it can be compared with the financial statements of the previous period or the financial statements of other entities in general. This characteristic aims to compare the company’s financial statements between periods, to identify trends in financial position and performance and to evaluate the financial position, performance and changes in financial position in relative terms or to compare financial statements with past periods.
Financial statements are said to be reliable if the information presented in the financial statements is free and not bound by misleading notions and material errors, presents all the facts clearly and honestly and the information presented has been verified.