Qualitative Characteristics In FASB Statement of Concepts No. 2, several qualitative characteristics of useful accounting information were identified. The following is a list of these qualities as well as a list of statements describing the qualities.
B. Decision usefulness
E. Predictive value
F. Feedback value
G. Timeliness faithfulness
1. Ability of measurers to form a consensus that the selected accounting method has been used without error or bias.
2. Making information available to decision makers before it loses its capacity to influence decisions.
3. Capacity to make a difference in a decision.
4. Overall qualitative characteristic.
5. Absence of bias intended to influence behavior in a particular direction.
6. Reasonably free from error and bias.
7. Helps decision makers forecast correctly.
9. Interactive quality; helps explain similarities and differences between two sets of facts.
10. Quantitative “threshold” constraint.
11. Conformity from period to period.
12. Helps decision makers confirm or correct prior expectations.
Place the appropriate letter identifying each quality on the line in front of the statement describing the quality.