CIMA BA3 Syllabus A. ACCOUNTING PRINCIPLES, CONCEPTS AND REGULATIONS - Qualitative characteristics of financial statements - Notes ^{10 / 22}

Qualitative characteristics of financial statements

All the user groups, both internal and external to the organisation, require the information provided to be useful. 

Information should:

• enable its recipient to make effective decisions.

• be adequate for taking effective action to control the organisation or provide valuable details relating to its environment.

• be compatible with the responsibilities and needs of its recipient.

• be produced at optimum cost.

• be easily understood by its recipient.

• be timely.

• be sufficiently accurate and precise for the purpose of its provision.