Consistency 6. An experienced accountant will prepare financial reports that provide the specific information needed by management to reach a decision. That is, the accountant does not just issue the same boilerplate reports, month after month. Accounting information is the collective data of business transactions. Main Guiding Principles … Accounting provides businesses with useful and relevant information. Relevance: Qualitative Characteristics of Accounting Information Financial reporting. The accountant should record and report on accounting transactions from a neutral perspective, without any bias that would give the reader an incorrect impression about the financial position, results, or cash flows of a business. These users can be the owner of the business, employees, investors, and government. Substance over Form. 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Characteristic # 1. Relevant accounting information makes a difference in a decision making process and might have the following characteristics:. The more accurate the information, the more the business can base business decisions on the information. Reliability and completeness of information. These users can be the owner of the business, employees, investors, and government. Timeliness 3. A system's secondary qualitative characteristics make its accurate, relevant data easier to use. The primary objective of financial reporting is to provide useful information for making business decisions. Verifiability 10. Conservatism 11. Users of Accounting Information may be categorized into Internal Users and External Users. Comparability 5. The usefulness of this information is presented in terms of its informative content and timeliness. Characteristics of the Accounting Information Systems just from $13,9 / page. Besides the above two fundamental characteristics, there are other qualitative characteristics accounting information or features of accounting information. The accountant should prepare reports that are tailored to the knowledge of the reader. Understandability 4. It provides the data for analysis to different users for their further decision-making. Timeliness 9. In order to be useful to a user, accounting information should have the following characteristics: Prepared objectively . Matches reader knowledge. The main characteristic features of accounting information sys­tems are: (a) Accounting information system deals with transactions which are of financial nature and can be expressed in terms of money. Neutrality 7. The following points highlight the top eleven characteristics of accounting information. The reports generated by the system are of use both internally within the company and externally for other stakeholders and users. 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