Qualitive characteristic of financial statement

The qualitative characteristics of financial statements are

important to ensure that users can rely on the financial
information provided to make sound economic decisions. The
three main qualitative characteristics are relevance,
comparability, understandability, and timeliness.
 Relevance
Relevance refers to the ability
of financial information to
have an impact on the choices
made by users acting as
capital providers. Financial
information is considered
relevant when it is both
confirming and predictive in
nature.
comparability
Comparability ensures that
financial information presented
in financial statements can be
compared across different
periods and between different
companies. Financial statements
should be presented in a
consistent manner to enable
users to make meaningful
comparisons and evaluations.
 understandability
understandability refers to
the ability of financial
information to be easily
comprehended by users who
have reasonable knowledge
of business and economic
activities.
Timeliness
Timeliness is a qualitative
characteristic that ensures that
financial information is made
available to users in a timely
manner. Being timely implies
that users should receive the
financial data as soon as
feasible following the
conclusion of the reporting
period.
THE USERS OF FINANCIAL STATEMENT
INFORMATION:

A wide range of users, including external stakeholders such as

investors, creditors, suppliers, customers, regulatory authorities,
and internal stakeholders such as top-level executives and
departmental managers, require financial information to assess
an organization's financial performance, profitability, and
potential for future growth and success. These users can be
broadly classified into two categories: internal users
and external users.
 Internal users External user

External users are people or

organizations who are not
Internal users are people or affiliated with the organization but
groups who are actively who rely on a company's financial
involved in the management statements when making
and functioning of an decisions. Investors, creditors,
organization, such as regulatory agencies, clients,
employees, managers, suppliers, and other stakeholders
executives, directors, and are a few examples of these
shareholders. consumers.
PILLAR OF FINANCIAL STATEMENTS:

A wide range of users, including external stakeholders such as

investors, creditors, suppliers, customers, regulatory authorities,
and internal stakeholders such as top-level executives and
departmental managers, require financial information to assess
an organization's financial performance, profitability, and
potential for future growth and success. These users can be
broadly classified into two categories: internal users
and external users.
 PILLAR OF FINANCIAL STATEMENTS:

balance sheet:
reports a company's cash flow statement:
Income statement: assets, liabilities, and reports cash sources
which are the pillars of equity at a specific and uses from
financial reporting and point in time, operating, investing,
provide valuable allowing investors, and financing
information for creditors, and other activities, enabling
stakeholders to assess a consumers to assess a investors, creditors,
company's financial status company's financial and other stakeholders
and performance. health by to evaluate how well a
understanding its firm generates and
solvency, leverage, manages cash flow.
and liquidity.
Thank you