Corporative Financial Reporting –

Qualitative Characteristics
Presented By Soniya Asrani
Enrollment : 202324400002 (BEPF)
Meaning of Corporative Financial
Reporting
 Corporative Financial Reporting involves the disclosure of a company’s
financial performance and Financial position.
 It includes Financial Statements like Income statement, Balance sheet and
cash flow Statement.
 It involves the communication of a company’s financial information to
Investors, Creditors, Debt providers & Government.
Qualitative Characteristics of
Corporative Financial Reporting
 Reliability
 Understandability
 Comparability
 Consistency
 Relevance
Reliability
Financial Information should be Trustworthy,
Free from Error, Must be Verifiable,
Faithfully Represents the economic transaction

Understandability

Financial Information should be presented in simple and Logical

manner.
Easily understood by their Users
Comparability

Users should be able to compare information with different

entities or different periods

Consistency

Similar transaction should be accounted for using the same

method across different period.

Relevance
Financial Report must be available on time, help in prediction
and feedback
Conclusion

 This Qualitative characteristics collectively contribute to the

usefulness and credibility of corporate Financial report, helping users
to make decisions.
THANK YOU