Useful Financial Information

The objective of financial reporting is to provide financial information that is useful to its primary users.

Useful FS fundamental qualitative characteristics:

• Relevance 
• Predictive value
• Confirming value
• Materiality
• Faithful Representation
• Completeness
• Neutrality
• Freedom from error

Enhancing Characteristics:

• Comparability
• Verifiability
• Timeliness
• Understandability

Constraints:

• Cost/Benefit

Reference: Statements of Financial Accounting Concepts (SFAC) No. 8