The qualitative characteristics of financial report preparation - Essay Example

Only on StudentShare

Extract of sample
The qualitative characteristics of financial report preparation

This essay discusses that qualitative characteristics influence the financial information’s effect. The users of the financial information rely on the qualitative characteristics of the financial statements for their decision making activities. The creditors use the financial statements as one of the tools for deciding whether to grant loans or credit terms to the credit applicant. Financial statement indicating the company generated a profit trend for the past two years will persuade the creditors to grant the loans or credit applications. The net profit portion of the financial statements indicates the company will be able to pay its maturing loan and credit obligations on time. On the other hand, the creditors will be discouraged to approve the credit or loan application of a company having a net loss financial picture. The net loss financial picture indicates a strong probability that the company may close shop in the next few years. The credit or loan applicant may not be able to comply with its duty to pay its loans or credits when the maturity dates crop up. In addition, the customers use the financial statements as one of the major tools for deciding whether to grant loans or credit terms to the credit applicant. The customers use the financial statements to determine if the company will stay long enough to supply their wants, needs, and caprices. A financial statement indicating a loss will persuade the client to start looking for other competitor suppliers. ...Show more


The researcher focuses on the qualitative characteristics of financial report preparation. The research centers on materiality, prudence, reliability, and relevance characteristics. The financial information must compulsorily abide by established qualitative characteristics…
Author : ginomclaughlin
The qualitative characteristics of financial report preparation essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The qualitative characteristics of financial report preparation"
with a personal 20% discount.
Grab the best paper

Related Essays

Qualitative Characteristics of Financial Information
Financial reporting conceptual framework is a coherent system of concepts which underlie the financial information reporting. The objective or purpose of financial reporting is to present the information pertaining to the reporting organization, which is useful to investors and other capital providers in making decisions.
8 pages (2000 words) Essay
The Qualitative Characteristics of Relevance and Reliability
It shows the financial state of a company and helps in giving a clear picture of its financial affairs. There are many external users of financial statements of a company but the company itself can also use financial statements to judge and compare its own performance against the performance of other like companies.
14 pages (3500 words) Essay
Qualitative research report
The qualitative interviews investigate the attitudes which these students express towards various aspects of life. The title of the research is “Qualitative Research Report”. It is an appropriate topic because it discusses the qualitative aspects of student life in the campus including attitude, emotions, likes and dislikes.
8 pages (2000 words) Essay
Financial Statements Master Essay
It will further elaborate how accounting for inventories will change according to these concepts/assumptions. "The board of the International Accounting Standards Committee (IASC), a 13-member (all part-time) organization representing professional accounting groups (e.g., the AICPA) from member countries, promulgated IAS beginning in the mid-1970s.
12 pages (3000 words) Essay
Preparation of detailed strategic report
regulatory authority and security of company assets due to some extent of anti-west feelings. Vodafone Australia operates a GSM digital mobile network that covers 93 per cent of the Australian
7 pages (1750 words) Essay
Qualitative Report
Marriage of Princess Diana and heir apparent Prince Charles was a fairy tale wedding of the twentieth century. The eighteen years saga of their marriage was vastly
8 pages (2000 words) Essay
Interpret the result in your report. Also, your report and model (where possible) should analyse the following-
orting the performance of a company, simplicity and understandability of the documents must be ensured (Wahlen, Bradshaw, Baginski, & Stickney, 2011). In their reporting, the two firms have ensured that they give a complete set of information bearing in consideration the detail
1 pages (250 words) Essay
The qualitative characteristics of Relevance and Reliability which are identified in the IASB Framework for the Preparation and Presentation of Financial Statements are the key attributes that make financial information useful to the various users of fina
IASB has set standards for financial reporting which ensure that the reporting is done according to the set principles by all the companies. This helps the users of financial
14 pages (3500 words) Essay
The IASB Conceptual Framework for Financial Reporting (the Conceptual Framework) sets out the concepts that underlie the preparation and presentation of financial statements. According to Hines (1980), the ontological assumption underpinning the
This also increased the risk of development of mutually inconsistent standards that violated the main objective behind preparation of financial statements. To meet the need of robustness and consistency in the financial statements, the conceptual framework was
8 pages (2000 words) Essay
Qualitative data analysis report
The themes are associated with Terms and Conditions. The themes examine trust, loyalty, privacy and security, and issue of Terms and Condition such as language and length. The main conclusion is that, loyalty and trust influences a person to accept
7 pages (1750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email