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Comparability and understandability are examples of enhancing qualitative characteristics.
Qualitative Characteristics
The attributes that make the information provided in financial statements useful to users, such as relevance and reliability.
Comparability
The quality that allows users to analyze trends in financial data across different time periods within a company or compare financial data across companies.
Understandability
Understandability in accounting means financial information should be presented clearly and concisely, making it easy for users to comprehend.
- Understand the principles and characteristics that guide financial reporting.
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Learning Objectives
- Understand the principles and characteristics that guide financial reporting.
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