Explain the qualitative Characteristics of accounting information. You are a senior accountant of XYZ Ltd. What steps would you take to make your company's financial statements understandable and decision useful?

Following are the qualitative characteristics of accounting information:

• Reliability – It should be completely free from personal bias and should be supported by documents.
• Relevance – Accounting information should be useful i.e. unimportant information should be avoided on the basis of principle of materiality.
• Understandability – Accounting information should be clear, brief, exact and easily understandable by the management and other stakeholders.
• Comparability – To make the accounting information comparable, consistent accounting methods should be followed. This helps in making proper decisions and formulating future plans.