Acca financial Accounting (FA) Study Text ac ca (FA)

5 Qualitative 

characteristics 

Introduction 

Qualitative characteristics are the attributes that make information provided in 

financial statements useful to others. 

The Framework splits qualitative characteristics into two categories: 

(i) 

Fundamental qualitative characteristics 

– Relevance 

– Faithful 

representation 

(ii)  Enhancing qualitative characteristics 

– Comparability 

– Verifiability 

– Timeliness 

– Understandability 

 

 

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Chapter 1 

KAPLAN PUBLISHING

 

11 

 

Fundamental qualitative characteristics 

 

Relevance 

Information is relevant if: 

•

 

it has the ability to influence the economic decisions of users, and 

•

 

is provided in time to influence those decisions. 

Materiality has a direct impact on the relevance of information.