Chapter 1, The Objective of General Purpose Financial Reporting, and Chapter 3, Qualitative Characteristics of Useful Financial Information. The demand for accounting information by investors, lenders Top Banks in the USA According to the US Federal Deposit Insurance Corporation, there were 6,799 FDIC-insured commercial banks in the USA as of February 2014. Information must be less costly than the value it provides; Improving information management in an organisation is a simple matter of addressing the activities involved in producing the information that impact the 10 criteria above. 6 For information to be useful in decision making, the organization must improve the quality of its business information. ADVERTISEMENTS: Some of the main characteristic features of an accounting information system are as follows: Accounting information system has been chosen for describing the steps in the process of system analysis and design because this system is one of the most commonly used information systems in any enterprise. What are the Qualitative Characteristics of Accounting Information? PDF | One difficulty faced by students on many information management courses is the lack of any attempt to teach concepts of information. Database . Any economic transaction processing involves collecting, categorizing, summing and analyzing the data. Four principal qualitative characteristics must be met for the accounting information to be useful in the management system: understandability, relevance, reliability and compatibility of information. ... Information has different characteristics … 4. Information needs to be of high quality to be useful and accurate. Accounting informa­tion systems are perhaps among the […] You need to ensure that the information collected is from a trusty and reliable source that you know is 100% accurate. To improve the quality of information, it must have certain characteristics and meet certain criteria. The information that is accessed is deemed reliable. Below we’ll discuss more characteristics of good information in detail… Valid Valid information is information that is accurate and reliable so that no mistakes or errors can be made. Classically, in introductory texts on Information Systems, information is considered to be the output from an information system, with data (raw, unprocessed, collected “facts”) being input. Statement of Financial Accounting Concepts No. The characteristics of good information include accuracy, reliability and accessibility to name a few. The information that is input into a data base is presumed to be perfect as well as accurate. The qualitative characteristics of information included in GPFRs are defined as the attrib-utes that make that information useful to users for accountability purposes and for making various decisions. Without certain characteristics, information can be overloaded, erroneous and misleading. There are at least three problems concerning these attributes. The first of This is a very simplistic view and is often qualified by saying that the information only becomes useful if it is in context and is meaningful. Conceptual Framework for Financial Reporting . 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