Enhancing Qualities
Results when different companies use the same accounting principles
Comparability
Includes the financial statements, includes a management and analysis section, notes to the financial statements, and an independent auditor's report
Independent observers, using the same methods, obtain similar results
Verifiable
Presents management's views on the company's ability to pay near term obligations, its ability to fund operations and expansion, and its results of operations
Management Discussion and Analysis
Information is presented in a clear and concise fashion so that reasonably informed users of that information can interpret it and comprehend its meaning
Understandability
Clarify the financial statements and provide additional detail, such as descriptions of significant accounting policies
Notes to the financial statements
A company uses the same accounting principles and methods from year to year
Consistency
prepared by an independent outside auditor
Auditor's report
Information must be available to decision makers before it loses its capacity to influence decisions
Timely
Unqualified, qualified, adverse, disclaimer