Relevance and Reliability

In the stock marketPeople have to predict future operating result This result is relevant for decision makers As predictions have got no base, it cannot be considered reliable

it cannot be considered reliable .Relevance and Reliability In the stock marketPeople have to predict future operating result This result is relevant for decision makers As predictions have got no base.

if double declining method has been preferred it assures thatThis is Highly relevant for the stockholders. it will not be considered consistent . investors and other people As new method has been adopted.Relevance and Consistency In presenting income statement.

Comparability and Consistency To aid comparabilityA new accounting method can be applied For the result of it. one has to trade off consistency as he/she adopted new method .

Relevance and Understandability Due to not understanding relevant informationStockholders may face loses as they could not interpret the given data of that particular company So. the failing of understandability may incur loss for the shareholders .

What Criterion should be used to evaluate trade-offs between information characteristics? .

And the answer is .

Present information which is more useful for decision making .

That¶s all from our presentation .

Any Query ??? .

Thank you .

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