In qualitative characteristics of accounting there are two fundamental

characteristic and four enhancement characteristic. First we have

relevance and faithful representation. Relevance is linked with
understandable information that is timely, useful, has predictive value, and
can be useful in making economic decisions. Faithful representation, when
financial reports and economic phenomena represents. It is fundamental in
making financial reports that aid economic decision makers that should be
complete, neutral and free from error.

The enhancing characteristics are Verifiability, Timeliness,

Understandability, and Comparability. Not only these are enhancing it is
also part of the important characteristics. Verifiability, when an information
is reproduced the same data and assumptions should be balanced.
Timeliness, is when how quick the information is available. It matters when
the information is available because you must have a data to be presented
when decision makers will look for it. Understandability, the data should be
understandable and precise when presented or submitted to the decision
makers.

An accountant should not use a lot of jargon in disguising

underperformance. Comparability, when standards and policies should be
applied from one period to another. Standards and policies should be
comparable from your financial statement and to other companies. In
addition, there is confirmatory and predictive value. Confirmatory value,
focuses on past events while the predictive value focuses on, the possible
future events.

Qualitative characteristics of accounting are important because, they help

assist decision maker and the ones who benefit in analyzing the financial
reports.