CHARACTERISTICS OF

USEFUL INFORMATION
AND THE CLOUD BASED
ACCOUNTING SYSTEM

GROUP 2
By: Boaquiña, Bonite, Calagui, Cañete, and Casio
Characteristic of Useful
Information
Fundamental Qualities

Enhancing Qualities
Characteristic of Useful
Information
Relevance
Information is relevant if it can affect the
decisions of users. Without this trait,
information is deemed irrelevant.
Relevant information has the following
aspects: Predictive value, Confirmatory
value and Materiality.

Fundamentals Faithful Presentation

Information is faithfully represented if it
is factual, meaning it represents the
actual effects of events that have taken
place. For example, if a business make
total sales of P1M, it should report that
amount in its financial statements – no
more, no less!
Faithfully represented information has
the following aspects: Completeness,
neutrality, and free from error.
Characteristic of Useful
Information
Comparability
Verifiability
Information is comparable if
it can help users identify Information is verifiable
similarities and differences if different users could
between different sets of reach a general
information. Unlike the other
qualitative characteristics,
agreement as to what
comparability does not relate the information intends
only one item because a to represent.
comparison requires at least
two items.

Enhancing
Timelines Understandability

Information is timely if Information is understandable if

it is available to users it is presented in a clear and
concise manner. On the other
in time to be able to
hand, users are expected to
influence their have a reasonable knowledge
decisions. of business activities and a
willingness to analyze the
information diligently.
Relevance
Information is relevant if it can affect the decisions of users.
IASB (2008) defines relevance as the capability of making a difference in the decisions made
by users in their capacity as capital providers.

A relevant financial report should include both financial and non-financial information.
Such information should be able to provide insight into business opportunities, risk as well as
possible future scenario for the company (Jonas and Blanchet, 2000).
 We conclude that Zipbooks has the
characteristics of useful financial information. The
software is very easy to use and it is free. It is
commendable by those users who already use it.

CONCLUSION
THANK YOU
for watching!