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QualitativeCharacteristicsofAccountingInformation <br />Thefollowingqualitativecharacteristicsofaccountinginformationwillbeincorporatedinall <br />reportsthatareprepared: <br />BiasBiasinmeasurementisthetendencyofameasuretofallmoreoftenononesidethantheotherof <br />• <br />whatitrepresentsinsteadofbeingequallylikelytofalloneitherside.Biasinaccountingmeasures <br />meansatendencytobeconsistentlytoohighortoolow.Financialreportingwillstrivetoeliminatebias <br />inaccountingmeasures. <br />ComparabilityThequalityofinformationthatenablesuserstoidentifysimilaritiesinanddifferences <br />• <br />betweentwosetsofeconomicphenomena. <br />CompletenessTheinclusioninreportedinformationofeverythingmaterialthatisnecessaryforfaithful <br />• <br />representation. <br />ConservatismAprudentreactiontouncertaintytotrytoinsurethatuncertaintyandrisksinherentin <br />• <br />financialsituationsareadequatelyconsidered <br />ConsistencyConformityfromperiodtoperiodwithunchangingpoliciesandprocedures. <br />• <br />FeedbackValueThequalityofinformationthatenablesuserstoconfirmorcorrectpriorexpectations. <br />• <br />MaterialityTI1emagnitudeofanomissionormisstatementofaccountinginformationthat,inlightof <br />• <br />surroundingcircumstances,makesitprobablethatthejudgmentofareasonablepersonrelyingonthe <br />informationwouldhavebeenchangedorinfluencedbytheomissionormisstatement. <br />NeutralityAbsenceinreportedinformationofbiasintendedtoattainapredeterminedresultorto <br />• <br />induceaparticularmodeofbehavior. <br />PredictiveValueThequalityofinformationthathelpsuserstoincreasethelikelihoodofcorrectly <br />• <br />forecastingtheoutcomeofpastorpresentevents. <br />RelevanceThecapacityofinformationtomakeadifferenceinadecisionbyhelpinguserstoform <br />• <br />predictionsabouttheoutcomesofpast,present,andfutureeventsortoconfirmorcorrectprior <br />expectations. <br />ReliabilityThequalityofinformationthatassuresthatinformationisreasonablyfreefromerrorand <br />• <br />biasandfaithfullyrepresentswhatitpurportstopresent. <br />RepresentationalFaithfulnessCorrespondenceoragreementbetweenameasureordescriptionand <br />• <br />thephenomenonthatitpurportstorepresent(sometimescalledvalidity). <br />TimelinessHavinginformationavailabletoadecisionmakerbeforeitlosesitscapacitytoinfluence <br />• <br />decisions. <br />UnderstandabilityThequalityofinformationthatenablesuserstoperceiveitssignificance. <br />• <br />VerifiabilityTheabilitythroughconsensusamongmeasurerstoinsurethatinformationrepresents <br />• <br />whatitpurportstorepresentorthatthechosenmethodofmeasurementhasbeenusedwithouterror <br />orbias. <br /> <br />