What is the quality of accounting information?

The quality requirement of accounting information is the basic requirement for the quality of accounting information provided by enterprise financial reports, and it is the basic feature that makes the accounting information provided by financial reports useful for investors and other users to make decisions. It mainly includes reliability, relevance, clarity, comparability, substance over form, importance, prudence and timeliness.

For example, at the end of 20×7, a company found that its sales were shrinking and it could not achieve the sales revenue target set at the beginning of the year. However, considering that the company's sales may increase significantly before and after the Spring Festival of 20×8, the company predicted the sales of inventory goods in advance, and made a number of inventory delivery vouchers at the end of 20×7 to confirm the realization of sales revenue. The company's handling is not based on its actual transaction, but a fictitious transaction, which violates the reliability principle of accounting information quality requirements and the provisions of China's accounting law.

Another example is that although an enterprise sells goods according to a sales contract and signs an after-sale repurchase agreement, it has realized its income in a legal form. However, if the enterprise fails to transfer the main risks and rewards of the ownership of goods to the buyer and does not meet the conditions for income recognition, it should not recognize the sales income even if it has signed a sales contract or delivered the goods to the buyer.