What are the quality characteristics of accounting information?

The characteristics of accounting information quality mainly include reliability, relevance, understandability, comparability, substance over form, importance, prudence and timeliness.

Reliability requires enterprises to confirm, measure and report on the basis of actual transactions or events, truthfully reflect the accounting elements required for review, confirmation and measurement, that is, other relevant information, and ensure the authenticity, reliability and completeness of accounting information.

Relevance requires that the accounting information provided by enterprises should be related to the economic decision-making needs of investors and other users of financial reports, which is helpful for investors and other users of financial reports to evaluate or predict the past, present or future situation of enterprises.

Understandability requires that the accounting information provided by enterprises should be clear and easy for investors and other users of financial reports to understand and use.

Comparability requires that the accounting information provided by enterprises should be comparable to each other, including comparability of the same enterprise in different periods and comparability of different enterprises in the same accounting period.

Substance is more important than form, which requires enterprises to make accounting confirmation, measurement and report according to the economic essence of transactions or events, rather than just based on the legal form of transactions or events.

Importance requires that the accounting information provided by an enterprise should reflect all important transactions or events related to the financial status, operating results and cash flow of the enterprise.

Prudence requires enterprises to be cautious in accounting confirmation, measurement and reporting of transactions or events, and not to overestimate assets or income or underestimate liabilities or expenses.

Timeliness requires enterprises to confirm, measure and report the transactions or events that have occurred in time, and shall not be advanced or delayed.

Importance of accounting information

Accounting information is mainly used to process the data generated by the value movement in the process of enterprise operation, and according to the prescribed accounting system, regulations, methods and procedures, it is processed into financial information and other economic information that is helpful for decision-making. Specifically, accounting information refers to the economic information generated by accounting data processing, which is needed by accounting management and enterprise management. It includes: financial information that reflects what happened in the past, that is, information about the acquisition, distribution and use of funds, such as balance sheets.

Accounting information is an important foundation for the effective operation of social economy, and authenticity is the most basic requirement for the quality of accounting information. The effective operation of social economy requires that accounting information be consistent with the objective facts it reflects. Some serious problems in China's current economic operation, such as the loss of state-owned assets, underdeveloped securities market, high social transaction costs, difficult financing for enterprises, etc., are largely related to the distortion of enterprise accounting information.