Relevance and ReliabilityIn the stock market-People have to predict future operating resultThis result is relevant for decision makersAs predictions have got no base, it cannot be considered reliable

Relevance and ReliabilityIn the stock market-People have to predict future operating resultThis result is relevant for decision makersAs predictions have got no base, it cannot be considered reliable

Relevance and ConsistencyIn presenting income statement, if double declining method has been preferred it assures that-This is Highly relevant for the stockholders, investors and other peopleAs new method has been adopted, it will not be considered consistent

Comparability and ConsistencyTo aid comparability-A new accounting method can be appliedFor the result of it, one has to trade off consistency as he/she adopted new method

Relevance and UnderstandabilityDue to not understanding relevant information-Stockholders may face loses as they could not interpret the given data of that particular companySo, the failing of understandability may incur loss for the shareholders

What Criterion should be used to evaluate trade-offs between information characteristics?

Andthe answer is…

“Present information which is more useful for decision

making”

That’s all from our presentation

Any Query ???

Thank you