Qualitative Characteristics of Financial Information Essay

Qualitative Characteristics of Financial Information - Essay Example The information is not just useful for the capital providers but also to the other user groups such as government, regulatory bodies etc. The next level of conceptual framework is the fundamental concepts i.e. qualitative characteristics of financial information and elements of financial statements. The third level is the implementation level, which contains recognition, disclosure and measurement concepts through principles, assumptions and constraints (Appendix 1). The qualitative characteristics of financial information are an important part of the total conceptual framework because they act as a bridge between the first level and third level of the framework. However, the definition of quality threshold of materiality and the conflicts between prudence and neutrality, and relevance and reliability has always been debated. In addition to the discussion of these constraints, this essay presents the Conceptual Framework for Financial Reporting 2010 provided by IASB as to how the new framework has placed these characteristics. ... The Conceptual Framework for Financial Reporting 2010 or commonly referred to as Framework 2010 states the objective of financial reporting that is to provide the financial information related to the reporting entity that can be helpful to investors and creditors in making appropriate decisions (McConnell, 2011). Therefore, in order for the financial information to be useful, it must possess some characteristics such as materiality, prudence, neutrality, relevance and reliability. An information is considered material if its misstatement, modification or omission can influence the economic decisions of the users, taken on the basis of that information. Materiality depends on the magnitude of the error in circumstances when the misstatement or omission has taken place. The financial statements are prepared in an uncertain environment due to many events such as useful life of fixed assets, collectability of doubtful receivables, and warranty claims. These uncertainties are recognized b y exercising prudence while preparing the financial statements. Prudence means making careful judgement in making estimates in the uncertain conditions, so that the income or assets are not overstated and expenses or liabilities are not understated (IASC Foundation and IASB, 2008, p.25). Neutrality means that the financial information should be free from any bias and does not influence decision making in order to achieve predetermined outcome. Financial information is useful if it has the quality of influencing decisions by helping the users in evaluation of past, future and present events related to the reporting entity. The past information regarding the financial position and performance is frequently used for predicting the future performance and position. Information is

A Website Usability Test Coursework Example | Topics and Well Written Essays - 1500 words

A Website Usability Test - Coursework Example The most accepted and recognized methodology of identifying important usability issues with the end user remains usability testing with actual representatives. It is possible to evaluate how users respond when they try common responsibilities on the company site and site using face-to-face test session moderated using the purpose built usability testing stations (Ward, Shadle, and Mofield, 2008, p. 70). All through, the observer can supervise the usability session in other rooms that remain comfortable and serving as the observation centre. The portable usability testing kit allows people to carry out usability testing in their offices. It also includes field testing where the supervisor views users in action that remains the natural habitat and remote testing to widen the reach. Among many others benefits of usability testing include increasing the conversion rates of online conversion. In this case, using the example would be a banking client hiking submissions of loan application forms by fourteen percent from thirty-five percent in a period not exceeding one-and-a-half months. Secondly, usability testing supports online migration. Scholars would point at a tolling company reducing calls to its call centre by more than sixteen percent following successful implementation of various recommendations from the company. Usability testing plays part in increasing employee productivity. A company would for instance, increase work completion rate by employees from forty-eight percent to around.