Faithful representative and comparability are the main fundamental and enhancing qualitative characteristics for financial statements. Utilizing these characteristics can be helpful for making better decisions.
According to AASB, a faithful representative, as a fundamental qualitative characteristic, means that information should represent transactions or other items that it intends to represent or be expected to represent faithfully. What’s more, the description should be complete, neural and free from error. Satisfying this characteristic with a fairly strict format guarantees the information in financial statement is completed recorded, without bias or omissions, which will be helpful for decision-makers.
Comparability is a enhancing qualitative