A CPA in east Denver explains a hierarchy of accounting qualities
According to our CPAs in east Denver, when dealing with user-specific factors in accounting, the hierarchy separates user-specific qualities, for example, understandability, from qualities inherent in information. Information cannot be useful to decision makers who cannot understand it, even though it may otherwise be relevant to a decision and be reliable.
However, understandability of information is related to the characteristics of the decision maker as well as the characteristics of the information reviews by east Denver CPAs, and therefore, understandability cannot be evaluated in overall terms but must be judged in relation to a specific class of decision makers.
Also, as east Denver certified public accountants are quick to note, timeliness, is an ancillary aspect of relevance. If information is not available when it is needed or becomes available so long after the reported events that it has no value for future action, it lacks relevance and is of little or no use. Timeliness alone cannot make information relevant, but a lack of timeliness can rob information of relevance it might otherwise have had to an accounting firm. Usually, information does both provide feedback on earlier expectations and forecast future cash-flows.
