Information has predictive value if it can be used in makung predictions

for example a business needs to assess the ability of its customers in deciding to sell goods on credit

financial information provides feedback about (confirms or changes) previous evaluation

for example a business needs to assess the trend of its sales over the periods in deciding to buy additional plant

an entity needs to specify its materiality level as it depends on the nature or size or both

materiality is important in ditermining whether an item is an asset or an expense.

for example a large business that has net assets of RM20 million recognises individual assets that cost less than RM2000 as an expense.

There are no material errors or omissions so that financial information gives a true and fair view of entity.

In 20X1, it was discovered that a revenue in 20X0 was overstated by RM10m and general expenses in 20X0 was understated by RM10.

Complete information is necessarry for a user to understand the events or transactions being represented.

for example a description of the nature of the assets in the group and a description of what the numerical depicition represents.

The financial information is prepared without bias in the selection or presentation of financial information.

for example a business is having liquidity problems. The financial is not neutral if the information has been manipulated business looks good.

COMPARABILITY

VERIFIBIALITY

UNDERSTANDIBILITY

TIMELINESS