Accounting information: economic essence and quality criteria
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2016, Vol 3, Issue
Abstract
The article highlights the role of information in the management of an enterprise. It is proved that accounting findings are not only accounting information, but also some knowledge gained. That is why accounting information sources should be viewed, on the one hand, as information sources that include accounting information on hard or soft copies and come from financial and management accounting systems, on the other hands, as knowledge obtained on the basis of such information. The economic essence of accounting information is disclosed and its main features are described: intangible form; unique operating process; replicable nature; multiple uses; obsolescence, however, under some circumstances, its value might be renewed; different values for different users. The author states that the quality of information is determined by: a combination of its parameters; the degree to which the requirements of users (external and internal) are met; template correspondence and legal compliance. In addition, the quality of information depends on its utility for users. Aset of factors that affect the quality of accounting information is identified, namely: the organization of accounting; expertise of accounting staff; effective internal control; the quality of laws and regulations that govern accounting; understanding objectives of accounting; corporate culture; workplace organization for accountants. Each of the above-mentioned factors is described in detail. The paper explains why economic entities adhere to legislative standards of tax laws, the violation of which can result in administrative and criminal penalties, and why they primarily provide information for fiscal needs of users. This leads to the neglect of conceptual framework of accounting and decline in the quality of accounting information. It is proved that accuracy and relevance are the main quality features of accounting information.As long as these criteria are met, information should be assessed for comparability, clarity and understandability. It is specified that management accounting information should possess the following qualitative characteristics of being reliable, relevant, comparable, straightforward, time-sensitive and ready to be checked.
Authors and Affiliations
Iryna Ometsinska
Keywords
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