Question

Explain the importance of having 1-“confirmatory value”

2-“predictive value”

3-“timeliness”

4-“comparability”

each one separating in annual reports

Answer 1

Financial information is useful if it has predictive value and confirmatory value.

1. confirmatory value - :Confirmatory value enables users to check and confirm earlier predictions or evaluations.

2.predictive value -:Predictive value helps users in predicting or anticipating future outcomes.

3.timeliness -:Timeliness means providing information to decision-makers in time to be capable of influencing their decisions. It shouldn't be significantly delayed or else it will be of little or no value.

4. comparability -:Comparable information enables comparisons within the entity and across entities. When comparisons are made within the entity, information is compared from one accounting period to another.