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include acquisitions of other businesses International Accounting Standards Board
and investments in financial securities (IASB). The Framework addresses the
such as stocks and bonds within a specified objective of general-purpose financial
period. Accounting information can also reporting, qualitative characteristics of useful
be understood well by considering its key financial information, financial statements
attributes or characteristics that make it and the reporting entity, the elements
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useful in decision making, as described in of financial statements, recognition and
the following section. derecognition, measurement, presentation
Quantitative and Qualitative and disclosure, concepts of capital and
Information capital maintenance.
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Quantitative information deals with The objective of general-purpose financial
numbers, trying to measure things statements is to provide information about
precisely and find patterns in data, often the financial position, financial performance
using surveys and experiments. In contrast, and cash flows of an entity that is useful to
Qualitative information describes qualities a wide range of users in making economic
or characteristics that cannot be easily decisions.
quantified and it deals with subjective Qualitative characteristics of
attributes, opinions, feelings, behaviour useful accounting information
and observations. Quantitative information Qualitative characteristics of useful
helps to measure and find patterns using accounting information are well described
numbers while qualitative information in the Conceptual Framework for
helps to understand the stories and reasons Financial Reporting, as revised in 2018
behind the numbers. Financial accounting by International Accounting Standards
reports are inherently quantitative; however, Board (IASB). This provides important
without qualitative aspects, they lose their (change the terminology) with details
significance. about the basic reasoning underlying the

Conceptual framework of preparation of financial statements and
financial reporting reporting. Qualitative characteristics can
The conceptual framework of financial be divided into two levels, the fundamental
reporting is a set of theories and concepts and enhancing qualitative characteristics.
that guide the creation, preparation, and Fundamental qualitative characteristics are
presentation of financial statements. It is the basic or primary characteristics while
designed to ensure consistency, reliability, the enhancing attributes are the additional
and transparency in financial reporting. features that add more value or they enhance
The framework is primarily established more the decision usefulness of financial
by standard-setting bodies such as the information.

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