Research On Basic Concept Of Financial Accounting Information's Quality

Accounting is a information system, it provides information for three levels. The first is the monetary financial information. It shows a economic entity's assets, liabilities, earnings and their changes. The second is the illustrative information without any numbers. This kind of information explains not only the entity's financial affairs, but also lots of correlative environmental information about society, culture, moral and law. Lastly, other information provided for the inside management of the economic entity, this information including short term (long term) decision information, budget information, etc. But in actual financial report pattern, only the first two levels of information was included.Nowadays, academic research about the quality of financial accounting information contains two aspects. One is to define the standards for accounting information's quality, which is also called the accounting information's quality characteristics. These quality characteristics are used to evaluate the entities' financial report in many countries' accounting standards. Because of the difference between financial report's object of each country, there are some difference between every countries' quality characteristics system. Another aspect is to discuss the reasons why the fake accounting information appear and how to solve this problem. In this article, we will discuss the first aspect of research on accounting information.This article will discuss the financial accounting information's quality characteristics system according to the conceptual frameworks for financial accounting, (which are formulated by FASB, ASB and IASC respectively) , the accounting standards and the research of academia in China. The quality characteristics system consists of relativity, reliability, authenticity, comparability, materiality and intelligibility.