indicated under List A. LIST A LIST B 1 Concerns the relative size of an item and its effect on decisions. a. Predictive value W N Information confirms expectations. b. Relevance Important for making inter-firm comparisons. C. Timeliness 4 Applying the same accounting practices over time. d. Accrual basis of accounting 5 Implies consensus among different measures. e. Feedback value A complete set of financial statements (including 6 comparative information) should be presented at least f. Frequency of reporting annually. 7 Information is available prior to the decisions. Faithful representation 8 Pertinent to the decision at hand h. Understandability 9 Along with relevance, a fundamental qualitative characteristic. i. Materiality .0 Requires consideration of the cost and value of information. j. Comparability 11 The process of admitting information into financial statements. k. Offsetting An entity reports separately both assets and liabilities, and income and expenses. 1. Recognition 13 Information is useful in determining the future m. Consistency Effects of transactions on an entity's economic resources 14 and claims are recognized in the periods in which those effects occur, even if the resulting cash receipts and n. Cost effectiveness payments occur in a different period It requires that users have some knowledge of the 15 complex economic activities of enterprises, the accounting process and the technical terminology in the O, Verifiability statements. P. Prudence q. Substance over form