1. Understand ability : The information must be readily understandable to users of the financial statement. This means the information must be clearly presented.
2. Relevance’s : The information must be relevant to the needs of the users.
3. Reliability: The information must be free or material error and bias and not misleading. Thus, the information should faithfully represent transactions and other events.
3. Comparability : The information must be comparable to the financial information presented for other accounting period.
