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How qualitative characteristic of accounting information be in conflict?
Wiki User
∙ 11y ago
Qualitative characteristic of accounting information are sometimes at odds of each other
Wiki User
∙ 11y ago
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How does management accounting information criteria conflicted with each other?
Each criteria of management accounting information is to satisfy the management needing for information useful for planning, controlling and decision making. However, these criteria also face conflict amongst one another. Conflict simply refers to the incompatibility or interference of one's idea, event, or activity with another. In this case, the conflict between criteria will happen when satisfying a criterion affects another criterion being difficult to fulfill as they are in collision with each other. Accounting information should be useful for decision-making, must have relevance and reliability of these two main qualitative characteristics. However, these qualities often can conflict, requiring a trade-off between various degrees of relevance and reliability. A forecast of a financial variable may possess a high degree of relevance to investors and creditors. However, a forecast necessarily contains subjectivity in the estimation of future events. Therefore, because of a low degree of reliability, generally accepted accounting principles do not require companies to provide forecasts of any financial variables. For examples, accounting information requirements associated with the timeliness, predictive value and feedback value, while the predictive value of accounting information may be due to a lack of verification, so that the reliability of damage; on the contrary, if always insisted truthfully, then wait until the conditions are ripe when the accounting information may have lost its predictive value. As the reliability and relevance cannot have both, one can only depending on the degree of emphasis by choosing one of the two, leading to a different accounting treatment. One of the most typical is the right choice of accounting measurement attributes. Besides that, another conflict can be a result of the criteria of Timeless and verifiability. Information is useful when it is timely. To be timely, the information must be available when needed to define problem or to be begin to identify possible solutions. Those criteria might conflict with verifiability. It is because when needed verifiability information, it may take time to calculate or to get it after production process is end. Verifiability is the useful information when it is accurate. Before relying on information to make decisions, it is important to ensure that the information is correct. For example, a production manager has to decide the actual amount of pineapple to be used in produce of 10000 units of pineapple juices. But, because of the time given is limited, he has to prepared the report to top management by forecast the amount of pineapple will be used. Although he is meet the criteria of timeliness, he is might not meet the criteria of verifiable. He do not used the actual amount of pineapple will be used. It is because there are some problems may occur during the production process: cost of pineapples is lower or others factors. When the production is end, he will able to know the actual amount of pineapple will be used. So, the criteria timeliness is conflict with the criteria verifiability. Another conflict is between timeliness and reliability of information. Information is said to be reliable when they incorporate all aspects of a transaction as well as other events in order to facilitate users in deciding on any issue regarding the latter. However, most of the times in providing timely reporting, those aforesaid transactions or events are never taken into account as it occurs after the report is prepared and thus impairing reliability. In interest of timeliness, the reliability of the information is sacrificed, every loss of reliability diminishes the usefulness of information and as time pass, and either the reliability of the information drops or increase accordingly. For example, the material supplier decides to supply only one of the Material A. Company Y is very interested and is capable to buy the Material A. The supplier is interested on selling the Material A to Company Y, but there is no contract signed between them. As time passes, the supplier received an offer from Company Z's, with a higher price and shorter time compared to Company Y. Therefore, Material A is selling to Company Z and Y loses the Material A. Company Y is reliable on material supplier to get the Material A yet the supplier needed to sell the Material A in a shorter time to get the profit. So, supplier decides to sell it to Company Z. Thus, the criterion of timeliness is conflict with criteria of reliability.
What are the issues of accounting firms going into financial services market?
I don't know that much about accounting or financial investing, but it doesn't sound like a good idea to me to combine these two companies together under one roof. I am not saying that one person can't own both of these companies at the same time, but they should be kept separate as two different entities. When in the accounting business, you have to remain loyal to your clientele, because they might happen to be in the business of mutual funds, which is an investment company. If you gave your client advice where they could get a better investment return by going to a different mutual fund investment group, then that could be a conflict of interest to your client who also owns a mutual fund investment group.
Is it a conflict of interest to process payroll and enter salary information in an hr system?
Not sure if it is a conflict of interest but it is an internal control weakness. This is a weakness due to the fact that there is a potential for fraud. A person who processes payroll can make up an employee and wage amounts. However, if there are review processes in place you should be fine. It is very difficult to have segregation of duties in a small company.
How can you solve a conflict by smoothing?
Smoothing does not necessarily solve a conflict. It may create a feeling that the conflict is not as severe as it has been perceived to be or may provide a "cooling off" period but the confict remains unresolved.
Does accounting concepts conflict?
Accruals and prudenceThe accruals concept requires future income (e.g. in relation to credit sales) to be accrued. The prudence concept dictates that caution should be exercised, so that if there is doubt about the subsequent receipt, no accrual should be made.Consistency and prudenceIf circumstances change, prudence may conflict with the consistency concept, which requires the same treatment year after year.In both situations, prudence must prevail.
What is the primary characteristic of constructive conflict?
Concentrates on issues, not people
What is endemic conflict?
Endemic conflict is a conflict or problem that is characteristic to a specific place or locale. Examples: The drought in California, an issue occuring in a certain city, etc.
What is the definition of dramatic tone?
characteristic of or appropriate to the drama, especially in involving conflict or contrast
What is a content conflict?
Content conflict occurs when we disagree about information
What is content conflict?
Content conflict occurs when we disagree about information
What is the most important characteristic in any story conflict progress oddity unusualness?
Conflict is the most important characteristic in any story, as it drives the plot forward and creates tension that engages the audience. While progress, oddity, and unusualness can enhance a story, conflict is the central element that challenges the characters and drives the narrative towards resolution.
How does management accounting information criteria conflicted with each other?
Each criteria of management accounting information is to satisfy the management needing for information useful for planning, controlling and decision making. However, these criteria also face conflict amongst one another. Conflict simply refers to the incompatibility or interference of one's idea, event, or activity with another. In this case, the conflict between criteria will happen when satisfying a criterion affects another criterion being difficult to fulfill as they are in collision with each other. Accounting information should be useful for decision-making, must have relevance and reliability of these two main qualitative characteristics. However, these qualities often can conflict, requiring a trade-off between various degrees of relevance and reliability. A forecast of a financial variable may possess a high degree of relevance to investors and creditors. However, a forecast necessarily contains subjectivity in the estimation of future events. Therefore, because of a low degree of reliability, generally accepted accounting principles do not require companies to provide forecasts of any financial variables. For examples, accounting information requirements associated with the timeliness, predictive value and feedback value, while the predictive value of accounting information may be due to a lack of verification, so that the reliability of damage; on the contrary, if always insisted truthfully, then wait until the conditions are ripe when the accounting information may have lost its predictive value. As the reliability and relevance cannot have both, one can only depending on the degree of emphasis by choosing one of the two, leading to a different accounting treatment. One of the most typical is the right choice of accounting measurement attributes. Besides that, another conflict can be a result of the criteria of Timeless and verifiability. Information is useful when it is timely. To be timely, the information must be available when needed to define problem or to be begin to identify possible solutions. Those criteria might conflict with verifiability. It is because when needed verifiability information, it may take time to calculate or to get it after production process is end. Verifiability is the useful information when it is accurate. Before relying on information to make decisions, it is important to ensure that the information is correct. For example, a production manager has to decide the actual amount of pineapple to be used in produce of 10000 units of pineapple juices. But, because of the time given is limited, he has to prepared the report to top management by forecast the amount of pineapple will be used. Although he is meet the criteria of timeliness, he is might not meet the criteria of verifiable. He do not used the actual amount of pineapple will be used. It is because there are some problems may occur during the production process: cost of pineapples is lower or others factors. When the production is end, he will able to know the actual amount of pineapple will be used. So, the criteria timeliness is conflict with the criteria verifiability. Another conflict is between timeliness and reliability of information. Information is said to be reliable when they incorporate all aspects of a transaction as well as other events in order to facilitate users in deciding on any issue regarding the latter. However, most of the times in providing timely reporting, those aforesaid transactions or events are never taken into account as it occurs after the report is prepared and thus impairing reliability. In interest of timeliness, the reliability of the information is sacrificed, every loss of reliability diminishes the usefulness of information and as time pass, and either the reliability of the information drops or increase accordingly. For example, the material supplier decides to supply only one of the Material A. Company Y is very interested and is capable to buy the Material A. The supplier is interested on selling the Material A to Company Y, but there is no contract signed between them. As time passes, the supplier received an offer from Company Z's, with a higher price and shorter time compared to Company Y. Therefore, Material A is selling to Company Z and Y loses the Material A. Company Y is reliable on material supplier to get the Material A yet the supplier needed to sell the Material A in a shorter time to get the profit. So, supplier decides to sell it to Company Z. Thus, the criterion of timeliness is conflict with criteria of reliability.
Explain the characteristic of useful information and give example of how they may conflict with each other?
The first characteristic is Relevance. The information that a person uses must be relevant to the current problem at hand. If the information is not relevant it would not help to solve the problem at all. The 2nd characteristic is Complete. The information must be complete. If the information is not complete and only partial information is received, it may lead to wrong decisions being made as only half of an entirety of the information is known. The 3rd characteristic is Accuracy. The information must be accurate as unaccurate information would lead to many different major problems as unaccurate information for example, may lead to people playing the stock market to lose alot of money. The 4th characteristic is Current. The information must be current as a fact of yesterday may not be a fact of today. For example, a criminal on the loose the day before would not be a criminal on the loose anymore if he gets caught today. As the stock market is everchanging, current information is really a must. The 5th characteristic is Economical. The information used must be of economical use to companies that use them. Companies are built to make profit, if the information used is not economical it would result in companies making losses and get shut down. That is why economical information is important. By Jordan :D Kudos to my school in Uganda (kampala international school of uganda)
What are news charateristics compared to drama?
the elements of news are timeliness, currency, conflict, consequence, prominence, proximity, human interest and oddity. The characteristic of a news is that it is the newly received or noteworthy information, esp. about recent or important events. the drama is what you are acting in a play.
What is contemporary conflict theory?
Can u help me to find an information about contemporary conflict theory,its definition and uses?
How do you spell reconciled?
That is the correct spelling of "reconciled" - the past tense of the verb (reconcile) or adjective, meaning ended a conflict or grievance, or balanced an accounting record.
What are some issues that may arise from the sharing of information are?
CONFLICT MISUNDERSTANDING Risk of pilferage,information leakage,
