Hierarchy of Accounting Qualities

Users of Accounting Information           Decision Makers and Their
                                                            Characteristics
Pervasive Constraint                 B             Benefits > Costs
User-specific Qualities              U             Understandability
                                                D             Decision Usefulness
Primary Decision Specific Qualities
1. Relevance
2. Reliability
                 Ingredients of Primary Qualities =>Relevance
                    1. Timeliness
                    2. Predictive Value & Feedback Value
                 Ingredients of Primary Qualities =>Reliability
                    1. Verifiability
                    2. Neutrality
                    3. Representational & Faithfulness
Secondary and Interactive Qualities
  Relevance = Comparability
  Reliability = Consistency
                                                      Threshold for Recognition
                                                                Materiality