Revenues should be earned and realized before they are recorded.

Transfers of resources are recorded at prices agreed on by the parties at the time of the exchange.

Information important enough to influence the decision of an informed user of the financial statements should be published.

Gains may be recorded only when realized, but losses should be recorded when they first become evident.

Expenses should be recognized as they are incurred to produce revenues.

This characteristic requires that information on economic activity corresponds to the actual underlying activity.

Information has this characteristic when it supports users’ abilities to anticipate outcomes of events.

Information has this characteristic when it reveals differences and similarities that are real and are not the result of differing accounting treatments.

This characteristic requires disclosure of all significant information in a way that aids understanding and is not misleading.

This characteristic requires accounting information to be free of measurement method bias.

Information has this characteristic when it can be significantly duplicated by independent measurers using the same methods.

Information has this characteristic when depicts for users what it purports to represent.

This characteristic requires that information be pertinent to a decision.

This characteristic requires that accounting information be available when it is necessary to have for decision making.

Information has this characteristic when it reveals the relative success of users in predicting outcomes.