Answer
The four qualities are:
1. Reliability– The data is authentically dependable, irrefutable, and impartial.
2. Measurability– It has a relevant characteristic measurable with adequate reliability.
3. Relevance– The data is capable of impacting decision making.
4. Definitions– The element meets the meaning of a component of financial statements.
Work Step by Step
If an item is reliable, measurable, relevant and appropriately defined, then the item is fit to be entered into financial statements.
