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Predictive Value

information is useful in predicting the future


pertinent to the decision at hand


information is available prior to the decision

distribution to owners

decreases in equity resulting from transfers to owners

feedback value

information confirms expectations


along with relevance, a primary decision-specific quality


results if an asset is sold for more than its book value

representational faithfulness

agreement between a measure and the phenomenon it purports to represent

comprehensive income

the change in equity from non-owner transactions


concerns the relative size of an item and its effect on decisions


important for making inter-firm comparisons


accounting information should not favor a particular group


the process of admitting information into financial statements


apply the same accounting practices over time

cost effectiveness

requires consideration of the costs and value of information


implies consensus among different measures

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