Qualitative+Characteristics+and+Constraints+Conceptual+Framwork
Quantitative and qualitative design
2. A priori categorization. Because the use of numbers already dominates the data collection phase, the work required to specify the categories and values needs to be done priori to the actual study.
3. Statistics and the language of statistics. Statistical analyses can range from calculating the average (“mean”) of several figures on a calculator to running complex multivariate analyses on a computer. Much of the statistical terminology has become part of the QUAN vocabulary.
Qualitative researchers are interested in exploring and describing social phenomena. They ask questions such as “In what ways do
1. A descriptive and exploratory focus.
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Variables rather than cases. 2. A priori categorization.
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Statistics and the language of statistics.
良好品质的英语作文
良好品质的英语作文Good qualities are essential for personal growth and social interaction. Here are some of the most important qualities that one should strive to develop1. Honesty Honesty is the foundation of trust. Being truthful in all situations whether its about admitting a mistake or telling the truth even when its difficult builds a reputation for integrity.2. Respect Treating others with dignity and consideration is crucial. Respecting others opinions cultures and personal space fosters a harmonious environment.3. Empathy The ability to understand and share the feelings of others is a powerful quality. Empathy allows us to connect with people on a deeper level and respond to their needs.4. Responsibility Taking responsibility for ones actions and decisions is a sign of maturity. It involves being accountable and owning up to the consequences of ones choices.5. Perseverance Perseverance is the ability to keep going despite obstacles. Its about having a strong will and determination to achieve goals even when faced with challenges.6. Kindness Small acts of kindness can have a significant impact on others. Being kind doesnt cost anything but can make a world of difference to someones day.7. Humility Recognizing ones limitations and being open to learning from others is a sign of humility. Its about not letting success or status get to ones head.8. Courage Courage is the ability to face fear and take action despite it. Its about standing up for whats right and not being deterred by intimidation.9. Patience Patience is the capacity to accept delay trouble or suffering without becoming annoyed or anxious. Its an important quality in all aspects of life from work to relationships.10. Curiosity A curious mind is always learning and seeking new knowledge. Curiosity drives innovation and personal development.11. Tolerance Being tolerant means accepting and respecting differences in opinions beliefs and lifestyles. Its about embracing diversity and promoting inclusivity.12. Selfdiscipline Selfdiscipline involves controlling ones emotions and impulses in order to achieve goals. Its about setting priorities and sticking to them.13. Creativity The ability to think outside the box and come up with new ideas is a valuable quality in todays world. Creativity can lead to innovative solutions and original creations.14. Gratitude Practicing gratitude involves recognizing and appreciating what one has. It can lead to increased happiness and a positive outlook on life.15. Openmindedness Being open to new ideas and experiences can lead to personal growth and a broader understanding of the world. Its about being receptive to change and different perspectives.Cultivating these qualities not only enhances ones character but also contributes positively to society. They are the building blocks of a successful and fulfilling life.。
qualitative research method
qualitative research methodQualitative research is a type of social science research method that focuses on understanding the subjective experiences, opinions, and perspectives of individuals. It is a form of exploratory research that aims to uncover the deeper meaning of human behavior and beliefs. This approach is often used in fields such as sociology, anthropology, psychology, and education.Step 1: Identifying research questionThe first step in conducting qualitative research is to identify the research question or problem that you wish to investigate. This can be done through literature review, observations, and conversations with stakeholders. The research question should be clear, concise, and specific to the topic of interest.Step 2: Selecting Participants and SamplingThe next step is to select the participants for the study. Qualitative research often involves small groups of participants or individuals, and sampling strategies are aimed at selecting a diverse range of people who can provide rich and varied perspectives on the research question or topic. The sampling method used in qualitative research is often non-probability, meaning participants are selected based on specific characteristics or criteria.Step 3: Data CollectionData collection in qualitative research is typically done through unstructured or semi-structured interviews, focus group discussions, and observations. Researchers aim togather as much data as possible to provide a comprehensive understanding of the topic being investigated. This approach allows for flexibility in data collection, as researchers can probe for more information based on participants' responses.Step 4: AnalysisQualitative data analysis involves interpreting and making sense of the data collected. This can be done through various methods such as thematic analysis, grounded theory analysis, and narrative analysis. Researchers aim to identify recurring themes and patterns within the data that arerelevant to the research question or problem being investigated. Data analysis is an iterative process wheredata is reviewed, coded, and organized until the researcher achieves data saturation, meaning that they have gathered enough information to answer the research question.Step 5: Reporting FindingsThe final step in qualitative research is reporting the findings. The results of the study should be communicated ina clear, concise, and accessible manner. This can be done through a range of mediums such as academic articles, reports, and presentations. The findings should be supported by evidence and convey the perspectives and experiences of the participants.In conclusion, qualitative research is a valuable toolfor exploring complex social phenomena. It provides insight into the subjective experiences of individuals and can aid in understanding social and cultural dynamics. By following the steps outlined above, researchers can develop a robust study that offers meaningful insights into the topic being investigated.。
Qualitative inquire 定性调查
Design a. Time : this is just one Friday evening b. It’s possible that the trolleys are piled high because the weekend shop
Two fundamental misconceptions about QI: a. QI can be based on a single case that involves no quantification b. Neither ‘scientific’ nor ‘objective’ In fact
Level 1: the basic characteristics and contributions of qualitative inquiry(QI)
Level 2: the seven key traditions of QI
Level 1: the inquiring mind
1
Contents
QI is anything but a soft option – it demands rigour, precision, systematicity and careful attention to detail.
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Qualitative Research
Experiment and research as almost synonymous Ever since the Enlightenment experimentation plays an important
e.g. interview b. Different researchers have different ideas, the advantages and
主要研究方法英文标题
主要研究方法英文标题Abstract:1. Introduction- Definition and importance of primary research- Purpose and aims of the paper2. Quantitative Research Methods- Definition and characteristics of quantitative research- Surveys, experiments, and correlational studies- Sampling techniques and sample size determination- Data collection and analysis methods- Strengths and limitations of quantitative research3. Qualitative Research Methods- Definition and characteristics of qualitative research- Ethnography, interviews, and focus groups- Data collection techniques (observation, field notes, audio/video recording)- Data analysis methods (thematic analysis, content analysis) - Strengths and limitations of qualitative research4. Mixed-Methods Research- Definition and characteristics of mixed-methods research - Sequential, concurrent, and transformative designs- Integration of quantitative and qualitative data- Strengths and limitations of mixed-methods research5. Case Study Research- Definition and characteristics of case study research- Single-case and multiple-case designs- Data collection methods (interviews, observations, document analysis)- Data analysis techniques (cross-case analysis, pattern matching, explanation building)- Strengths and limitations of case study research6. Emerging Trends in Primary Research Methods- Online surveys and web-based data collection- Ethnography and cultural immersion in research- Strengths and limitations of emerging primary research methods- Factors influencing the choice of research method (research question, sample size, resources)8. Conclusion- Summary of key findings and insights- Future directions and areas for further research in primary research methods。
定性研究和定量研究的区别论文The Difference and Combination of Quantitative and Qualitative Research
The Difference and Combination ofQuantitative and Qualitative ResearchAbstract:Quantitative research and qualitative research are two basic paradigms and methods, each with different concept, nature, fundamental theory, and research process. Recently, there are more and more arguments about the tow methods and more and more scholars promote the combination of them in researches. This thesis demonstrates the differences between the two methods and also analyzes the combination of them and its significance in researches.Key words:Quantitative research, qualitative research, difference, combinationSection One The Introduction of Quantitative Research and Qualitative ResearchThere are two paradigms in social science research. One is the positivist methodology and the other is the humanist methodology. The positivist methodology simulates the natural science and uses inductive method to discover new knowledge, uses the “hypothesis-deduction” mode to test theory (Kerlinger, 1964), uses the method of mathematical statistics to analyze quantizable empirical observation and to assure the cause-and-effect relationship. In comparison, the humanist methodology derives from humanist science and emphasizes collecting, comprehending and explaining documents.Quantitative research is the specification of the positivist methodology and it emphasizes on the quantitative analysis and statistical calculation, including experimental method, quasi-experimental method and questionnaire method, etc. Quantita tive research emerged after 1940s’. The nature of quantitative research is the use of statistic model to test the relativity between the independent variable and the dependent variable, and in turn to test the hypothesis and to deduce the cause-and-effect relationship between the variables. Quantitative research is widely employed in various researches, such as social science research, environment and ecology research, energy research and so on. In practice, quantitative research requires the following process:1)to establish hypothesis and to determine the variables in thecause-and-effect relationship;2)to use the reliable tools to measure and analyze the variables;3)to test the hypothesis;4)to draw a conclusion.In comparison, qualitative research is the specification of the humanist methodology and stresses the analysis of documents and the comprehension,explanation and annotation of the objects of research, including literature analysis method, historical research, action research, observation method, interview, case analysis and ethnography, etc. Qualitative research is a explosive research and a process of discovering new things. It is analysis and research of the quality of the objects and in turn to describe the objects and reflect the characteristics and nature of the objects.Section Two The Differences of Quantitative Research and Qualitative Research2.1 The different fundamental theoriesQuantitative research and qualitative research differs from each other in their fundamental theories. Quantitative research is based on the empirical philosophy, specifically the positivist methodology which holds that the subject and the object are separate entities, that is the social phenomena are objective and out of the influence of subjective value. The researchers should take a neutral stance in researches.On the contrary, qualitative research holds that the researchers and the objects are not independent from each other and that the comprehension of the social phenomena depends on the inter-relationship between the two. Thus researches in social science can not take a neutral stance.2.2 The different purposes of researchThe quantitative research is aimed at determine the relationship influence and the cause-and-effect relationship of the objects with more attention to individual variables and elements and their relationship. It is used to find the quantitative relationship and master the quantitative characteristics and variation by measuring the social realities, experimental verification, mathematic statistics and various mathematic and statistic analysis and is also used to find the quantitative regularity by exploring truth, rules and the essenceof the objects by the quantitative relationship, .Instead, qualitative research is aimed at comprehend the social phenomena with a heavier emphasis on the opinions of the researchers and with a view to comprehend, explain and explore the social phenomena from a holistic perspective. What’s more, qualitative research is mean t to have an insight into the objects through broad and delicate researches. At the same time, it will take into consideration the view of researchers and emphasize on the explanatory comprehension of realities in order to provide some references for similar researches and to discover the inner momentums in various educational context.2.3 The different research approachesQuantitative research is based on existing theories. Then the researchers will put forward theoretical hypothesis and to collect empirical evidences to prove the hypothesis, the presupposed models and theories. It is a deductive and general-to-specific approach which highlights the verification and extension of the existing theories. The quantity in the research comes from the materials which includes quantitative relation and which are collected by the researchers. Also those materials are reached by expert measurement and mathematical analysis, and therefore they are scientific, objective and accurate. The major methods used in quantitative research include questionnaire, experiment, survey, measurement, statistic method, etc. In order to discover a fact, the researchers in quantitative research will quantize the collected materials and use data to prove their hypothesis.In qualitative research, there is not an existing theory. Instead, it is a process of constructing theories and it collects relevant materials through interview, case study, and so on. Furthermore, qualitative research emphasizes the insightful explore into and the comprehension of social phenomena, from which a proposition, conclusion or theory can be generalized. In essence, it is a general-to-specific process (Strauss and Corbin, 1998). What’s more, qualitative research requires descriptive materials in the form of words orpictures instead of the form of accurate data, which results in the inaccuracy and ambiguity of its conclusion. The major methods used in qualitative research include observation, in-depth interview, action research and case study. The researchers in qualitative research will induce the first-hand materials and transform them in to theories.2.4 The different degrees of subjectivityQuantitative and qualitative researches both pursue objectivity, but have different degrees of subjectivity. Quantitative research is based on neutral evidence and strives for objectivity. But in the construction of hypothesis, the selection of facts and the explanation and deduction of the results, it can not guarantee the completely objectivity. Rather, qualitative research focuses on understanding the world which they observed from the point of view researchers, their main research tool is the researcher himself. Thus it is more subjective and the research process can not avoid subjectivity.Section Three The Respective Characteristics and Limitation of Qualitative Research and Quantitative Research3.1 The Characteristics and Limitation of Qualitative ResearchThere are three characteristics in quantitative research:1)Repeatability. The research process and the materials should bedistained from the influence of the personal values, that is, theresearchers must be objective during the whole research. It isadvocated that delicate measuring and analyzing instruments toensure the repeatability of the research;2)Deduction. In the quantitative research, the researcher should firstput forward some hypothesis. and then they will collect materials andtransform them into data in order to verify or falsify their hypothesis.The logic method used here is deduction.3)Controllability. The quantitative research usually requires the controlof the irrelevant variables or the uses the control groups to removethe influence of the irrelevant variables, so as to discover thecause-and-effect relation of the variables accurately.The main advantages of quantitative research is simple and concise, as well as, persuasive, however there are some limitation. On one hand, branch of instruction is to some extent humanistic, but the quantitative ignore the value and significance of people and it can hardly have insight into the humanistic aspect of the branch of instruction. On the other hand, the quantitative ignores the elements that can not be quantified. It emphasizes the quantitative measurement and analysis of the instruction activities. Thus it distorts the essence of education to some extent.3.2 The Characteristics and Limitation of Qualitative ResearchThere are two characteristics of qualitative research:1)Induction. Qualitative research employs induction as its logicmethod. The researchers may or may not have a hypothesis beforethe research and they gradually construct a theoretical hypothesisduring the research. It is a top-down inductive research model;2)The characteristic of natural scene. Qualitative research advocateresearches in the real life and natural scene. The researchers spenda long time in describe and record the results in differentconditions in the natural scene from the perspective of the object.Therefore, qualitative research is also called field research or sitestudy.At the same time, there are still some limitation of qualitative research, such as difficulty in operation, the high requirement in the researchers, the influence of the subjective elements to the conclusion and the difficulty in repetition.Section Four The Relation and Combination of Quantitative Research and Qualitative Research4.1 The relation between quantitative research and qualitative researchFirstly, quantitative research is to some extent the premise and foundation of qualitative research. Any qualitative change results from quantitative changes and only enough quantitative change can lead to qualitative changes. Thus frequent research in quantitative changes makes for the discovery of qualitative changes early. We can borrow the view of dialectical materialism: everything existing objectively is the unity of quality and quantity. There is no quantity without quality in the real world, and there was no quality without quantity. A close combination of quality and quantity can constitute a complete thing. Therefore, if we want a comprehensive study of a thing, both qualitative research and quantitative research should be conducted. In the same study, using two different methods can help us draw a more comprehensive and accurate conclusion from different sides, different angles on the same problem. Through qualitative research, we can master things the inherent characteristics of different from other things; while the supplement of quantitative research helps us to grasp the scale of the existence, development, extent, speed and other properties that can be quantified. This determines that the qualitative research and quantitative research are interrelated, complementary and indivisible.Secondly the two methods can provide mutual helps and supports for each other. For example, before qualitative research, the analysis of quantitative research data can provide great help for the qualitative study; while conducting quantitative research，quantitative research data also has a strong guiding function. Also, when performing quantitative research, quantitative research data also has a strong complementary function.Thirdly, two research methods can be interspersed with the use of eachother and combined with each other. In some studies, both qualitative methods and the quantitative methods are used. Some qualitative research also inserts data to do corroboration, while most of the quantitative research needs the rational thinking in qualitative research in the processes of hypothesizing, demonstrating the cause-and-effect relationship and discovering the regularity of phenomena. Usually, before we conduct a new research project, the quantitative research often begin with the appropriate qualitative researches, and sometimes qualitative research is also used to explain the results obtained by the quantitative research.Although quantitative research and qualitative research differ from each other in many aspects, they are not mutually exclusive but complementary to some extent. Since we have clearly seen the advantages, weakness and the relation of quantitative research and qualitative research, we can combine the two approaches together to overcome those weaknesses when using one’s strengths to overcome the other’s weaknesses. For instance, words and pictures can be used to add meaning to numbers and data, and data can be used to add precision to words and pictures. As a result, the data would be more efficient, able to test hypotheses, involve contextual details and able to be generalized, which makes contribution to obtain higher credibility.4.2 The combination of quantitative research and qualitative researchIn recent years, the increasing extension of the scope of social science research as well as the increasing multidisciplinary and interdisciplinary collaborative research, provide a realistic possibility for the mutual learning and cooperation between the two research paradigms. What’s more, thanks to the rapid development of information technology and the computing and quantitative analysis capabilities, the qualitative research has become more sophisticated. The two researches are combined with each other to provide the possibility of a different paradigm methodology.At present, the combination of the combination of quantitative and qualitative researches is gradually systemized. There are three main ideas of theamong the west scholars: Ingersoll’s Mixed Model, Dentin’s Triangulations Model and Smith’s Binding Model.4.2.1 Ingersoll’s Mixed ModelIngersoll (1983:6-12) considers quantitative and qualitative researches have their own strengths and weaknesses, both of which can be combined in order to learn from each other. Ingersoll gives a continuous quantitative and qualitative research diagram, showing the three modes combine the two methods---exploring parameters, providing examples and suggesting interpretations.The first model on left end of the diagram is “exploring parameters”. In the combination of qualitative and quantitative researches, qualitative research plays the role to explore and thus helps quantitative research to determine the parameters of the problem. On the middle point of the line is the second model---“providing examples”. Both quantitative research and qualitative research are used in the model, with each playing their own effectiveness, where qualitative research is to provide examples of quantitative research and provides views of the research objects. On the right end of the line is the third model---“suggesting interpretations”, in which the results of qualitative research help to explain the meaning and significance of the results of quantitative research. The first model begins with qualitative research, and then gradually moves to quantitative research---”explore the parameters”. The third model begins with quantitative research, and then gradually moves to qualitative research---”proposed interpretation”. In the second model, quantitative and qualitative researches are conducted simultaneously.4.2.2 Triangulation Model”Triangulation”means to study the same phenomenon through different ways, data, research objects and theories. “Triangulation”was originally applied to the field of measurement and navigation and through trigonometry people can accurately measure the area of a region. Denzin (1978) was the first to use the “triangulation”to represent the combination of different ways tostudy the same phenomenon. “Triangulation” relies on the assumption that the strengths each method can compensate the weaknesses of other methods.At present, there are four “triangulation”(Denzin, 1989): 1) data, “ triangulation” , which change the use of data resources in the study involving time, space and personal ; 2) researchers “ triangulation” , the use of different researchers; 3) theory “triangulation”, which uses multiple theoretical perspectives or a variety of theoretical perspectives to interpret the results of a study ; 4) method “ triangulation”, which is used to study the same problem by using a variety of methods.The implementation procedures of “Triangulation” include “sequential model”, “parallel model”, “fused model” and “interactive model”.“Sequential model” refers that different methods have a sequence when they are used.. “Parallel model” means the simultaneous use of different methods to verify and supplement each other. “Fused model” means to include the quantitative study into observational studies, to do an overall analysis or to quantify the observations and to do statistical analysis. “Interactive model” refers to use the qualitative and quantitative methods alternately and continuously, for example, the form of one kind of research is use in the early studies , and during the research another form is then employed, and there are combination and interaction of the two methods throughout the process of the research.4.2.3 Smith’s Binding ModelSmith (1975) believes that the forms of the combination of qualitative and quantitative researches can be divided into the one-fold combination of research programs and the combination of various research programs. 1) The one-fold combination of research programs also have two types---"continuous combination" and "parallel combination". 2) The combination of various research programs includes three models: the first is to quantify qualitative case study; the second is to discuss the quantitative indicators in the form of narrative; the third is a combination of two kinds of materials without changing their original states.Through the above three models, it can be found that qualitative and quantitative researches are on the two ends of a continuum with a variety of ways to be combined, including the different combinations of different elements of the study, the alternations of the research phases, the different combinations in the same study, the different combinations in a number of studies, etc. Despite these complex combinations, the basic approach is nothing but a combination of qualitative and quantitative researches. This basic relationship is reflected in two aspects: firstly, qualitative research can help quantitative research; Secondly, quantitative research helps qualitative research.Section Five ConclusionQuantitative research and qualitative research are not mutually exclusive but interrelated and mutually reinforcing. We can make good use of their respective strengths to overcome its limitations and to complement each other by combining the two methods so as to reach a more comprehensive conclusion. In the same study, the use of these two mutually complementary research methods helps us to study the same problem from different sides and different angles so that it can come to a more comprehensive and accurate conclusions. Therefore, understanding differences between the qualitative and quantitative researches and grasping their connections between will help us to combine the two research methods together and play a powerful role in our social or educational researches.Bibliography“论定量研究与定性研究的结合及对调查研究的启示”《和谐社会与社会建设——中国社会学会学术年会获奖论文集》2007.谭跃进.《定量分析方法》北京:中国人民大学出版社. 2006.11.伍红梅，“定量研究与定性研究的比较结合”，达州职业技术学院学报. Denzin，N. K., The research act. New York: McGraw Hill, 1978.Denzin，N. K., The research act：A theoretical introduction to sociological methods.3rd edn. Englewood Cliffs, NJ: Prentice Hall, 1989.Ingersoll, B., “Approaches to combining quantitative and qualitative social support research”. 1983.Jick，T. D., “Mixing qualitative and quantitative methods: Triangulation in action”. Administrative Science Quarterly. 24:602-611, 1979.Smith，T.W., Strategies of social research: The methodological imagination.Englewood Cliffs, NJ: Prentice Hall, 1975.Tashakkon, A. and Teddlie, C., “Mixed Methodology：Combining Qualitative and Quantitative Approaches”. Thousand Oaks，London：SAGE, 1998.。
qualitative characteristics of financial information新
The Qualitative Characteristics ofFinancialInformationIn deciding which information to include in financial statements, when to include it and how to present it, the aim is to ensure that financial statements yield information that is useful. This chapter considers the qualities of financial information that make it useful.Principles• Information provided by financial statements needs to be relevant and reliable and, if a choice exists between relevant and reliable approaches that are mutually exclusive, the approachchosen needs to be the one that results in the relevance of the information provided being maximised.▲ Information is relevant if it has the ability to influence the economic decisions of users and is provided in time to influence those decisions.▲ Information is reliable if:(a) it can be depended upon by users to represent faithfully what it either purports to represent or could reasonably be expected to represent, and therefore reflects the substance of the transactions and other events that have taken place;-faithful representation (b) it is free from deliberate or systematic bias and material error and is complete;-neutrality(c) in its preparation under conditions of uncertainty, a degree of caution hasbeen applied in exercising the necessary judgements.-prudence▲ Information in financial statements needs to be comparable.• As an aid to comparability, information in financial statements needs to be prepared and presented in a way that enables users to discern and evaluate similarities in, and differences between, the nature and effects of transactions and other events over time and across different reporting entities. ▲ Information provided by financial statements needs to be understandable, although information should not be excluded from the financial statements simply because it would not be understood by some users.• Information is understandable if its significance can be perceived by users that have a reasonable knowledge ofbusiness and economic activities and accounting and a willingness to study with reasonable diligence the information provided.▲ Information that is material needs to be given in the financial statements and information that is not material need not be given.•Information is material to the financial statements if its misstatement or omission might reasonably be expected to influence the economic decisions of users.ExplanationRelevance3.1 Relevance is a general quality that is used as a selection criterion at all stages of the financial reporting process. Information provided by financial statements needs to be relevant. Furthermore, where choices have to be made between options that are relevant and reliable but mutually exclusive, the option selected should be the one that results in the relevance of the information package as a whole being maximised - in other words, the one that is reliable and would be of most use in taking economic decisions.3.2 Information is relevant if it has the ability to influence the economic decisions of users and is provided in time to influence those decisions.3.3 Relevant information has predictive value or confirmatory value. It has predictive value if it helps users to evaluate or assess past, present or future events, and it does not need to be in the form of an explicit forecast to have predictive value. Information has confirmatory value if it helps users to confirm or correct their past evaluations and assessments. Information may have both predictive value and confirmatory value. For example, information about the current level and structure of asset holdings helps users to assess the entity's ability to exploit opportunities and react to adverse situations. The same information helps to confirm past assessments about the structure of the entity and the outcome of operations.3.4 The ability to use information in financial statements to make assessments is enhanced by the way in which it is presented. For example, the predictive value of information provided by thefinancial performance statement is enhanced if unusual or infrequent items of gains or losses are disclosed and if information is provided that helps users to assess the likely incidence of similarly unusual or infrequent gains or losses in the future. In the same way, presentations that help users to understand the recurring/non-recurring nature of the various gains and losses also improve the predictive value of the performance statement.3.5 Maximising the relevance of financial information involves maximising its predictive and confirmatory value.3.6 There are a number of different perspectives from which an entity's financial performance and financial position could be viewed and the perspective adopted could have a significant effect on the assets and liabilities recognised and on their carrying amounts. In view of the objective of financial statements, the perspective that is usually most relevant is based on theassumption that the entity is to continue in operational existence for the foreseeable future. This perspective is commonly referred to as the going concern assumption.Reliability3.7 Information provided by financial statements needs to be reliable.3.8 Information is reliable if:(a) it can be depended upon by users to represent faithfully what it either purports to represent or could reasonably be expected to represent;(b) it is free from deliberate or systematic bias (ie it is neutral);(c) it is free from material error;(d) it is complete within the bounds of materiality; and(e) in its preparation under conditions of uncertainty, a degree of caution (ie prudence) has been applied in exercisingjudgement and making the necessary estimates.Faithful representation3.9 The portrayal of a transaction or other event in the financial statements depends, inter alia, on:(a) the rights and obligations arising and the weight attached to each;(b) how the rights and obligations to which most weight has been attached are characterised;(c) which measurement basis (or bases) and presentation techniques are used to depict the rights and obligations; and (d) the way in which the elements arising from the transaction or other event are presented in the financial statements.3.10 A transaction or other event is faithfully represented in the financial statements if the way in which it is recognised, measured and presented inthose statements corresponds closely to the effect of that transaction or event.3.11 It needs to be borne in mind that most financial information is subject to some risk of being less than a faithful representation of what it purports to portray. This is partly due to inherent difficulties in identifying the transactions and other events to be dealt with and in identifying the consequences of such transactions and events that need to be measured. It reflects the difficulties in devising and applying measurement and presentation techniques that can convey messages that reflect those transactions and events. Furthermore, references to faithful representation need to be understood in the context of the Statement as a whole, which limits the kind of information that may properly be included in financial statements.3.12 Faithful representation involves identifying all the rights and obligations arising from the transaction or event,giving greater weight to those that are likely to have a commercial effect in practice, then accounting for and presenting the transaction or other event in a way that reflects that commercial effect - in other words, in a way that reflects its substance.3.13 The substance of a transaction or other event is not always consistent with that suggested by its legal form: although the effects of the legal characteristics of a transaction or other event are themselves a part of its substance and commercial effect, they have to be construed in the context of the transaction as a whole, including any related transactions. For example, an entity may pass legal ownership of an item of property to another party, yet, when the circumstances are looked at as a whole, it may be found that arrangements exist that ensure that the entity continues to have access to the future economic benefits embodied in that item of property. In suchcircumstances, the accounting needs to reflect this continuing interest.3.14 A group or series of transactions that achieves an overall commercial effect will often need to be viewed as a whole in order to be accounted for in accordance with its substance.Neutrality3.15 The information provided by financial statements needs to be neutral - in other words, free from deliberate or systematic bias. Financial information is not neutral if it has been selected or presented in such a way as to influence the making of a decision or judgement in order to achieve a predetermined result or outcome.Complete and free from material error 3.16 In requiring information provided by financial statements to represent faithfully what it purports to represent and to be neutral, there is an implication that theinformation is complete and free from error - at least within the bounds of materiality. Information that contains a material error or has been omitted for reasons other than materiality can cause the financial statements to be false or misleading and thus unreliable and deficient in terms of their relevance.3.17 This reference to being complete within the bounds of materiality is important because completeness is relative: financial statements are a highly aggregated portrayal of an entity's financial performance and financial position and therefore cannot show everything.Prudence3.18 Uncertainty surrounds many of the events and circumstances that are reported on in the financial statements and it is dealt with in those statements by disclosing the nature and extent of theuncertainty involved and by exercising prudence.3.19 Prudence is the inclusion of a degree of caution in the exercise of the judgements needed in making the estimates required under conditions of uncertainty, such that gains and assets are not overstated and losses and liabilities are not understated. In particular, under such conditions it requires more confirmatory evidence about the existence of, and a greater reliability of measurement for, assets and gains than is required for liabilities and losses.3.20 However, it is not necessary to exercise prudence where there is no uncertainty. Nor is it appropriate to use prudence as a reason for, for example, creating hidden reserves or excessive provisions, deliberately understating assets or gains, or deliberately overstating liabilities or losses, because that would mean that the financial statements are not neutral and, therefore, are not reliable.Comparability3.21 Information in an entity's financial statements gains greatly in usefulness if it can be compared with similar information about the entity for some other period or point in time in order to identify trends in financial performance and financial position. Information about an entity is also much more useful if it can be compared with similar information about other entities in order to evaluate their relative financial performance and financial position.3.22 Information in financial statements therefore needs to be comparable - at least as far as is possible. Furthermore, to help users to make comparisons, such information needs to be prepared and presented in a way that enables users to discern and evaluate similarities in, and differences between, the nature and effects of transactions and other events taking place over time and across different reporting entities. This can usually beachieved through a combination of consistency and disclosure of accounting policies.Consistency3.23 Comparability generally implies consistency throughout the reporting entity within each accounting period and from one period to the next. However, consistency is not an end in itself nor should it be allowed to become an impediment to the introduction of improved accounting practices. Consistency can also be useful in enhancing comparability between entities, although it should not be confused with a need for absolute uniformity. Disclosure of accounting policies3.24 In order to determine whether consistency exists or to assist in the making of comparisons despite inconsistencies, users need to be able to identify any differences between:(a) the accounting policies adopted by an entity to account for like transactions and other events;(b) the accounting policies adopted from period to period by an entity; and(c) the accounting policies adopted by different entities.3.25 Disclosure of the accounting policies employed in the preparation of the financial statements, of any changes in those policies and of the effects of such changes therefore enhances the usefulness of financial statements. Understandability3.26 Information provided by financial statements needs to be understandable - in other words, users need to be able to perceive its significance.3.27 Whether financial information is understandable will depend on:(a) the way in which the effects of transactions and other events are characterised, aggregated and classified. For example, information that does not properly reflect and communicate the substance of transactions and other events will not help users to understand the entity's financial performance or financial position.(b) the way in which the information is presented. (This is considered further in Chapter 7.)(c) the capabilities of users. Those preparing financial statements are entitled to assume that users have a reasonable knowledge of business and economic activities and accounting and a willingness to study with reasonable diligence the information provided.Materiality3.28 Materiality is the final test of what information should be given in a particular set of financial statements. While theparagraphs above describe the characteristics that, if present, will mean that the usefulness of the financial information has been maximised, the materiality test asks whether the resulting information content is of such significance as to require its inclusion in the financial statements.3.29 Materiality is therefore a threshold quality that is demanded of all information given in the financial statements. Furthermore, when immaterial information is given in the financial statements, the resulting clutter can impair the understandability of the other information provided. In such circumstances, the immaterial information will need to be excluded.3.30 An item of information is material to the financial statements if its misstatement or omission might reasonably be expected to influence the economic decisions of users of those financial statements,including their assessments of management's stewardship.3.31 Whether information is material will depend on the size and nature of the item in question judged in the particular circumstances of the case. The principal factors to be taken into account are set out below. It will usually be a combination of these factors, rather than any one in particular, that will determine materiality.(a) The item's size is judged in the context both of the financial statements as a whole and of the other information available to users that would affect their evaluation of the financial statements. This includes, for example, considering how the item affects the evaluation of trends and similar considerations.(b) Consideration is given to the item's nature in relation to:(i) the transactions or other events giving rise to it;(ii) the legality, sensitivity, normality and potential consequences of the event or transaction;(iii) the identity of the parties involved; and(iv) the particular headings and disclosures that are affected.3.32 If there are two or more similar items, the materiality of the items in aggregate as well as of the items individually needs to be considered.Constraints on the qualitative characteristics 3.33 On occasion, a conflict will arise between the characteristics of relevance, reliability, comparability and understandability. In such circumstances, a trade-off needs to be found that still enables the objective of financial statements to be met.Relevance and reliability3.34 Sometimes the information that is the most relevant is not the most reliable and vice versa. Choosing the amount at which to measure an asset or liability will sometimes involve just such a conflict. In such circumstances, it will usually be appropriate to use the information that is the most relevant of whichever information is reliable.3.35 Conflict between relevance and reliability can also arise over the timeliness of information. That is because a delay in providing information can make it out-of-date, which will affect its relevance, yet reporting on transactions and other events before all the uncertainties involved are resolved may affect the information's reliability. On the other hand, leaving information out of the financial statements because of reliability concerns may affect the completeness, and therefore reliability, of the information that is provided. Although financial information should generally be made available as soon as it is reliable and entities should do all that they reasonably can to speed up the process necessary to make information reliable, financial information should not be provided until it is reliable.Neutrality and prudence3.36 There can also be tension between two aspects of reliability - neutrality andprudence - because, whilst neutrality involves freedom from deliberate or systematic bias, prudence is a potentially biased concept that seeks to ensure that, under conditions of uncertainty, gains and assets are not overstated and losses and liabilities are not understated. This tension exists only where there is uncertainty, because it is only then that prudence needs to be exercised. When there is uncertainty, the competing demands of neutrality and prudence are reconciled by finding a balance that ensures that the deliberate and systematic understatement of gains and assets and overstatement of losses and liabilities do not occur. Understandability3.37 It may not always be possible to present a piece of relevant, reliable and comparable information in a way that can be understood by all the users with the capabilities. However, information that is relevant and reliable should not be excluded from the financial statementssimply because it is too difficult for some users to understand.。
定性研究和定量研究的区别论文The Difference and Combination of Quantitative and Qualitative Research
The Difference and Combination ofQuantitative and Qualitative ResearchAbstract:Quantitative research and qualitative research are two basic paradigms and methods, each with different concept, nature, fundamental theory, and research process. Recently, there are more and more arguments about the tow methods and more and more scholars promote the combination of them in researches. This thesis demonstrates the differences between the two methods and also analyzes the combination of them and its significance in researches.Key words:Quantitative research, qualitative research, difference, combinationSection One The Introduction of Quantitative Research and Qualitative ResearchThere are two paradigms in social science research. One is the positivist methodology and the other is the humanist methodology. The positivist methodology simulates the natural science and uses inductive method to discover new knowledge, uses the “hypothesis-deduction” mode to test theory (Kerlinger, 1964), uses the method of mathematical statistics to analyze quantizable empirical observation and to assure the cause-and-effect relationship. In comparison, the humanist methodology derives from humanist science and emphasizes collecting, comprehending and explaining documents.Quantitative research is the specification of the positivist methodology and it emphasizes on the quantitative analysis and statistical calculation, including experimental method, quasi-experimental method and questionnaire method, etc. Quantita tive research emerged after 1940s’. The nature of quantitative research is the use of statistic model to test the relativity between the independent variable and the dependent variable, and in turn to test the hypothesis and to deduce the cause-and-effect relationship between the variables. Quantitative research is widely employed in various researches, such as social science research, environment and ecology research, energy research and so on. In practice, quantitative research requires the following process:1)to establish hypothesis and to determine the variables in thecause-and-effect relationship;2)to use the reliable tools to measure and analyze the variables;3)to test the hypothesis;4)to draw a conclusion.In comparison, qualitative research is the specification of the humanist methodology and stresses the analysis of documents and the comprehension,explanation and annotation of the objects of research, including literature analysis method, historical research, action research, observation method, interview, case analysis and ethnography, etc. Qualitative research is a explosive research and a process of discovering new things. It is analysis and research of the quality of the objects and in turn to describe the objects and reflect the characteristics and nature of the objects.Section Two The Differences of Quantitative Research and Qualitative Research2.1 The different fundamental theoriesQuantitative research and qualitative research differs from each other in their fundamental theories. Quantitative research is based on the empirical philosophy, specifically the positivist methodology which holds that the subject and the object are separate entities, that is the social phenomena are objective and out of the influence of subjective value. The researchers should take a neutral stance in researches.On the contrary, qualitative research holds that the researchers and the objects are not independent from each other and that the comprehension of the social phenomena depends on the inter-relationship between the two. Thus researches in social science can not take a neutral stance.2.2 The different purposes of researchThe quantitative research is aimed at determine the relationship influence and the cause-and-effect relationship of the objects with more attention to individual variables and elements and their relationship. It is used to find the quantitative relationship and master the quantitative characteristics and variation by measuring the social realities, experimental verification, mathematic statistics and various mathematic and statistic analysis and is also used to find the quantitative regularity by exploring truth, rules and the essenceof the objects by the quantitative relationship, .Instead, qualitative research is aimed at comprehend the social phenomena with a heavier emphasis on the opinions of the researchers and with a view to comprehend, explain and explore the social phenomena from a holistic perspective. What’s more, qualitative research is mean t to have an insight into the objects through broad and delicate researches. At the same time, it will take into consideration the view of researchers and emphasize on the explanatory comprehension of realities in order to provide some references for similar researches and to discover the inner momentums in various educational context.2.3 The different research approachesQuantitative research is based on existing theories. Then the researchers will put forward theoretical hypothesis and to collect empirical evidences to prove the hypothesis, the presupposed models and theories. It is a deductive and general-to-specific approach which highlights the verification and extension of the existing theories. The quantity in the research comes from the materials which includes quantitative relation and which are collected by the researchers. Also those materials are reached by expert measurement and mathematical analysis, and therefore they are scientific, objective and accurate. The major methods used in quantitative research include questionnaire, experiment, survey, measurement, statistic method, etc. In order to discover a fact, the researchers in quantitative research will quantize the collected materials and use data to prove their hypothesis.In qualitative research, there is not an existing theory. Instead, it is a process of constructing theories and it collects relevant materials through interview, case study, and so on. Furthermore, qualitative research emphasizes the insightful explore into and the comprehension of social phenomena, from which a proposition, conclusion or theory can be generalized. In essence, it is a general-to-specific process (Strauss and Corbin, 1998). What’s more, qualitative research requires descriptive materials in the form of words orpictures instead of the form of accurate data, which results in the inaccuracy and ambiguity of its conclusion. The major methods used in qualitative research include observation, in-depth interview, action research and case study. The researchers in qualitative research will induce the first-hand materials and transform them in to theories.2.4 The different degrees of subjectivityQuantitative and qualitative researches both pursue objectivity, but have different degrees of subjectivity. Quantitative research is based on neutral evidence and strives for objectivity. But in the construction of hypothesis, the selection of facts and the explanation and deduction of the results, it can not guarantee the completely objectivity. Rather, qualitative research focuses on understanding the world which they observed from the point of view researchers, their main research tool is the researcher himself. Thus it is more subjective and the research process can not avoid subjectivity.Section Three The Respective Characteristics and Limitation of Qualitative Research and Quantitative Research3.1 The Characteristics and Limitation of Qualitative ResearchThere are three characteristics in quantitative research:1)Repeatability. The research process and the materials should bedistained from the influence of the personal values, that is, theresearchers must be objective during the whole research. It isadvocated that delicate measuring and analyzing instruments toensure the repeatability of the research;2)Deduction. In the quantitative research, the researcher should firstput forward some hypothesis. and then they will collect materials andtransform them into data in order to verify or falsify their hypothesis.The logic method used here is deduction.3)Controllability. The quantitative research usually requires the controlof the irrelevant variables or the uses the control groups to removethe influence of the irrelevant variables, so as to discover thecause-and-effect relation of the variables accurately.The main advantages of quantitative research is simple and concise, as well as, persuasive, however there are some limitation. On one hand, branch of instruction is to some extent humanistic, but the quantitative ignore the value and significance of people and it can hardly have insight into the humanistic aspect of the branch of instruction. On the other hand, the quantitative ignores the elements that can not be quantified. It emphasizes the quantitative measurement and analysis of the instruction activities. Thus it distorts the essence of education to some extent.3.2 The Characteristics and Limitation of Qualitative ResearchThere are two characteristics of qualitative research:1)Induction. Qualitative research employs induction as its logicmethod. The researchers may or may not have a hypothesis beforethe research and they gradually construct a theoretical hypothesisduring the research. It is a top-down inductive research model;2)The characteristic of natural scene. Qualitative research advocateresearches in the real life and natural scene. The researchers spenda long time in describe and record the results in differentconditions in the natural scene from the perspective of the object.Therefore, qualitative research is also called field research or sitestudy.At the same time, there are still some limitation of qualitative research, such as difficulty in operation, the high requirement in the researchers, the influence of the subjective elements to the conclusion and the difficulty in repetition.Section Four The Relation and Combination of Quantitative Research and Qualitative Research4.1 The relation between quantitative research and qualitative researchFirstly, quantitative research is to some extent the premise and foundation of qualitative research. Any qualitative change results from quantitative changes and only enough quantitative change can lead to qualitative changes. Thus frequent research in quantitative changes makes for the discovery of qualitative changes early. We can borrow the view of dialectical materialism: everything existing objectively is the unity of quality and quantity. There is no quantity without quality in the real world, and there was no quality without quantity. A close combination of quality and quantity can constitute a complete thing. Therefore, if we want a comprehensive study of a thing, both qualitative research and quantitative research should be conducted. In the same study, using two different methods can help us draw a more comprehensive and accurate conclusion from different sides, different angles on the same problem. Through qualitative research, we can master things the inherent characteristics of different from other things; while the supplement of quantitative research helps us to grasp the scale of the existence, development, extent, speed and other properties that can be quantified. This determines that the qualitative research and quantitative research are interrelated, complementary and indivisible.Secondly the two methods can provide mutual helps and supports for each other. For example, before qualitative research, the analysis of quantitative research data can provide great help for the qualitative study; while conducting quantitative research，quantitative research data also has a strong guiding function. Also, when performing quantitative research, quantitative research data also has a strong complementary function.Thirdly, two research methods can be interspersed with the use of eachother and combined with each other. In some studies, both qualitative methods and the quantitative methods are used. Some qualitative research also inserts data to do corroboration, while most of the quantitative research needs the rational thinking in qualitative research in the processes of hypothesizing, demonstrating the cause-and-effect relationship and discovering the regularity of phenomena. Usually, before we conduct a new research project, the quantitative research often begin with the appropriate qualitative researches, and sometimes qualitative research is also used to explain the results obtained by the quantitative research.Although quantitative research and qualitative research differ from each other in many aspects, they are not mutually exclusive but complementary to some extent. Since we have clearly seen the advantages, weakness and the relation of quantitative research and qualitative research, we can combine the two approaches together to overcome those weaknesses when using one’s strengths to overcome the other’s weaknesses. For instance, words and pictures can be used to add meaning to numbers and data, and data can be used to add precision to words and pictures. As a result, the data would be more efficient, able to test hypotheses, involve contextual details and able to be generalized, which makes contribution to obtain higher credibility.4.2 The combination of quantitative research and qualitative researchIn recent years, the increasing extension of the scope of social science research as well as the increasing multidisciplinary and interdisciplinary collaborative research, provide a realistic possibility for the mutual learning and cooperation between the two research paradigms. What’s more, thanks to the rapid development of information technology and the computing and quantitative analysis capabilities, the qualitative research has become more sophisticated. The two researches are combined with each other to provide the possibility of a different paradigm methodology.At present, the combination of the combination of quantitative and qualitative researches is gradually systemized. There are three main ideas of theamong the west scholars: Ingersoll’s Mixed Model, Dentin’s Triangulations Model and Smith’s Binding Model.4.2.1 Ingersoll’s Mixed ModelIngersoll (1983:6-12) considers quantitative and qualitative researches have their own strengths and weaknesses, both of which can be combined in order to learn from each other. Ingersoll gives a continuous quantitative and qualitative research diagram, showing the three modes combine the two methods---exploring parameters, providing examples and suggesting interpretations.The first model on left end of the diagram is “exploring parameters”. In the combination of qualitative and quantitative researches, qualitative research plays the role to explore and thus helps quantitative research to determine the parameters of the problem. On the middle point of the line is the second model---“providing examples”. Both quantitative research and qualitative research are used in the model, with each playing their own effectiveness, where qualitative research is to provide examples of quantitative research and provides views of the research objects. On the right end of the line is the third model---“suggesting interpretations”, in which the results of qualitative research help to explain the meaning and significance of the results of quantitative research. The first model begins with qualitative research, and then gradually moves to quantitative research---”explore the parameters”. The third model begins with quantitative research, and then gradually moves to qualitative research---”proposed interpretation”. In the second model, quantitative and qualitative researches are conducted simultaneously.4.2.2 Triangulation Model”Triangulation”means to study the same phenomenon through different ways, data, research objects and theories. “Triangulation”was originally applied to the field of measurement and navigation and through trigonometry people can accurately measure the area of a region. Denzin (1978) was the first to use the “triangulation”to represent the combination of different ways tostudy the same phenomenon. “Triangulation” relies on the assumption that the strengths each method can compensate the weaknesses of other methods.At present, there are four “triangulation”(Denzin, 1989): 1) data, “ triangulation” , which change the use of data resources in the study involving time, space and personal ; 2) researchers “ triangulation” , the use of different researchers; 3) theory “triangulation”, which uses multiple theoretical perspectives or a variety of theoretical perspectives to interpret the results of a study ; 4) method “ triangulation”, which is used to study the same problem by using a variety of methods.The implementation procedures of “Triangulation” include “sequential model”, “parallel model”, “fused model” and “interactive model”.“Sequential model” refers that different methods have a sequence when they are used.. “Parallel model” means the simultaneous use of different methods to verify and supplement each other. “Fused model” means to include the quantitative study into observational studies, to do an overall analysis or to quantify the observations and to do statistical analysis. “Interactive model” refers to use the qualitative and quantitative methods alternately and continuously, for example, the form of one kind of research is use in the early studies , and during the research another form is then employed, and there are combination and interaction of the two methods throughout the process of the research.4.2.3 Smith’s Binding ModelSmith (1975) believes that the forms of the combination of qualitative and quantitative researches can be divided into the one-fold combination of research programs and the combination of various research programs. 1) The one-fold combination of research programs also have two types---"continuous combination" and "parallel combination". 2) The combination of various research programs includes three models: the first is to quantify qualitative case study; the second is to discuss the quantitative indicators in the form of narrative; the third is a combination of two kinds of materials without changing their original states.Through the above three models, it can be found that qualitative and quantitative researches are on the two ends of a continuum with a variety of ways to be combined, including the different combinations of different elements of the study, the alternations of the research phases, the different combinations in the same study, the different combinations in a number of studies, etc. Despite these complex combinations, the basic approach is nothing but a combination of qualitative and quantitative researches. This basic relationship is reflected in two aspects: firstly, qualitative research can help quantitative research; Secondly, quantitative research helps qualitative research.Section Five ConclusionQuantitative research and qualitative research are not mutually exclusive but interrelated and mutually reinforcing. We can make good use of their respective strengths to overcome its limitations and to complement each other by combining the two methods so as to reach a more comprehensive conclusion. In the same study, the use of these two mutually complementary research methods helps us to study the same problem from different sides and different angles so that it can come to a more comprehensive and accurate conclusions. Therefore, understanding differences between the qualitative and quantitative researches and grasping their connections between will help us to combine the two research methods together and play a powerful role in our social or educational researches.Bibliography“论定量研究与定性研究的结合及对调查研究的启示”《和谐社会与社会建设——中国社会学会学术年会获奖论文集》2007.谭跃进.《定量分析方法》北京:中国人民大学出版社. 2006.11.伍红梅，“定量研究与定性研究的比较结合”，达州职业技术学院学报. Denzin，N. K., The research act. New York: McGraw Hill, 1978.Denzin，N. K., The research act：A theoretical introduction to sociological methods.3rd edn. Englewood Cliffs, NJ: Prentice Hall, 1989.Ingersoll, B., “Approaches to combining quantitative and qualitative social support research”. 1983.Jick，T. D., “Mixing qualitative and quantitative methods: Triangulation in action”. Administrative Science Quarterly. 24:602-611, 1979.Smith，T.W., Strategies of social research: The methodological imagination.Englewood Cliffs, NJ: Prentice Hall, 1975.Tashakkon, A. and Teddlie, C., “Mixed Methodology：Combining Qualitative and Quantitative Approaches”. Thousand Oaks，London：SAGE, 1998.。
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behavior. Neutral information is free from bias so that it faithfully represents the economic
phenomena that it purports to represent. Neutral information does not color the image it communicates to influence behavior in a particular direction. Financial reports are not neutral if, by the selection or presentation of financial information, they influence the making of a
For example, information about the current level and structure of an entity’s economic resources and claims helps users to predict an entity’s ability to take advantage of opportunities and to react to adverse situations. The same information helps to confirm or correct users’ past predictions about that ability.
Qualitative characteristics and constraints of decision-useful financial reporting information
Fundamental qualitative characterina are economic resources, claims on those resources, and the transactions and other events and circumstances that change them. Financial reporting information depicts economic phenomena (that exist or have already occurred) in words and numbers in financial reports. For financial information to be useful, it must possess two fundamental qualitative characteristics— relevance and faithful representation.
represent. An omission can cause information to be false or misleading and thus not helpful to
the users of financial reports.
Neutrality is the absence of bias intended to attain a predetermined result or to induce a particular
Relevance
Information is relevant if it is capable of making a difference in the decisions made by users in their capacity as capital providers. Information about an economic phenomenon is capable of making a difference when it has predictive value, confirmatory value or both. Whether information about an economic phenomenon is capable of making a difference is not dependent on whether the information has actually made a difference in the past or will definitely make a difference in the future. Information may be capable of making a difference in a decision - and thus be relevant - even if some users choose not to take advantage of it or are already aware of it.
Relevance (cont.)
Information about an economic phenomenon has predictive value if it has value as an input to predictive processes used by capital providers to form their own expectations about the future. Information itself need not be predictable to have predictive value. Some highly predictable information may not have any predictive value for a particular purpose.
Faithful representation
To be useful in financial reporting, information must be a faithful representation of the economic phenomena that it purports to represent. Faithful representation is attained when the depiction of an economic phenomenon is complete, neutral, and free from material error. Financial information that faithfully represents an economic phenomenon depicts the economic substance of the underlying transaction, event or circumstances, which is not always the same as its legal form. A single economic phenomenon may be represented in multiple ways.
Additionally, a single depiction in financial reports may represent multiple economic phenomena.
For example, the presentation of the item called plant and equipment in a financial statement may represent an aggregate of all of an entity’s plant and equipment.
Relevance (cont.)
Information about an economic phenomenon has confirmatory value if it confirms or changes past (or present) expectations based on previous evaluations. Information that confirms past expectations increases the likelihood that the outcomes or results will be as previously expected. If the information changes expectations, it also changes the perceived probabilities of the range of possible outcomes. The predictive and confirmatory roles of information are interrelated; information that has predictive value usually also has confirmatory value.
decision or judgment in order to achieve a predetermined result or outcome. However, to say
that financial reporting information should be neutral does not mean that it should be without purpose or that it should not influence behavior. On the contrary, relevant financial reporting information is, by definition, capable of influencing users’ decisions.
For example, straight-line depreciation of plant and equipment may be highly predictable from year to year but may not be very helpful in assessing an entity’s ability to generate net cash inflows. Also, information about an economic phenomenon need not be in the form of an explicit forecast to have predictive value; it needs only to be a useful input to predictive processes of use to capital providers.