The textbook provides three key qualitative characteristics of financial information (relevance, reliability, and consistency). Describe one of these three terms and explain its influence on the financial statements.

DQ1 The textbook provides three key qualitative characteristics of financial information (relevance, reliability, and consistency). Describe one of these three terms and explain its influence on the financial statements. Include a numerical example to prove your points. Participate in follow-up discussion by reading classmates’ posts and providing an example on the significance to the user if the qualitative characteristics are not followed in the preparation of financial statements.

DQ2 As mentioned in Chapter 3 of the textbook, International Financial Reporting Standards (IFRS) are generally utilized by non-U.S.-based companies. Both IFRS and GAAP standards follow core principles, such as asset valuation, revenue recognition, and the matching principle. However, the standards may approach financial reporting differently. Review the “Why Global Accounting Standards?” page of the International Financial Reporting Standards (IFRS) Foundation website at https://www.ifrs.org/use-around-the-world/why-global-accounting-standards and select an item to summarize. As part of your post, provide an opinion on whether U.S. companies should converge to the global standards. Participate in follow-up discussion by trying to professionally persuade classmates who have a different opinion on convergence and why your logic is more appropriate for businesses.