Understandability

Understandability,

Definition of Understandability:

  1. A principle of accounting which states that a companys financial information should be presented in such a way that a person with a reasonable knowledge of business and finance, and the willingness to study the information, should be able to comprehend it. This principle is included in the Accounting Standards Boards Statement of Principles.

Meaning of Understandability & Understandability Definition