Financial accounting information- utility in decision fundamentation

Abstract

The development of accounting and, implicitly, the increase in the supply of information of this nature has been linked both by the theoreticians and by the practitioners in the field of increasing the demand of the products provided by it, coming from some users whose information needs depend on the economic, political, legal, social and cultural context in which it operates. Prior to presenting the financial and accounting information and its role in the entity's sustainable development, we consider it necessary to clarify some aspects of information in general and financial-accounting information in particular. Explaining the notion of information implies the necessity of a discussion between terms of data and information, which, many times, is confused in practice. Data are represented by words, figures, or signs that describe or reflect the most diverse facts and situations, forming the raw material on which the information is based. The information appears as a result of a complex process whereby certain data are attributed to the meaning of the state or dynamics of an object, phenomenon or event, in formal processing procedures. In a more concrete definition of information, it appears as a "news" or "message" about facts and events of any kind that must be understood, used and transmitted to facilitate the achievement of the goal. JEL: M41, M49