The pertinence of information furnished by financial situations

Abstract

In contemporary economy, which undergoes perpetual transformation, spectacular changes occur within a short time span, on the basis of financial decisions made by using accounting information and relying on its accuracy and relevance. However, if this information proves to be incongruous with the economic events that generated it or is misunderstood, the decisions’ result will be far from what is expected. But what is information in economic terms? How can we distinguish between information and non-information? How can we know that we are really informed? These are questions that are featured in many national and international conferences. In our opinion, information represents a set of data that determines the change of the probabilities expected by the beneficiary after future events take place. The information’s value depends on the impact it has on future decisions, which results into a high degree of subjectivity as to its interpretation and use. Cost is also an important element in choosing alternative sources for information. From an accounting point of view, information is valuable if it is of use to those who possess it in a form of decision-making that leads to the expected results