Information is useful to investors and creditors if it helps them assess the amounts, timing, and uncertainty of prospective cash flows. Useful cash flow information includes information about economic resources, the claims to those resources, and the effects of transactions, events, and circumstances that cause changes in resources and claims. Here is an overview. Overriding objective is decision usefulness. Primary qualities of useful information are relevance and reliability.
Constraints are cost effectiveness and materiality.
Here is an overview. Recognition an item should be recognized in the basic financial statements when it meets certain criteria. The monetary unit used in financial statements is nominal units of money without any adjustment for changes in purchasing power. Different attributes are used to measure different financial statement elements. There are important assumptions that underlie fundamental principles.