Accounting Basis: Feedback Value

because

Any useful accounting information feedback, such as information about the former economic resources (assets) or the status quo of debt, or the information provided by the past achievements of the enterprises concerned, will reduce uncertainty. It will affect the users (existing or potential investors, credit providers, etc.) and their original expectations, the decision-making behavior and the implementation process: or prove their correctness, help them to enhance or increase the confidence and intensity of the implementation of the act, and ultimately achieve the desired goal; or indicate that their original fear of deviation, improper behavior or adverse effects in the implementation process have made it difficult to achieve the desired value of variation, prompting the decision-makers to adjust their expectations, changing behavior patterns and methods, or even stopping the behavior process, so as to achieve the desired goals or minimize the adverse effects of the original decisions.

That is, an accounting data or statement, which is consistent with its purpose of reflecting accounting objects (statements and dynamics).

The feedback value of accounting information is closely related to the predictive value and often plays a role at the same time.

Because information about completely determined results or facts is meaningless to the result or fact itself, which is meaningless to the result or the fact itself. Only when it is used to predict and adjust the future results that may lead to related matters or processes, can the feedback value of accounting information be truly realized, that is, the feedback value of accounting information often contains the expectation that accounting information can lead to future decision making differences.

Moreover, the feedback value of accounting information is usually one of the prerequisites for predicting value.

Besides, the value of feedback from accounting information also depends on the following factors:

(1) the facticity of accounting information, that is, an accounting data or description, which is consistent with the accounting objects it intends to reflect.

(2) the timeliness of accounting information, that is, accounting information is owned by decision maker before it loses its decision-making function.