Understandability: The Most Important Metric Youre Not Tracking

An implication is that accounting researchers and policy-makers should not be content with merely trying to improve the relevance of accounting disclosures. Resources must also be directed toward the development and perfection of methods designed to enhance the reliability of accounting measurements. Reliability may suffer when an accounting method is changed to gain relevance, and vice versa.


You are able to get the exact data you need to comprehend what’s going on, without the pain of getting there and twisting your brain into circles. Debugging can befrustrating and long in the best of times(and that’s counting the times when the debugging gods are smiling down upon you). In our experience, the only way to truly make debugging a breeze is by having understandability into your code. Without knowing where the bug originated, why, the root cause, and what affects it- well, you really can’t fix it. Present the system by the use of a predefined set of sources in order to cover all the fundamental information. Leave nothing to the dev’s own imagination, especially such important items.

Synonyms of understandable

As stated earlier FASB Concept No. 2 recognises relevance and reliability as primary qualitative characteristics and other remaining characteristics as ingredients of these primary qualities. Almost always, the relative rather than the absolute size of a judgment item determines whether it should be considered material in a given situation. The concept of materiality permeates the entire field of accounting and auditing. The materiality concept implies that not all financial information need or should be communicated in accounting reports—only material information should be reported. Instead of enforced uniformity, accounting standards should be developed which would be best or preferred methods in most cases. Such accounting standards should be followed unless there is a compelling reason why they will not provide a correct and useful reflection of business operations and results.

We briefly revisit existing work on notions of causality, counterexample-based causality, certification, and feature-oriented systems. Understandability refers to a specific mode of communication between employers and employees that is compatible in terms of mutual expression of common goals, interests, and values while reflecting company standards and ideals. Every industry uses formalized language, and abbreviations, that creates a sense of general recognition among company members to effectively, and productively, execute duties, responsibilities, and tasks as required.

Confusion Matrix, Accuracy, Precision, Recall, F1 Score

Next, try to make the system as small as possible, since smaller systems by nature are less complex and easier to understand. Systems can be reduced from the “top” by focusing on the business requirements that truly matter, while leaving out, at least temporarily, requirements that are not mandatory. Systems can often be reduced from the “bottom” as well, by using higher-level abstractions, such as new programming languages, advanced frameworks, and modern databases. Regardless of its source, complexity hurts engineers’ ability to understand and effectively change the software as needed. This problem is usually aggravated by the knowledge loss caused by personnel turnover. The preceding concepts do not mean that complex information should be excluded from the financial statements.

Unfortunately, without intimate access to implementation details, this characteristic is very hard to determine. The qualitative characteristics of accounting information are important because they make it easier for both company management and investors to utilize a company’s financial statements to make well-informed decisions. First of all, XAI assists in ensuring that the training dataset, as well as the trained model, is devoid of any bias while taking decisions. Besides, XAI would help in debugging of learning models as well as draw attention to the various adversarial perturbations which would lead to wrong predictions or decisions. More importantly, XAI would give an insight into the causality established by the learning model as well as the reasoning of the model. One thing that should be noted is that by making the learning models more complex, its interpretability decreases and performance increases; hence there is an inverse relationship between performance and interpretability of a learning model.


Another factor in materiality judgments is the degree of precision that is attainable in estimating the judgment item. The amount of deviation that is considered immaterial may increase as the attainable degree of precision decreases. For example, accounts payable usually can be estimated more accurately than can contingent liabilities understandability meaning arising from litigation or threats of it, and a deviation considered to be material in the first case may be quite trivial in the second. It is, above all, the predetermination of a desired result, and the consequential selection of information to induce that result, that is the negation of neutrality in accounting.

  • •Changeability and Extensibility—When an abstraction “exposes” or “leaks” implementation details through its public interface, the clients of the abstraction may depend directly upon its implementation details.
  • Economic decision requires making choice among possible courses of actions.
  • The pursuit of one characteristic may work against the other characteristics.
  • Understanding and knowledge are both words without unified definitions.
  • These changes are consistent with the UNSAS qualitative characteristics of understandability, relevance, reliability , and comparability over time.
  • They are usually architecturally significant requirements that require architects’ attention.

If a change in accounting practices or procedures is made, disclosure of the change and its effects permits some comparability, although users can rarely make adjustments that make the data completely comparable. Financial reports of different firms are not able to achieve comparability because of differences in business operations of companies and also because of the management’s viewpoints https://www.globalcloudteam.com/ in respects of their transactions. Also, because there are different accounting practices to describe basically similar activities. Because of those variations, verifiability or representational faithfulness components of reliability, might diminish. Whether there is a net gain to users of the information obviously depends on the relative weights attached to relevance and reliability .

Enhancing (Secondary) Qualitative Characteristics

If there is no “Not Applicable” option, you must score the item 0 or 1 . Rate an item “Agree” when a characteristic occurs throughout a material, that is, nearly all of the time (80% to 100%). Just an essential daily newsletter trusted by 175,000+ smart people who want to understand the world, one day at a time. Conservatism is generally referred to as a convention that many accountants believe to be appropriate in making accounting decisions. If assets are valued at cost in some periods, and at replacement cost in others, the firm’s earning power may be distorted, especially when the difference in cost and replacement cost is significant over a period of time. Information, if comparable, will assist the decision-maker to determine relative financial strengths and weaknesses and prospects for the future, between two or more firms or between periods in a single firm.


However, those are not the use cases software engineering teams are tasked with, and those tools were never meant to help them. Understandability is the concept that a system should be presented so that an engineer can easily comprehend it. The more understandable a system is, the easier it will be for engineers to change it in a predictable and safe manner. Nowhere is this more apparent than in software engineering, where a developer’s daily job is to modify, adapt, tweak, or even remake the systems they are responsible for. The reader should be able to easily locate cross-referenced information within the financial statements. This means that all supporting schedules should be identified with a footnote number or letter, with this identifier listed in the main financial statements.

Common subsets

The camp directors have mixed feelings but understand there are times the outdoors won’t cut it. By submitting this form, you acknowledge that your information is subject to The Linux Foundation’s Privacy Policy. As we all know, with great power comes great responsibility, and it’s not only Spider-Man who feels the pressure from that. However, in the case of developers, we’d like to change that saying (sorry, Uncle Ben!) to say that with great power comes great limitations.


QCon San Francisco International Software Conference returns this October 2-6. More than 1000 software professionals will join together and learn about the emerging trends they should pay attention to in 2023, how to adopt them, how to avoid pitfalls, and how to embrace the best practices. With the rise of Software as a Service and other new software delivery paradigms, many organizations are practicing total ownership of software, empowering engineers to take responsibility for the application throughout its lifecycle. Denise Yu discusses why one might be feeling unheard at the end of some conversations today, and presents some tools to engage with colleagues and facilitate better conversations. Thomas Betts discusses thriving in today’s fast-paced tech landscape using good communication and collaboration with teams. For probabilistic and dynamic feature-oriented systems, Dubslaff et al.

List of system quality attributes

Structured Query Language is a programming language used to interact with a database…. The Structured Query Language comprises several different data types that allow it to store different types of information… Growing use of IFRS across the globe facilitate comparison and understandability of between companies operating in different jurisdictions. When dealing with safety-critical systems, the acronym reliability, availability, maintainability and safety is frequently used. Together, reliability, availability, serviceability, usability and installability, are referred to as RASUI. Please help improve this article by adding citations to reliable sources.