Importance The article addresses the system of qualitative characteristics of useful information presented in financial statements from the perspective of their historical development and modern requirements of users. Objectives The aim is to justify the theoretical and regulatory basis of useful financial information formation about the reporting organization. Methods The study rests on general scientific and special techniques, like dialectic, historical and systems approaches, analysis and synthesis, comparative and legal methods, content analysis of statutory documents. Results The study reveals priority trends in the development of fundamental and enhancing qualitative characteristics of useful financial information. We conceptually prove the system of qualitative characteristics of financial information for emerging countries with low investment attractiveness, insufficiently developed accounting standards and rather low financial literacy of users of accounting reports. The findings can be used to design and improve the system of national financial reporting statements, in practical work of accounting and financial services of companies, and in training process of higher educational institutions. Conclusions and Relevance Understandability of financial information is a priority property of financial statements for emerging economies. Under the conservative approach, this property should be considered as a sub-characteristics of faithful representation. Uncertainty in measurement limits both the relevance and faithful representation of information, that is, in general, its usefulness. The introduction of 'substance over form' principle requires that national regulators create a legislative platform of accounting and reporting that are independent of other branches of law (i.e. the civil law and tax law).
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