Two qualitative characteristics that the financial statement may lack are:

1. Comparability:
   • Explanation: The financial statements lack comparability because no previous year’s figures or budget information are presented alongside the current data. This makes it difficult to compare the performance year-over-year or against budget expectations.
2. Timeliness:
   • Explanation: The financial statement relates to the year 2014 but was prepared in 2016, which means the information is outdated. Timeliness is crucial as it affects the usefulness of the financial information. Reports should be prepared and presented as soon as possible after the end of the reporting period.
3. Understandability:

• Explanation: For the financial statement to be understandable it should
  contain notes including the disclosure of accounting policies. However, the
  financial statement prepared does not contain any notes or disclosure in
  accounting policies therefore it lacks understandability.