Relevance of financial information – meaning

The IASB Framework for the Preparation and Presentation of Financial Statements (IASB Framework) says that information is relevant when it influences the economic decisions of users by helping them evaluate past, present or future events or confirming, or correcting, their past evaluations. For accounting information to be relevant, accounting information must be capable of making a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct expectations, and goes on to define event and outcome.

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  1. Pingback: Projection - meaning. - ACCA ONLINE ACCOUNTING TEACHER

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