THE CONCEPTUAL AND REGULATORY FRAMEWORK FOR FINANCIAL REPORTING

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Revision question on IASB conceptual framework and qualities of financial information

The IASB’s conceptual framework for financial reporting states that the qualitative characteristics of financial statements are the attributes that make financial information useful.

Required: Explain the fundamental qualitative characteristic Relevance”.                               Read the rest

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 … Read the rest