Faithful representation

Financial reporting - accounting concepts.

Under the IFRS Conceptual Framework, faithful representation means representation of the substance of an economic phenomenon instead of representation of its legal form only.

A faithful representation seeks to maximise the underlying characteristics of completeness, neutrality and freedom from error.

Information must be both relevant and faithfully represented, if it is to be useful.

See also

• Conceptual framework
• Neutrality
• Relevance
• Substance over form
• Useful financial information