Relevance

From ACT Wiki
Jump to: navigation, search

Financial reporting.

Under the IFRS Conceptual Framework, relevant financial information means information that is capable of making a difference in the decisions made by users.


Financial information is capable of making a difference in decisions if it has:

  • Predictive value
  • Confirmatory value or
  • Both.


The predictive value and confirmatory value of financial information are interrelated.


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


See also