Useful financial information

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Financial reporting - accounting concepts.

Useful financial information is information likely to be useful to users in making decisions about a financial reporting entity on the basis of information contained in its financial report.

Under the IFRS Conceptual Framework it is fundamental that financial information:

  • Is relevant; and
  • Faithfully represents the substance of what it is supposed to be representing.

When both relevance and faithful representation are achieved, then the following will further enhance the usefulness of the financial information:

  • Comparability
  • Verifiability
  • Timeliness
  • Understandability

See also