Relevance

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

• Conceptual framework
• Faithful representation
• Useful financial information