Relevance
From ACT Wiki
Financial reporting - accounting concepts.
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.
