CIMA BA3 · Chapter 2 · Question 1 of 8
According to the IASB Conceptual Framework, what are the two fundamental qualitative characteristics of useful financial information?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Relevance and faithful representation
Explanation
The two fundamental qualitative characteristics are relevance and faithful representation. Comparability, verifiability, timeliness and understandability are enhancing characteristics. Prudence supports neutrality, and consistency helps to achieve comparability, but neither is a fundamental characteristic.
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