ICAEW AF · Chapter 1 · Question 1 of 11
Under the IFRS Conceptual Framework for Financial Reporting, which TWO qualitative characteristics are described as fundamental?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Relevance and faithful representation
Explanation
The Conceptual Framework identifies relevance and faithful representation as the fundamental qualitative characteristics of useful financial information. Comparability, verifiability, timeliness and understandability are enhancing characteristics that improve the usefulness of information that is already relevant and faithfully represented.
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