The Conceptual Framework suggests that the relevance characteristic outweighs the faithfully represented characteristic if the financial statement is to be rendered useful.

Question

Quizplus · Accepted Answer

The Conceptual Framework for Financial Reporting states that both relevance and faithful representation are equally important for financial information to be useful. Neither characteristic outweighs the other.

The Conceptual Framework Suggests That the Relevance Characteristic Outweighs the Faithfully