In the International Accounting Standards Board's (IASB's) Conceptual Framework, an ingredient of a fundamental qualitative characteristic is understandability.

Question

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Understandability is an enhancing qualitative characteristic, not a fundamental one, according to the IASB's Conceptual Framework. Fundamental characteristics are relevance and faithful representation.

In the International Accounting Standards Board's (IASB's) Conceptual Framework, an Ingredient