In the International Accounting Standards Board's (IASB's) Conceptual Framework, a fundamental qualitative characteristic is
A) Materiality.
B) Faithful representation.
C) Decision usefulness.
D) Neutrality.

Question

Quizplus · Accepted Answer

The fundamental qualitative characteristic in the IASB's Conceptual Framework is faithful representation, which means financial information should be complete, free from error, and accurately represent the underlying economic events. Materiality, decision usefulness, and neutrality are other qualitative characteristics, but not the fundamental one.

In the International Accounting Standards Board's (IASB's) Conceptual Framework, a Fundamental