The enhancing qualitative characteristics, such as comparability and timeliness must be applied first before the characteristic of relevance in order to provide the most usefulness to the decision makers.

Question

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Relevance is considered a fundamental qualitative characteristic that must be present for financial information to be useful. Enhancing qualitative characteristics like comparability and timeliness are supplementary and are applied to improve the decision-usefulness of information that is already relevant.

The Enhancing Qualitative Characteristics, Such as Comparability and Timeliness Must