Relevance and faithfully represented characteristics are placed as overriding qualities of financial statements over other qualitative characteristics

Question

Quizplus · Accepted Answer

According to the Conceptual Framework for Financial Reporting issued by the International Accounting Standards Board (IASB), relevance and faithfully represented characteristics are considered the primary qualities of financial statements, and they should be given overriding importance over other qualitative characteristics such as comparability, verifiability, and timeliness. This means that financial statements must provide information that is relevant to the decision-making needs of users and represents faithfully the underlying economic events and transactions.

Relevance and Faithfully Represented Characteristics Are Placed as Overriding Qualities