The constraints on financial reporting identified under the IASB Framework are:

Question

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The IASB Framework identifies cost versus benefit and materiality as constraints on financial reporting. Cost versus benefit means that the cost of providing information should not exceed the benefits it provides. Materiality means that only significant information should be disclosed to ensure that the financial statements are not cluttered with immaterial details. While timeliness, neutrality, and understandability are important characteristics of financial reporting, they are not considered constraints under the IASB Framework.

The Constraints on Financial Reporting Identified Under the IASB Framework