Relevance and faithful depiction are the two primary characteristics of information that is valuable.
Faithful representation refers to the financial accounts accurately reflecting business financial transactions. Most users lack the time or knowledge necessary to assess the information's factual accuracy. As a result, financial statements need to be accurately representative.
One of the two essential qualitative components of effective financial statements is faithful depiction. Another is appropriateness. The trustworthiness of the data in the financial accounts is improved by both of these crucial characteristics.
Relevance indicates that information must be both confirming and predictive in nature. Users are able to assess prior company situations and forecast future performance.
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