I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Faithful representation

. Financial reports represent economic phenomena in words and numbers. To 

be useful, financial information must not only represent relevant phenomena but must faithfully 

represent the substance of the phenomena that it purports to represent.'    

 

(Conceptual Framework for Financial Reporting 2018, para. 2.12)  

 

To be a faithful representation information must be complete, neutral and free from error.  

A complete depiction includes all information necessary for a user to understand the phenomenon being 

depicted, including all necessary descriptions and explanations. 

BPP Tutor Toolkit Copy

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CHAPTER 3  

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  THE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION