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

 

3

   The qualitative characteristics of financial information 

The Conceptual Framework states that qualitative characteristics are the attributes that make the    

information provided in financial statements useful to users.  

The two fundamental qualitative characteristics are relevance and faithful representation. 

Enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability. 

3.1 Relevance 

Only relevant information can be useful. Information should be released on a timely basis to be relevant 

to users.  

'

Relevance

. Relevant financial information is capable of making a difference in the decisions made by 

users… Financial information is capable of making a difference in decisions if it has predictive value, 

confirmatory value or both.' 

(Conceptual Framework for Financial Reporting 2018, paras. 2.6–7) 

 

 EXAM FOCUS POINT 

The ACCA examining team commented that questions on the Conceptual Framework have been 

particularly well answered in past exams. 

BPP Tutor Toolkit Copy

---