The qualitative characteristics should be applied in which order?
A) relevance, comparability and then faithful representation
B) faithful representation, relevance, and then comparability
C) Timeliness, faithful representation, and then comparability
D) relevance, faithful representation and then comparability

Question

Quizplus · Accepted Answer

The qualitative characteristics of financial information, according to the conceptual framework, prioritize relevance and faithful representation as the fundamental qualities. Relevance ensures the information makes a difference in decision-making, while faithful representation ensures the information accurately reflects the economic phenomena it purports to represent. Comparability, while important, is considered an enhancing qualitative characteristic, applied after ensuring relevance and faithful representation.

The Qualitative Characteristics Should Be Applied in Which Order