Understanding Relevance in IFRS Framework

Medium Financial Reporting Standards Ifrs Framework

According to the IFRS Framework, one of the fundamental characteristics of financial reporting is relevance. Relevance is defined in the context of financial statements as the capacity to make a difference in users' decisions. When considering the definitions and characteristics stated in IFRS, which of the following statements accurately reflects a component of relevance?

Relevance means that financial information is free from material error and bias.

Relevance means that financial information must be complete and presented fairly.

Relevance implies that financial information should be capable of influencing the economic decisions of users.

Hint

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