This paper discusses the revised IASB conceptual framework, particularly the qualitative characteristics within the framework. Characteristics comprises of two elements;
• Relevance: Financial information is relevant if it is able to make a difference in users' decisions, that is to say if it has predictive value, confirmation or both;
• Faithful Representation: The faithful representation of economic phenomena implies that the relevant phenomena are presented so faithful, that is to say in a comprehensive, neutral and without error.
To be useful, information must be both relevant and faithfully represented. The cost constraint is needed ...