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It assists them in making predictions about future situations and in forming expectations, or it plays a confirmatory role in respect of their past evaluations Financial information may be relevant because of its nature, itsnature and magnitude, or because of its magnitude in relation to its nature. Additional guidance on relevance is provided in SAC 3.
The financial report has reliable financial information which faithfully conveys to users theunderlying transactions and other events that have occurred. For financial information to be reliable, it needs to be free from bias. Reliable financial information does not lead users to conclusions that serve particular needs, desires or preconceptions of the preparers of financial reports...
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