Relevance
Relevant information is capable of making a difference to users' decisions through predictive value, confirmatory value or both. Information may help predict future outcomes, confirm or change earlier expectations, or do both. For example, actual sales compared with an earlier forecast can inform a revised forecast. Relevant information must also faithfully represent what it purports to represent to be useful. A material omission can make otherwise relevant information misleading to its intended users.
Worked example
A breakdown of recurring and unusual income can help users assess future performance.
Common mistake
Relevance is distinct from faithful representation and timeliness; materiality is entity-specific relevance.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
