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FASB Conceptual Framework

Lesson
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The Financial Accounting Standards Board (FASB) has created a conceptual framework which lays out the broad goals of its accounting regulations.

The system divides various focuses into two groups: quantitative and qualitative aspects.

Question
As an auditor, you're trying to make sense of a firm's finances, but you're having trouble figuring something out.

This is what you've been told:

  • An accountant explained that one of the most important characteristics in accounting is relevance.
The key concept of relevance belongs to which of FASB's Conceptual Framework's aspects?
Answer
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👉 Answer:

  • Relevance is a enhancing qualitative characteristic.
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