Relevance
Relevance is associated with information that is timely, useful, has the capability of making a difference in the economic decisions of users by helping them evaluate the effect of past and present events on future net cash inflows (Predictive Value) or confirm or correct previous evaluations (Confirmatory Value), even if it is not now being used.
The predictive and confirmatory values of information are interrelated. The information has predictive value if users use it to take advantage of opportunities and its ability to react to adverse situation, the same information plays a confirmatory role in respect of past prediction.
Reliability
To be reliable, information has to be verifiable, free from material error and bias (Neutral). The information must represent faithfully, as it meets the recognition criteria while complete within the bounds of materiality and cost, to prevent information to be false or misleading which will result in unreliable, which leave no room for the substance over form.
Prudence does not have quality of reliability for example it overstated or understated the assets or liabilities, the financial statements would not be neutral. It only allow when there is uncertainty, it have to reconciled with the neutrality to find the balance that ensures the understated and overstated don’t occur.
Comparability
Is an important characteristic of financial information as it enables users to identify similarities in and differences, able to compare information over time in order to identify trends in its financial position and performance and changes in the positions. In order to do so there must have consistency in the use of the accounting methods and users able compare companies in differe ...