Relevance
Information must be relevant to the decision-making needs of users. Information is relevant if it can be used for predictive and/or confirmatory purposes.
It has predictive value if it helps users to predict what might happen in the future.
It has confirmatory value if it helps users to confirm the assessments and predictions they have made in the past.

The relevance of information is affected by its materiality.
Information is material if omitting it or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity.
Materiality is an entity-specific aspect of relevance based on the nature or magnitude (or both) of the items to which the information relates in the context of an individual entity’s financial report.

Therefore, it is not possible for the IASB to specify a uniform quantitative threshold for materiality or predetermine what could be material in a particular situation.

Faithful representation
Financial reports represent economic phenomena (economic resources, claims against the reporting entity and the effects of transactions and other events and conditions that change those resources and claims) by depicting them in words and numbers.
To be useful, financial information must not only represent relevant phenomena, but it must also faithfully represent the phenomena that it purports to represent.
A perfectly faithful representation would have three characteristics. It would be:

• complete – the depiction includes all information necessary for a user to understand the phenomenon being depicted, including all necessary descriptions and explanations.
• neutral – the depiction is without bias in the selection or presentation of financial information; and
• free from error – where there are no errors or omissions in the description of the phenomenon, and the process used to produce the reported information has been selected and applied with no errors in the process.

Comparability is the qualitative characteristic that enables users to identify and understand similarities in, and differences among, items.
Information about a reporting entity is more useful if it can be compared with similar information about other entities and with similar information about the same entity for another period or another date.
Consistency is related to comparability but is not the same. Consistency refers to the use of the same methods for the same items, either from period to period within a reporting entity or in a single period across entities. Consistency helps to achieve the goal of comparability.