Fasb Joint Review Paper

The IASB/FASB joint review conceptual framework states that there are two fundamental characteristics which are relevance and faithful representation and in addition there are four enhancing characteristics which are timeliness, verifiable, comparable and understandability which enhance the decision usefulness of financial information. For information content to be relevant it must have the ability to influence the economic decisions of users and help users to evaluate or assess past, present or future events which is known as predictive value. It also could help users to confirm their past evaluations which are known as confirmatory value. Another fundamental qualitative characteristic is faithful representation; it should reflect the commercial