Explain the concept of relevance.

A.

Relevance is secondary to confirmatory value. Relevant information is capable of making a difference in decision making because of its predictive value or materiality.

B.

Relevance is secondary to faithful representation. Financial information is relevant if it is capable of making a difference in decision making by exhibiting confirmatory value.

C.

Relevance is a fundamental characteristic of useful financial information. Relevant information is capable of making a difference in decision making because of its predictive value, confirmatory value and materiality.

D.

Relevance is a fundamental characteristic of useful financial information. Relevant information is capable of making a difference in decision making only by exhibiting materiality.