The framework identifies two aspects to financial information that are relevant. These are: a. predictability and verifiability, b. neutrality and verifiability, prudence and neutrality d. verifiability and understandability, Finishi Various researchers have indicated that when managers receive bonuses based on accounting performance they will: ensure income is minimised in a year they will not reach their performance target so that any profits can be recognised in later periods. b. undertake long-term research and development projects if they are near to retirement make every effort to maximise profits in any given period. d. adopt projects with low initial returns to ensure long-term success The agency relationship a involves delegating authority, b. can lead to a loss of efficiency C can only work if principals are paid a bonus d. can lead to a loss of efficiency and involves delegating authority