Constraints on relevant and reliable information

The following are the constraints on relevant and reliable information:

• Timeliness

• Balance between benefit and cost

• Balance between qualitative characteristics

• True and fair view/fair presentation

Timeliness

Management may need to balance the relative merits of timely reporting and the provision of reliable information.

Balance between benefit and cost

The benefits derived from information should exceed the cost of providing it.

Balance between qualitative characteristics

Generally, the aim of financial statements is to achieve an appropriate balance among the characteristics in order to meet the objective of financial statements.

True and fair view/fair presentation

Financial statements are frequently described as showing a true and fair view of, or as presenting fairly, the financial position, performance and changes in financial position of an entity.

Source:  IFRS-PFRS