What makes financial information relevant?

Financial information is considered relevant when it can influence the decision-making process of users, such as investors or management. This relevance is typically determined by the information's capacity to affect predictions about future outcomes or to confirm or correct past evaluations. Timeliness, materiality, and the specific context in which the information is presented also play crucial roles in enhancing its relevance. Ultimately, relevant financial information helps stakeholders make informed choices that align with their financial goals.