Which statement best describes the characteristics of relevant information?

Relevant information is characterized by its ability to consistently impact user decisions. This means that the information provided should be directly applicable to the decision-making processes of users, enabling them to evaluate past, present, or future events and to help them make informed choices. The utility of relevant information lies in its capacity to influence decisions effectively, which is crucial in business environments where financial reporting plays a significant role.

The aspect of relevance implies that information should assist users in assessing the outcomes and predicting future events, making it pertinent to their interests and needs. When information is relevant, it is more likely to be considered during decision-making processes, thus enhancing the utility and effectiveness of financial reporting.

In contrast, while verifiability, historical nature, and completeness are important qualitative characteristics of financial information, they do not directly define relevance. Information can be verified but may not necessarily impact decisions if it does not pertain to the user's context or needs. Similarly, historical information may not always influence future decisions, and completeness, while important, does not single-handedly define relevance either.