An accounting concept that calls for accounting information (as reflected in the financial reports) to be available in such a way and time that it can be used by a decision maker before it loses its value. Information presented in the financial statement must be relevant to all users, as relevant information can make a difference in decision making.

Relevance involves both the quality/ materiality and timeliness of financial information. By nature, relevant information is useful to the end users in their economic decisions.