Which qualitative characteristic ensures that financial information can be depended upon?

Reliability is a qualitative characteristic that ensures financial information can be depended upon. This characteristic means that the information presented in financial statements is accurate and truthful, representing the underlying transactions and events it purports to depict. Reliable information allows users of financial statements to trust that the presented data reflects the actual financial condition and performance of the entity, leading to informed decision-making.

In financial reporting, reliability encompasses several elements, such as freedom from bias and error, verifiability of information, and faithful representation of the financial position and performance of the organization. Users rely on this characteristic to assess the credibility of the financial statements and to feel confident that their decisions based on this information will be sound.

Other characteristics, while important, serve different purposes. Understandability refers to how easily users can comprehend the information, relevance relates to the ability of the information to influence users' decisions, and comparability allows users to identify similarities and differences between different entities or periods. Each of these other characteristics plays a vital role in the overall utility of financial information, but it is reliability that primarily ensures that the information can be trusted.