Final Answer:
Timeliness and Understandability are examples of characteristics that complement the fundamental characteristics of "relevance" and "faithful representation" in IFRS.
Step-by-step explanation:
In financial reporting, relevance and faithful representation are foundational principles, ensuring that financial information is meaningful and reliable. Complementing these, timeliness is crucial. Timely information is more relevant, aiding users in making informed decisions. Delays can diminish the usefulness of financial reports. For instance, up-to-date information about a company's financial position helps stakeholders navigate changing economic landscapes.
Understanding financial statements is equally important. Therefore, the characteristic of understandability is emphasized in IFRS. Financial reports must be clear and comprehensible to a diverse audience, including investors, creditors, and analysts. This ensures that users can interpret and use the information effectively. Overall, the combination of relevance, faithful representation, timeliness, and understandability enhances the quality and utility of financial reporting, aligning with the objectives of IFRS to provide information that facilitates informed decision-making.