Final answer:
Neutrality is a characteristic that applies to both relevance and faithful representation in the conceptual framework, ensuring unbiased financial information for users.
Step-by-step explanation:
According to the conceptual framework, neutrality is a characteristic of both relevance and faithful representation. Neutrality refers to the practice of being impartial and without bias, ensuring that financial information is presented fairly and not influenced to achieve a predetermined outcome. This idea of value neutrality is critical as it helps users of financial statements make informed decisions without being misled. In the context of financial reporting, both the relevance of information — its capacity to influence decisions — and its faithful representation — accuracy in depicting economic reality — are enhanced by neutrality.