Final answer:
The IASB's Conceptual Framework states that financial information is relevant if it has predictive value and confirmatory value, which is answer C: 1 and 4 only. These aspects of information help users to forecast future events and confirm past expectations, respectively.
Step-by-step explanation:
According to the IASB's Conceptual Framework, financial information is relevant and capable of making a difference in decisions if it possesses predictive value and confirmatory value.
Therefore, the correct answer is C: 1 and 4 only, meaning financial information must have predictive value and confirmatory value. Predictive value allows users to make forecasts about future events, whereas confirmatory value helps them confirm or adjust prior expectations.
Historical value may inform about past transactions, and comparative value is also useful for analyzing trends, but these are not explicitly mentioned in this context within the Conceptual Framework.
In a broader sense, information is essential in various aspects of society, playing a role in political, commercial, and economic decisions. It enables individuals and businesses to use data and facts to make informed choices, a skill that is increasingly vital in the workforce.
From determining public preferences to allocating scarce media resources efficiently, the ability to interpret information is fundamental in the world of economics.