Relevance principle definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Relevance principle can be defined as: Information system principle prescribing that its reports be useful, understandable, timely, and pertinent for decision-making. Relevance principle describe the practical needs of the financial statements. Factors that make the financial statements relevant include that they are timely and not too old, that they are understandable and put in a format that can be useful.
