Qualitative Characteristics of Financial Information

Section A MetroWater, a public utility company, is finalizing its annual report. The chief accountant wants to ensure the financial information meets the qualitative characteristics defined by the IASB Conceptual Framework. Which TWO of the following are classified as ENHANCING qualitative characteristics of financial information?

Section A Quantum AI Ltd, a tech startup, has developed a proprietary algorithm. The directors want to value this algorithm at $10 million in the financial statements based on their own internal estimates of future revenue, despite having no active market or historical cost data. Which fundamental qualitative characteristic of financial information would be most compromised if this valuation is included?