Which of the following is NOT a key principle of effective financial reporting?

Confidentiality is not considered a key principle of effective financial reporting. While confidentiality is an important aspect of financial management and involves protecting sensitive financial information from unauthorized access, it does not directly contribute to the core principles that govern how financial reports are prepared and presented.

Accuracy is crucial because it ensures that the financial information provided is correct and reflects the true financial position of an entity. Timeliness is vital as it emphasizes the importance of providing financial information promptly to users who need it for decision-making. Consistency relates to the need for financial reports to be prepared using the same accounting methods over time, allowing for comparability across reporting periods.

These principles support transparency and enhance the credibility of financial reporting, which is essential for stakeholders who rely on financial information to assess performance and make informed decisions.