Which principle relates to the inclusion of information that can impact decision-making in financial reports?

The principle that relates to the inclusion of information that can impact decision-making in financial reports is materiality. Materiality is a concept in accounting that signifies the importance of certain information to users of financial statements. It posits that all information that could influence the decisions of users should be disclosed, while immaterial information may be omitted to keep reports clear and concise.

For example, if a company incurs an unusual loss or gain that could significantly affect its financial position, it is considered material and should be presented in its financial reports. This principle ensures that stakeholders, such as investors, creditors, and management, have a complete and accurate understanding of the company's financial health, which is essential for making informed decisions.

The other principles, while important in their own respects, do not specifically focus on the necessity of including information based on its impact on decision-making. Consistency relates to using the same accounting methods over time, comparability ensures that financial statements can be compared across different entities, and reliability emphasizes the accuracy and dependability of financial information. However, none of these principles directly address the necessity of disclosing information that could affect decisions made by users of financial reports.