Is there a contradiction between the reliability and relevance of the quality of accounting informat

Reliability, comparability. Reliability means that accounting information must be objectively existing and verifiable; Relevance refers to the fact that accounting information is associated with the problem that the information user wants to solve, that is, it is related to the decision made by the user and has the ability to influence the decision. From the definition of these two terms, it is not difficult to see that reliability is also the basis of relevance, and only on the basis of reliability can correlation in the true sense be realized.

Not contradictory. The Financial Accounting Standards Board (FASB) defines reliability as "truthful," "verifiable," and "neutral." The IASB defines reliability as "truthful", "substance over form", "neutrality" and "prudence".

The principle of relevance means that accounting information should be related to the economic decisions of information users, that is, people can use accounting information to make relevant economic decisions. It might be clearer to look at this.

Relevance has a lot in common with reliability. First of all, they together constitute the main quality characteristics of accounting information, and useful information must have both qualities, the greater the relevance, the higher the reliability, and the more in line with the needs of users. Second, relevance and reliability are presented from the perspective of the information user.

Reliability means that the information users can use the accounting information with full trust and confidence in the information they need. Thirdly, relevance and reliability are subject to the principle of cost-effectiveness and materiality.

Relevance and reliability are often contradictory. Reliability may be weakened by expanding the scope of accounting reflection or changing accounting methods in order to enhance relevance. Conversely, relevance is weakened by the fact that a large number of difficult economic resources can be reflected at the end of the day or that old accounting methods are used in order to improve reliability.

The trade-off between relevance and reliability should be primarily a question of how best to meet the needs of users in making economic decisions.

The quality of accounting information will affect the decision-making of users and the allocation of social resources.

Because the requirements of information users for information are different, accounting information will not only affect individual decision-making, but also affect the operation of the market, which puts forward requirements for the quality of accounting information, that is, the usefulness of decision-making. Decision usefulness is a broad concept, primarily reliability and relevance—the trade-off between the resulting information is the most useful information for the information consumer.

As a result, reliability and relevance are considered to be the two main quality characteristics of accounting information, and the decision-making usefulness of financial reporting is also widely used by major accounting standard-setters.

The principle of comprehensiveness.

Both the financial situation that is favorable to the enterprise and the financial situation that is unfavorable to the enterprise should be reflected, and it is not allowed to arbitrarily choose according to the subjective judgment of the accounting personnel, so that the information user has a comprehensive understanding of the financial situation of the enterprise.

Only comprehensive accounting information can truly reflect the financial health of a business. It can also be said that incomplete accounting information itself is also untrue and unreliable. Omissions may result in false or misleading information, which may affect the correct decision-making of the information user.

The above content refers to: Encyclopedia - Accounting Information Reliability.

Reliability: 1. Report based on actual transactions or events, for example, you can't issue inventory delivery vouchers virtually in order to whitewash the profit and loss statement. 2.The amount payable is a bank loan invoice, and the amount recorded is objectively proven and verifiable.

3.In some cases, it is necessary to estimate the value of real estate, and in this case, the appraisal by a professional real estate appraiser is a manifestation of reliability, because the real estate appraiser is a neutral third party, and if he or she overestimates or undervalues its value in a profit-driven manner, it is a deviation from reliability.

Is relevance also called importance?

As follows:

1. Enterprises should carry out accounting treatment on the basis of actual transactions or events, and cannot use fictitious transactions or events as the basis for accounting treatment.

2. Enterprises should truthfully reflect their transactions or events, and truthfully reflect the accounting elements that meet the definition and recognition conditions.

In the table, the real appearance of the company's production and operation activities is depicted.

3. On the premise of complying with the principles of materiality and cost-effectiveness, the enterprise shall ensure the integrity of accounting information, including the completeness of the prepared statements and notes, and cannot arbitrarily reduce the information that should be disclosed.

Overview of Accounting Information:

Information is data that is useful to people and can influence people's behavior. Information is the latest reflection of the changes and characteristics of various things in the objective world, the representation of the relationship between objective things, and the reproduction of the state of objective things in the human brain after transmission, so that it can produce guidance for people. Any information can only be accepted and used if it is transmitted.

Accounting information refers to the information that the accounting unit discloses the financial status and operating results of the unit to investors, creditors or other information users in the form of financial statements, financial reports or notes.

Reliability requirements: Enterprises should carry out accounting confirmation, measurement and reporting on the basis of actual transactions or events, and truthfully reflect the accounting elements and other relevant information that meet the requirements of recognition and measurement, so as to ensure that the accounting information is true, reliable and complete.

Reliability is a requirement for accounting information, and it is reliable when it has no material errors or biases, and can truthfully reflect the situation it intends to reflect or should reflect for the user to rely on.

Only if the accounting information is reliable, the company can provide true and effective financial reports, otherwise it will only mislead investors and the public, causing losses.

Answer: A, B, C, D, E

Accounting information quality requirements include reliability, relevance, comprehensibility, comparability, substance over form, materiality, prudence, and timeliness.

Answer]: A Analysis] This question assesses the quality of accounting information. Companies need to make trade-offs between timeliness and reliability to best meet the economic decisions of investors and other users of financial fraud, i.e., to maximize relevance.

Answer]: The value of accounting information is to help the owner or other parties to make economic decisions, and it is time-sensitive. Even reliable and relevant accounting information, if not provided in a timely manner, loses its timeliness and is much less useful to late-searchers, or even less relevant.

Therefore, timeliness is a constraint on the relevance of accounting information and the reliability of the hole, and enterprises need to find a balance between relevance and reliability to determine the time for timely disclosure of information.

Answer: Min Chang case]: a

Timeliness is a constraint on the relevance and reliability of accounting information, and companies need to find a balance between relevance and reliability to determine the timing of information and disclosure.