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First, on the relevance of accounting information
Second, the reliability of accounting information
Thirdly, the dialectical relationship between the relevance and reliability of accounting information.
4. Realistic thinking on relevance and reliability
refer to
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First, on the relevance of accounting information
(A) the meaning of relevance
Relevance means that the accounting information provided by financial reports is related to investment, credit and similar decisions made by investors, creditors and other departments or personnel. Correlation includes three basic quality indicators: predicted value, feedback value and timeliness. According to the definitions of International Accounting Standards Committee (lASC) and Financial Accounting Standards Committee (FASB), relevance includes the following meanings: ① Information is related to users' decisions and has the ability to influence users' economic decisions. ② The function of information in decision-making refers to inputting relevant information into the forecasting process, thus enhancing the forecasting ability of decision makers and confirming or correcting past evaluations. (3) Information is useful for decision-making, and it must be provided to decision-makers in time before the information loses its decision-making function, otherwise the relevant information will become irrelevant.
(B) the relationship between accounting information needs and relevance
Relevance initially refers to general relevance, that is, financial status, operating results, cash flow and other information. Used as information related to the decision-making of all information users and providing them with general financial reports. The current financial report has reached the requirements of general relevance and is basically complete. ..........