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dc.contributor.authorCocker, Antoinette Len_NZ
dc.date.available2011-04-07T03:10:00Z
dc.date.copyright2005-10-17en_NZ
dc.identifier.citationCocker, A. L. (2005, October 17). Relevance and reliability: A trade-off? (Dissertation, Bachelor of Commerce with Honours). Retrieved from http://hdl.handle.net/10523/1186en
dc.identifier.urihttp://hdl.handle.net/10523/1186
dc.description.abstractAccording to the Statement of Concepts, two qualitative characteristics that financial accounting information should possess are relevance and reliability. There is a long-held belief that there is a trade-off relationship between these qualities. However, very little empirical investigation has tested the presence of this relationship, and that which has found no empirical support for this. This dissertation investigates the correlation of interest groups’ perception differences between the relevance and reliability of historical cost and fair value measures. 397 participants from three interest groups; debt providers, equity providers, and statement preparers, were solicited for this sample, with 228 (57.4%) usable responses received. The convergence toward International Financial Reporting Standards (IFRSs), and its preference for fair value, was utilised as the setting for this investigation. With the belief that there is a trade-off in relevance and reliability with the move from historical cost toward fair value, six topical asset classification examples were tested. Individual analysis of the three groups found a positive relationship, which was significant on almost all occasions, between the perceptions of relevance and reliability. While the results go against the long-held belief of a trade-off between relevance and reliability, the results are consistent with previous empirical findings in this area. These research results have implications for standard setters that advocate, and mandate, the use of historical cost which appears to provide information which is both less relevant, and less reliable.en_NZ
dc.format.mimetypeapplication/pdf
dc.subject.lcshHF5601 Accountingen_NZ
dc.titleRelevance and reliability: A trade-off?en_NZ
dc.typeDissertationen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages81en_NZ
otago.date.accession2005-12-08en_NZ
otago.schoolAccountancy and Business Lawen_NZ
thesis.degree.disciplineAccountancy and Business Lawen_NZ
thesis.degree.nameBachelor of Commerce with Honours
thesis.degree.grantorUniversity of Otagoen_NZ
thesis.degree.levelHonours Dissertationsen_NZ
otago.openaccessOpen
dc.identifier.eprints161en_NZ
otago.school.eprintsAccountancy & Business Lawen_NZ
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