The importance of balancing relevance and reliability in improving the quality of financialstatements in economic institutions - A study on a sample of externalauditors in Algeria -

Abstract

This study aims to highlight the importance of balancing the basic qualitative characteristics of financial information (reliability and relevance) contained in the reports and financial statements of economic enterprises in Algeria and their role in improving the quality of these states. It also focused on the interaction of the role of the charge of the measurement and the measurement rules and the determinant of the relative importance of the weighting of one property of another, and the impact on the quality of the reports and financial statements. and on the decision maker.

The studyprovedthatwhenmeasuringelements of financialstatements, reliabilityispreferred over relevance,due to respect for the historicalcost basis. And that the balance betweenreliability and relevance rests on the criterion of « relative importance ».