TRADE OFF RELEVANCE DAN RELIABILITY: ISU IFRS

Abstract

Financial reports containing qualitative characteristic that are useful for usernya.For a long time believed to be
the existence of trade off between characteristic of qualitative relevance and reliability. Trade off due to the fact
that the use of the method of measurement historical cost and fair value. Trade off occur because of the interests
of for the purpose of the preparation of reports on finance. Accountability for the purpose of the measurement of
the cost of historical still reliable because reflect the truth (objective), on the contrary for the purpose of
information in the decision-making process and the value of reasonable more relevant. Trade off between
relevant and the reliability of there will always be because there is a difference in the interests of and
arrangement of trend setter concerning characteristics qualitative to be undertaken, so the company it is not
possible to showing both of them in coordinated with the same. The existence of trade off between relevant and
the reliability of use on fair value that give preference to relevant and reliability at the expense of resulting in
finance reports.