Home  Journals  International Accounting  8(350) - 2015 February

On the question of the essence of the reliability category

Available online: 23 April 2015

Subject Heading: NATIONAL STANDARDS OF ACCOUNTING AND REPORTING

JEL Classification: 

Pages: 17-32

Importance Reliability of financial statements is one of the most important qualitative characteristics for users. Therefore, it is crucial to ensure reliability of financial statements due to available shortcoming of the laws.
     Objectives The purpose and the main objectives of the article are to substantiate theoretical approaches, clarify the concepts of reliability, reliable financial statements, and to systematize the conditions (criteria) for recognition of financial statements as reliable.
     Methods In the study, I used scientific methods of research like analysis, synthesis, analogy, and comparison.
     Results I have formulated a unique definition of the concepts of reliability, faithful representation. I have developed a classification of the degree of reliability (unreliability) of financial statements based on possible combination of procedures that should be performed for each accounting item at the stage of its recognition, measurement, and information disclosure. The proposals presented in the study may be useful for Russian accounting regulations improvement to enhance the reliability of financial statements of economic entities, as well as for teaching and learning activities of higher educational institutions.
     Conclusions and Relevance There may be many levels of financial statements' reliability as a result of fulfillment (non-fulfillment) of procedures to be performed when an accounting item is recognized, measured, and when information about accounting items is disclosed and confirmed.

Keywords: accounting, financial statements, faithful representation, criteria, reliability

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