Relevance and reliability characteristics are placed as overriding qualities of financial statements over other qualitative characteristics:

Question

Quizplus · Accepted Answer

The relevance and reliability characteristics are considered as the most important qualitative characteristics of financial statements. Relevance ensures that information presented in the financial statements is important and useful, while reliability ensures that the information is accurate, complete, and unbiased. Other qualitative characteristics such as comparability, understandability, and timeliness are also important, but relevance and reliability are considered as the overriding qualities.

Relevance and Reliability Characteristics Are Placed as Overriding Qualities of Financial