Explain the Difference Between Validity and Reliability

question 33

Essay

Explain the difference between validity and reliability. Explain whether they are related or independent concepts.

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Definitions:

Loss Contingency

A potential financial liability that may occur depending on the outcome of a future event.

IFRS

International Financial Reporting Standards, a set of global accounting standards developed by the International Accounting Standards Board.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a common set of accounting rules and standards for financial reporting.

Provision

A financial accounting term referring to setting aside an amount in the books to cover a presumed future liability or loss.