A Quality Financial Report: Concept Paper
Investors having lost their investments due to misrepresentation of information in financial reports, there is need for continued research on what constitutes a quality financial report. A quality financial report should be able to meet its primary objective of providing relevant information for e...
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| Format: | Article |
| Language: | English |
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Tishk International University
2019-03-01
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| Series: | International Journal of Social Sciences & Educational Studies |
| Subjects: | |
| Online Access: | http://ijsses.org/wp-content/uploads/2019/03/A-Quality-Financial-Report-Concept-paper.pdf |
| Summary: | Investors having lost their investments due to misrepresentation of information in financial
reports, there is need for continued research on what constitutes a quality financial report. A quality
financial report should be able to meet its primary objective of providing relevant information for economic
decision making (International Accounting Standard Board Framework). A conceptual framework on a
quality financial report is then proposed. This paper therefore seeks to explain the concept of a quality
financial report by identifying the financial report’s attributes, its antecedences and its outcomes. In order
to be useful, the financial report should possess both fundamental and enhancing qualitative characteristics
(International Accounting Standard Board Framework). Another attribute, mechanical presentation of the
report is then added. The elements considered here being, readability, legibility and report length. The
conceptual framework will guide the preparers of financial reports on what constitutes a quality financial
report so as to improve their reporting. It will also help the users of financial reports in determining the
quality of financial reports before using them for decision making. If this framework of a quality financial
report is adopted, there might be a reduction of the occurrences of financial statements scandals and thereby
restoring investor confidence in the financial reports. |
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| ISSN: | 2409-1294 2520-0968 |