IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/2139.html
   My bibliography  Save this article

Qualitative Characteristics of Financial Reporting: An Evaluation According to the Albanian Users’ Perception

Author

Listed:
  • Albana Gjoni-Karameta
  • Elona Fejzaj
  • Ahmad Mlouk
  • Kristina Sila

Abstract

The last 20 years’ changes in accounting has led to an essential review process of national accounting standards due to the main objective of improving financial reporting information for stakeholders. Financial reporting as a communication tool has become extremely important for appropriate decision making to economic reporting entities and also financial information users such as analysts, creditors, managers, auditors and government agencies in Albania and all over the world. The absence of a generally accepted definition for qualitative financial reporting has created a gap for continuous research on this matter. The main objective of this study is to examine users’ perception of qualitative financial reporting, toward their perceptions of some selected qualitative characteristics of financial statements. This study aims to determine the attitudes of financial statements’ users toward the importance of qualitative characteristics of financial information reported on these published financial statements. The chosen qualitative characteristics were relevance, faithful representation, comparability, timeliness, verifiability and understandability. An opinion survey was conducted on three hundred external users of financial statements, such as managers, bank officers, financial analysts, government officers and auditors. Each single characteristic has been operationalized using a structured questionnaire, and a five point Likert type scale was used. Selection process of qualitative characteristics of reported financial information will be based on the data taken from conceptual framework of international financial reporting standards published by the International Accounting Standards Board in a continuous process of improving financial reporting. This research examined primary data taken through an opinion survey directed to three hundred daily users of financial statements ‘information, reported by economic entities in Albania. Results of the study show a very strong positive correlation between users ‘perception and qualitative characteristic of faithful representation, a relatively strong positive correlation with relevance, comparability and understandability, and a moderate correlation with timeliness and verifiability. Users of financial reporting in Albania generally have a very positive attitude towards the qualitative characteristics of financial reporting.

Suggested Citation

  • Albana Gjoni-Karameta & Elona Fejzaj & Ahmad Mlouk & Kristina Sila, 2021. "Qualitative Characteristics of Financial Reporting: An Evaluation According to the Albanian Users’ Perception," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, November.
    • Handle: RePEc:bjz:ajisjr:2139
    DOI: https://doi.org/10.36941/ajis-2021-0151
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12669
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12669/12269
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.36941/ajis-2021-0151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kazeem Akanfe Soyinka & Michael Omotayo Fagbayimu & Emmanuel Adegoroye & John Oladipo Ogunmola, 2017. "Decision Usefulness and Financial Reporting: The General Public Perspective," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 160-168, October.
    2. Ahmed Al-dmour & Maysem F. Abbod & Hani H. Al-dmour, 2017. "Qualitative Characteristics of Financial Reporting and Non-Financial Business Performance," International Journal of Corporate Finance and Accounting (IJCFA), IGI Global, vol. 4(2), pages 1-22, July.
    3. Barth, Mary E. & Beaver, William H. & Landsman, Wayne R., 2001. "The relevance of the value relevance literature for financial accounting standard setting: another view," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 77-104, September.
    4. Alexios KYTHREOTIS, 2014. "Measurement Of Financial Reporting Quality Based On Ifrs Conceptual Framework’S Fundamental Qualitative Characteristics," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 2(3), pages 4-29, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De George, Emmanuel T. & Li, Xi & Shivakumar, Lakshmanan, 2016. "A review of the IFRS adoption literature," LSE Research Online Documents on Economics 67599, London School of Economics and Political Science, LSE Library.
    2. Luciana Spica Almilia, 2011. "Value Relevance Of Accounting Information Using An Error Correction Model," Accounting & Taxation, The Institute for Business and Finance Research, vol. 3(2), pages 119-131.
    3. Mohd Mohid Rahmat & Kamran Ahmed & Gerald J. Lobo, 2020. "Related Party Transactions, Value Relevance and Informativeness of Earnings: Evidence from Four Economies in East Asia," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-42, March.
    4. Fiordelisi, Franco & Molyneux, Phil, 2010. "Total factor productivity and shareholder returns in banking," Omega, Elsevier, vol. 38(5), pages 241-253, October.
    5. Gomez Biscarri, Javier & Lopez Espinosa, German, 2008. "The influence of differences in accounting standards on empirical pricing models: An application to the Fama-French model," Journal of Multinational Financial Management, Elsevier, vol. 18(4), pages 369-388, October.
    6. Joos, P.P.M., 2008. "Is IFRS bringing higher reporting quality to the table?," Other publications TiSEM f616c046-7620-4c2e-9fad-9, Tilburg University, School of Economics and Management.
    7. Qu, Xiaohui & Zhang, Guohua, 2015. "Value-relevance of Earnings and Book Value Over the Institutional Transition in China: The Suitability of Fair Value Accounting in This Emerging Market," The International Journal of Accounting, Elsevier, vol. 50(2), pages 195-223.
    8. Jannis Bischof & Holger Daske & Christoph Sextroh, 2014. "Fair Value-related Information in Analysts’ Decision Processes: Evidence from the Financial Crisis," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(3-4), pages 363-400, April.
    9. Steve Fortin & Ahmad Hammami & Michel Magnan, 2021. "Re‐exploring Fair Value Accounting and Value Relevance: An Examination of Underlying Securities," Abacus, Accounting Foundation, University of Sydney, vol. 57(2), pages 220-250, June.
    10. A. Rashad Abdel‐Khalik, 2010. "Fair Value Accounting and Stewardship," Accounting Perspectives, John Wiley & Sons, vol. 9(4), pages 253-269, December.
    11. Rolf Uwe Fülbier & Thorsten Sellhorn, 2023. "Understanding and improving the language of business: How accounting and corporate reporting research can better serve business and society," Journal of Business Economics, Springer, vol. 93(6), pages 1089-1124, August.
    12. Lorena Mitrione & George Tanewski & Jacqueline Birt, 2014. "The relevance to firm valuation of research and development expenditure in the Australian health-care industry," Australian Journal of Management, Australian School of Business, vol. 39(3), pages 425-452, August.
    13. J.C.Ihemeje & Geff Okereafor & Bashir M. Ogungbangbe, 2015. "The Use of Accounting System in the Nonprofit-Oriented Church Organizations of Nigeria," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(12), pages 58-66, November.
    14. Mary E. Barth & Greg Clinch, 2009. "Scale Effects in Capital Markets-Based Accounting Research," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(3-4), pages 253-288.
    15. Adriatik Kotorri & Mirela Miti & Ingrit Konomi, 2014. "Assessment Of Banking Assets On Financial Risk Management - Albanian Case," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 314-318, February.
    16. Mary E. Barth, 2015. "Financial Accounting Research, Practice, and Financial Accountability," Abacus, Accounting Foundation, University of Sydney, vol. 51(4), pages 499-510, December.
    17. Alessandro Mechelli & Riccardo Cimini, 2021. "The effect of corporate governance and investor protection environments on the value relevance of new accounting standards: the case of IFRS 9 and IAS 39," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1241-1266, December.
    18. Alessandro Mechelli & Riccardo Cimini, 2014. "The value relevance of earnings and book value across the EU. A comparative Analysis," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(2-3-4), pages 83-113.
    19. Carretta, Alessandro & Farina, Vincenzo & Fiordelisi, Franco & Schwizer, Paola, 2006. "Corporate culture and shareholder value in banking industry," MPRA Paper 8304, University Library of Munich, Germany.
    20. Mawuena Akosua Kukah & Mohammed Amidu & Joshua Yindenaba Abor, 2016. "Corporate governance mechanisms and accounting information quality of listed firms in Ghana," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(1), pages 38-58.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjz:ajisjr:2139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.