Qualitative characteristics of financial reporting

• Main Authors: Hasan, Md. Shamimul, Abdullah, Shamsul Nahar, Hossain, Syed Zabid Hossain
• Format: Article
• Language: English
• Published: Institute of Chartered Accountant of Pakistan (ICAP) 2014
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/12574/1/Qulait.pdf; http://repo.uum.edu.my/12574/; http://www.icap.org.pk/wp-content/uploads/PA/2014/janmarch/index.html#p=1
• Institution: Universiti Utara Malaysia

This empirical study evaluates the views and perceptions of external users about selected qualitative characteristics of corporate financial reports in Bangladesh.The selected qualitative characteristics were predictive value, feedback value, timeliness, verifiability, representational faithfulness, neutrality and comparability.An opinion survey was conducted on one hundred ninety external users specifically shareholders, stockbrokers, bankers, academicians and tax officers.The users’ perception about the qualitative characteristics of corporate financial reporting is far below the acceptable level and as such users have a negative attitude towards disclosures of financial reporting.The study suggests that Board of Directors(representatives of the majority shareholders) should try to resuscitate the confidence level of external users through ensuring good corporate governance with utmost sincerity and integrity.The BOD should also ensure that financial statements reflect the true and fair view of financial position, performance and the state of affairs of the reporting entity.This research may help policy makers, regulators, reporting entities, academicians, stakeholders, and other interested groups to endorse good corporate financial reporting environment in Bangladesh.