Financial statement users’ perceptions on the extensiveness of note disclosure of publicly-listed companies in the Philippines

• Main Authors: Abitria, Celine, Cristobal, Regina, Reyes, Leon, Robles, Christian, Tubay, Jerwin B.
• Format: text
• Published: Animo Repository 2019
• Subjects: Financial statements—Philippines; Disclosure in accounting—Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/11248
• Institution: De La Salle University

The notes to financial statements disclose relevant information to existing and potential investors and other stakeholders for the purpose of decision-making. Relevant users have the capacity to comprehend the information given in these financial statements. However, throughout the years, there had been a growing increase in the volume of financial statements which is caused by revisions of current standards and issuance of additional reporting standards hence, financial statements are experiencing disclosure complexity issues. This hinders financial statements to become relevant, readable, and comprehensible, which are causing rising concerns on users. Thus, this study aims to describe users’ perceptions on the extensiveness of financial statement note disclosures of publicly-listed companies in the Philippines. Using non-parametric tests, descriptive statistics and Venn diagrams, the results showed that financial statements users need enough accounting knowledge or background in reading financial statements. Also, financial statement users are recommended to focus more on mandatory disclosures as they are deemed to be more relevant as compared to voluntary disclosures and to avoid the occurrence of information overload which can lead to a wrong decision.