A Quality Financial Report: Concept Paper
DOI:
https://doi.org/10.23918/ijsses.v5i3p167Keywords:
Stakeholder Theory, Stewardship Theory, Quality Financial Report, Readability, LegibilityAbstract
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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