Measuring the Quality of the Interim Financial Reports Using the Qualitative Characteristics of the Accounting Information and its Effect on the Investment Decisions According to the “IAS 34”

Abstract

This study aimed at measuring the quality of the interim financial reports using the quality characteristics of the accounting information and its effect on the investment decisions according to IAS 34 from the point of view of a category of the financial information users working in the brokerage companies. To achieve the objectives of the study, a questionnaire was designed that contains three constructs related to the primary qualitative characteristics, the enhancing qualitative characteristics, and quality of the interim financial reports. The questionnaire was distributed to a sample consisting of 72 individuals. Descriptive statistics were used to describe the study sample such as the frequencies, arithmetic mean, and standard deviation. In addition, the one-sample t-test and simple linear regression analysis were employed to test the study hypotheses at the 0.05 level of significance. Of the main results which the study reached to are that (i) there is effect of the qualitative characteristics of both the primary and enhancing aspects on the quality of the interim financial reports, and (ii) there is effect of the interim financial reports on the investment decision taking. The study provided a number of recommendations, most important of which is directing the prepares of the interim financial reports to pay attention to providing the qualitative characteristics for the accounting information in the interim financial reports for their positive effect on the quality of these reports to help the decision takers in predicting the economical events and building the future plans.

Pengaruh Informasi Akuntansi, Persepsi Risiko dan Citra Perusahaan dalam Pengambilan Keputusan Investasi di Masa Pandemi Covid-19

“…Informasi akuntansi merupakan sederet informasi yang dapat diperoleh dari laporan keuangan perusahaan. Laporan keuangan yang telah diaudit dianggap sebagai alat utama yang menjadi pedoman dalam pengambilan keputusan ekonomi dan diperhitungkan sebagai sumber informasi penting yang memungkinkan investor untuk mengambil keputusan investasi mereka (AL-Shatnawi, 2017). Selama adanya peristiwa Covid-19 ini, tak sedikit dari perusahaan-perusahaan baik besar hingga usaha kecil mengalami penurunan kinerja dan mengalami kerugian.…”

Qualitative Characteristics as a Reliable Tool for Assessing the Quality of Accounting Information: An Overview Study

“…Several studies have discussed the characteristics of accounting information such as Beest et al (2009), Jing and Harbin: School Of Management, Harbin Institute Of Technology, P.R.China. (2007), Obaidat (2007), Kallob and Buhaisi (2013), Kythreotis (2014), Tsoncheva (2014), Yurisandi and Puspitasari (2015), Junior et al (2017), Nobes and Stadler (2015), Mbobo and Ekpo (2016), AL-Shatnawi (2017), Al-dmour et al (2017), Mbawuni (2019. Jonas and Blanchet (2000) developed a generally acceptable framework between management, auditors and audit committees to assess the quality of inancial reports.…”

The Effect of Quality and Timeliness of Limited Review Report on Perceived Interim Financial Reporting Quality during COVID-19 Pandemic Crisis: Evidence from Egypt

“…Interim financial reports represent an important source of information for decision makers in general and investors in particular. The information included in such reports helps decision makers to have updated information on the company's performance and financial position and accordingly they could assess their investment decisions taken before instead of waiting for the annual financial statements (Al-Shatnawi, 2017).…”

“…It is important that interim financial reports are of a higher quality for its users. Based on a survey of 72 investment specialists in Jordan, Al-Shatnawi (2017) found evidence that the qualitative characteristics of accounting information whether primary or enhancing characteristics included in the interim financial reports affect their quality, which is of great importance to decision makers.…”

“…The information asymmetry between the users and providers of financial statements creates the demand for high quality audit (Abdollahi et al, 2020), which is necessary for a well-functioning capital market (Skinner & Srinivasan, 2012) and enhances the allocation of resources (Dye, 1993) and the reliability of financial statements from the investors' point of view (Chen et al, 2014) Interim financial reports represent an important source of information for decision makers in general and investors in particular. According to Al-Shatnawi (2017), the financial information included in such reports helps decision makers to have updated information on the company's performance and financial position and accordingly they could assess their decisions taken before instead of waiting for the annual financial statements. In addition to the content of interim financial reports, the issuance of such reports in the right time is very important and will increase the benefits and usefulness of financial information to its users.…”