Problems of users’ perception of financial statements according to international standards

Abstract

Goal: identify and evaluate the factors that significantly affect the current assessment by representatives of the business environment of the quality and functionality of reporting generated by management in accordance with international financial reporting standards, in terms of increasing the clarity, simplifying and reducing current reporting to improve its perception by users.

Methodology: the applicable methodology included general scientific methods of cognition, including analysis and synthesis, and expert assessments. The main results were obtained using factorial and multivariate analysis tools.

Findings: the results of the tests performed are statistically significant and indicate against the null hypothesis. A significant part of the reporting information is difficult to fully understand by investors and representatives of other groups of interested users who ambiguously assess the feasibility of simplifying and reducing current reporting in order to increase its consumer value.

Originality and contribution of the author: the basis of the study is a statistical analysis of current primary data obtained during a survey of representatives of the business environment. The theoretical significance of the results obtained lies in the refinement of the structure and assessment of factors influencing the quality of perception by users of corporate reporting information prepared by management in accordance with international financial reporting standards. The practical significance of statistically justified conclusions about the importance of adjusting the level (adaptation) of the complexity of standards and disclosures to improve the consumer characteristics of financial statements generated by management is determined by the possibility of their use in management practice to improve the efficiency of information support for investors and improve the corporate governance system.