Information Asymmetry Gap Analysis among professional bodies, Users and Preparers of Accounting Information under Qualitative Characteristic of Financial Reporting

Subject Areas : Management Accounting

دکتر حمیدرضا وکیلی فرد ¹ (ندارد)
وهاب رستمی ² (ندارد)

Received: 2010-08-01 Accepted : 2010-10-04 Published : 2010-09-23

Keywords: Information asymmetry gap, qualitative characteristic, conceptual framework&#x0D, &#x0D, prepare,

Abstract :

Critical role of accounting and financial reporting is providing useful information fordifferent and entitled users to help them in making economical decisions. While repeatedly itis stressed that value of accounting information is it’s convenient usage not necessarily it’sreporting, sometimes it is mentioned that the users of accounting information couldn’tunderstand the meaning of released information in the expected level. Besides reducing theeffectiveness of accounting reports, by creating vast information asymmetry, this subjectcauses to reduce capital market efficiency. In this study it is intend, with aid of accountingand financial reporting qualitative characteristic, determine perception gap of qualitativecharacteristic preferences between profession, users and preparers of accounting informationand also areas of financial reporting whereby this gap is huger and deeper. In order to test,two main hypotheses of the study that were designed by theoretical framework, 281questionnaires distributed among accountants, auditors, stock analysts, bank specialists andaccounting and management students. Collected Data tested by Kruskal-Wallis and Friedmanstatistical methods. The results showed there is a meaningful differences among profession,preparers’ and users’ viewpoint about accounting qualitative characteristics preferences andspecially auditors comparing to others less satisfied of level of current financial reportingaccordance with qualitative characteristics. Moreover this study revealed that respondents,among six investigated qualities comparing to timeliness, Comparability and Relevance morecomplain of current condition of the inadequate disclosure, have no sufficient Reliability ofpresented financial information. This finding is in accordance with past findings that showedin contrary to public imagination, FASB by concentrate on standard-overloud, states that thebest way to achieve accounting objectives isn’t always increasing the level of accountingdisclosure, but also quality and form of disclosure or it’s reliability must be considered.