| Autor: |
Tschopp, Daniel, Barney, Doug, Dean, Passard C. |
| Předmět: |
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| Zdroj: |
International Journal of Business, Accounting & Finance; Spring2018, Vol. 12 Issue 1, p63-74, 12p |
| Abstrakt: |
The purpose of financial reporting is to help users make informed decisions. Over time the reporting process has become more and more complex. Reporting standards and rules have increased both in terms of quantity and sophistication. Because of this, it is important to ask the question about the basic premise of financial reporting - is the information being reported by companies useful to its intended users? This study examines the financial statement notes of the 30 companies that comprise the Dow Jones Industrial Average. Readability tests are performed on the financial statement notes for the years 2000, 2010 and 2015 to determine if the information being reported can be used by the average user and if the level of complexity has changed over time. The results revealed that the use of the passive voice in financial statement note disclosures has not changed over time. However, based on the Flesch Reading Ease score, the results revealed that over time the readability of disclosures notes has decreased. The declining trend in readability of financial statement note disclosures is a cause for concern because it is important the users of these statements are able to understand the information provided to them so they can make the best decisions. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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