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Accounting Information Qualitative Characteristics

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Accounting Information Qualitative Characteristics
International Management Review

Vol. 3 No. 2 2007

Accounting Information Qualitative Characteristics Gap: Evidence from Jordan
Ahmad N. Obaidat Tafila Technical University, Tafila, Jordan
[Abstract] The general objective of financial reporting is to provide useful information to

present and potential investors, creditors, and others to help them make investment, credit, and other decisions. The purpose of this paper is to find out whether there is an existing gap concerning the importance of accounting information qualitative characteristics from investors` and external auditors` perspective as they represent the independent part responsible for the fairness of financial reports. To achieve the purpose of this paper, a questionnaire was designed and administered to a sample of 25 investors and 29 auditors. The paper reveals that there is an existing gap between the external auditors and investors in terms of the qualitative characteristics of accounting information.
[Keywords] Accounting information; qualitative characteristics; Jordan

Introduction The principal role of financial reporting is to serve the interested parties by providing information that is useful in making business and economic decisions. Such information facilitates the efficient functioning of capital and other markets by promoting the efficient and equitable allocation of scarce resources in the economy. Each of the primary leaders of accounting standards, the International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB), developed its conceptual framework for financial reporting, which is a coherent system of concepts that flow from an objective. The objective identifies the purpose of financial reporting. The concepts provide guidance for identifying the boundaries of financial reporting, including: selecting the transactions, other events, and circumstances to be represented; identifying how they should be recognized and measured; and identifying


References: Dahmash, N. (1995). Financial Statements and Accounting Standards Generally Accepted.. Amman-Jordan. Kieso, D. E., Waygandt, J. J., & Warfield, T. D. (2005). Intermediate Accounting. (11 edition). Wiley Publisher. ACCPA, (2006) Journal of Accountancy, (Monthly Journal) September 2006, p. 17. Cheney, G. (2006). FASB, IASB request views on new reporting concepts. Accounting Today, Aug. 21-Sept. 3. Singleton-Green, B. (2006). The gathering. Retrived on Oct. 2006, from http://www.accountancymagazine.com Al-Duneibat, A. (2003) Structure and causes of the audit expectation gap: evidence from Jordan. DERASAT-Managerial Sciences, volume 30, No. 1. 32
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