An analysis of the qualitative characteristics of management commentary reporting by New Zealand companies

Bikram Chatterjee, Stuart Tooley, Victor Fatseas

Research output: Book chapter/Published conference paperConference paperpeer-review

13 Downloads (Pure)

Abstract

The narrative section of annual reports has considerable value to various user groups of annual reports, such as financial analysts and investors (Tiexiera, 2004; Barlett and Chandler, 1997; IASB, 2006). This narrative section including chairpersons'/presidents' statement contains twice the quantity of information than the financial statements section (Smith and Taffler, 2000). However, the abundance of information does not necessarily enhance the quality of such information (IASB, 2006). This issue of qualitative characteristics has been long foregone by researchers. However, this issue has gained attention of IASB (2006). Following this dearth in research this paper explores whether investors' required qualitative characteristics as stated by the IASB (2006) have been satisfied in management commentary section of a sample of New Zealand companies' annual reports. Our result suggests that the principal stakeholders', that is, investors' qualitative characteristics requirements have been partially met in this section of annual reports. The qualitative characteristic of 'relevance' and 'supportability' have been satisfied in more annual reports compared to that of 'balance' and 'comparability.'
Original languageEnglish
Title of host publication20th APC on International Accounting Issues
Place of PublicationParis, France
PublisherAPC
Pages1-25
Number of pages25
Publication statusPublished - 2008
EventAsian Pacific Conference on International Accounting Issues - Paris, France
Duration: 09 Nov 200812 Nov 2008

Conference

ConferenceAsian Pacific Conference on International Accounting Issues
CountryFrance
Period09/11/0812/11/08

Fingerprint Dive into the research topics of 'An analysis of the qualitative characteristics of management commentary reporting by New Zealand companies'. Together they form a unique fingerprint.

Cite this