Qualitative Characteristics of Financial Information Toward Quality of Financial Reporting in Malaysian Listed Manufacturing Firms
This study aims to examines qualitative characteristics and financial reporting quality of the Malaysian listed manufacturing firms. This paper explores whether qualitative characteristics may contribute to financial usefulness by providing quality financial reporting information. Qualitative characteristics, according to the International Accounting Standards (IASB) and International Financial Reporting Standards (IFRS) framework, are the characteristics that make the information contained in financial statements useful to users. There are four qualitative characteristics under Financial Accounting Standards Board (FASB) and International Accounting Standards (IASB) namely (1) relevance, (2) reliability, (3) understandability, and (4) comparability. These four qualitative characteristics are truly tested to see whether they can improve the consistency of financial reporting data in manufacturing sector. According to both standards (FASB and IASB) relevance, reliability, understandability, and comparability are the main characteristics for enhancing the consistency of financial reports.
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