| Pub. Date | : Jan, 2024 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP040124 |
| Author Name | : Abhishek N, Ashoka M L, Parameshwara, M S Divyashree and Neethu Suraj |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 22 |
Efficient decisions by various stakeholders depend on how business organizations communicate their operational and financial information. Financial reporting is a means to disseminate information on various operational and non-operational affairs of business organization; it is done through financial statements, notes to accounts and narrative section in the annual reports. Due to risks in business environment, stakeholders expect enhanced information on various multidimensional aspects of business. Therefore, business organizations are required to disseminate enhanced information so as to assist in decision making by them. This is possible only with the help of an enhanced business reporting model. Such a model can be successfully implemented through the application of extensible business reporting language (XBRL). The present paper analyzes the impact of XBRL on the quality of financial reporting based on the financial reporting patterns of 23 selected NSE listed companies from 2005 to 2020, using statistical tools such as Tukey test and dummy variable regression analysis. The study finds that XBRL had a significant impact on the quality of financial reporting of the selected companies.
The efficient and effective communication of business and financial information to end-users helps them get clear insights on business outlook and make timely decisions. Financial reporting acts as a vehicle to disseminate financial information of a business to various interested parties. Communicating operating and financial information can be done through financial statements, notes to financial statements and other footnotes in the annual report and also through various media such as annual reports, news items in newspapers, press meets, etc.