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In search of the invisible user of financial statements and his information needs. The (non)sense of different standards for listed and non-listed companies

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  • Vicky Cole
  • Joël Branson
  • Diane Breesch

Abstract

In more than 100 countries, listed companies prepare their financial statements using IFRS. For non-listed companies, the situation is less harmonised. One of the arguments in favour of this distinct approach is that financial statements of listed and non-listed companies attract different users. Empirical evidence to back up this assumption is, however, rare. This article contributes by empirically exploring whether this assumption is true based on a survey of 849 individuals. We found that users of financial statements of listed and non-listed companies differ in their reasons for using financial statements (professional or private), in their profession, in their experience and in their viewpoint (e.g., suppliers, investors, …). They also differ in the number of countries they are interested in and in the degree of detail they require. The different users are, however, interested in the same type of information. Furthermore, many users are interested in both types of company.

Suggested Citation

  • Vicky Cole & Joël Branson & Diane Breesch, 2012. "In search of the invisible user of financial statements and his information needs. The (non)sense of different standards for listed and non-listed companies," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 8(1), pages 1-23.
    • Handle: RePEc:ids:ijaape:v:8:y:2012:i:1:p:1-23
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    References listed on IDEAS

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    1. Ruud Vergoossen, 1993. "The use and perceived importance of annual reports by investment analysts in the Netherlands," European Accounting Review, Taylor & Francis Journals, vol. 2(2), pages 219-244.
    2. Estes, Rw, 1968. "Assessment Of Usefulness Of Current Cost And Price-Level Information By Financial Statement Users," Journal of Accounting Research, Wiley Blackwell, vol. 6(2), pages 200-207.
    3. Brenner, Vc, 1970. "Financial Statement Users Views Of Desirability Of Reporting Current Cost Information," Journal of Accounting Research, Wiley Blackwell, vol. 8(2), pages 159-166.
    4. Frederick D.S. Choi & Richard M. Levich, 1991. "International Accounting Diversity: Does it Impact Market Participants?," NBER Working Papers 3590, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Stefanie Ceustermans & Diane Breesch & Joël Branson, 2017. "Voluntary Disclosure of Sales and the Extent of Trade Credit in Small Private Companies," Accounting in Europe, Taylor & Francis Journals, vol. 14(3), pages 388-406, September.
    2. Karen Handley & Sue Wright & Elaine Evans, 2018. "SME Reporting in Australia: Where to Now for Decision†usefulness?," Australian Accounting Review, CPA Australia, vol. 28(2), pages 251-265, June.

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