A COMPARATIVE ANALYSIS ABOUT QUALITY CONCEPT IN FINANCIAL REPORTING


Financial statements which are acknowledged as the language of enterprises perform summarization function show financial status, financial progress, activity results and aid in decision taking for future supervision. In Conceptual Framework that has guidance attribute, formed for building up a common accounting language in the world, financial statements are taken in a wider perspective as financial reporting. Useful information presented in financial reports specifically has importance for investors, creditors and loaners. For information that would benefit users of financial statements it should have characteristics of qualified financial information. Qualified financial information should necessarily be relevant and faithfully represented; verifiable, timely, comparable and understandable. These acquired information bring quality concept into financial reporting agenda. Quality concept varies due to countries’ culture, language, accounting applications and education levels. Aim of this paper is to reveal financial reporting differences between Germany and Turkey in the light of elements affecting financial reporting quality. On this basis, financial reporting systems of both countries are examined. Through findings, German Generally Accepted Accounting Principles stated in German Commercial Law and accounting in Turkey before IFRS adoption applications developed on taxation focus, disclosed information don’t address investors. Besides, comparing two countries’ accounting systems indicate important differences detected relevant with accounting culture, capital markets and economic conditions which accordingly affect financial reporting quality.


Keywords


Accounting Environment, Financial Reporting, Financial Reporting Systems

Author : Mehmet İlker KARAKELLEOĞLU -Seçkin GÖNEN - Fatih YILDIRIM
Number of pages: 381-394
DOI: http://dx.doi.org/10.29228/TurkishStudies.22498
Full text:
Share:
Alıntı Yap:
Turkish Studies-Economics,Finance,Politics
E-Mail Subscription

By subscribing to E-Newsletter, you can get the latest news to your e-mail.