The importance of the objectives and qualitative characteristics of accounting information within the Maltese context : an investigation

Abstract

The IASB Conceptual Framework (2001) presents the objectives of accounting information in order to direct preparers in the preparation of financial statements. The qualitative characteristics of accounting information are also included in this framework to assist preparers in attaining these objectives. In this regard, it is important that the perception of preparers of accounting information mirrors those held by shareholders - the latter being the ultimate users of accounting information. This study was carried out to investigate the importance given to the objectives and qualitative characteristics of accounting information amongst accountants, shareholders and accountancy students in Malta. With the IASB and FASB's convergence project in the backdrop, this study helps in identifying any similarities and differences between the three groups with respect to the objectives and qualitative characteristics of accounting information. The current importance given to the prudence concept was also investigated in this study. The methodology used was quantitative in nature and the tool used was the questionnaire. From the results it can be shown that both objectives of accounting information are valued by the three groups. The stewardship objective along with the prudence concept are still highly regarded in Malta. Reliability featured as the most important qualitative characteristic in all three groups, however understandability seems to be a major issue for local accountants as they are concerned with the fact that shareholders may find difficulties in understanding financial statements.