Perceptions and characteristics of financial statements providers in developing countries : the case of Iran

This study reports an empirical investigation of the characteristics, attitudes, and beliefs of preparers of external financial reports in a less developed country. The basic research instrument consisted of a questionnaire in two parts, the first addressing ethical behaviour and attitudes of professional accountants toward annual financial reports generally and, the second, more specifically addressing specified categorized information items. In respect of the qualifications and experience of respondents it was found that they generally held senior positions within their company and were well qualified with substantial relevant experience. The primary users of published financial reports were found to be company shareholders who regard the independent auditors as the most influential group in aiding their decision-making processes: they regard the auditor's report and the regulatory framework as major influences on financial reporting practices. Among the restricting factors on the disclosure level of the annual reports, a lack of knowledge of external users' needs and lack of reporting standards and accepted accounting principles were ranked as the most important factors by preparers in this study. The results of the sectional examination show that the most important sections of the annual reports are the balance sheet, statement of accounting policies, and profit and loss or income statement.