Financial Reporting Destined to External Third Parties as a Tool for Analysing Creditworthiness: Usefulness and Limitations. The Italian Case

Financial Reporting Destined to External Third Parties as a Tool for Analysing Creditworthiness: Usefulness and Limitations. The Italian Case

Maria Silvia Avi

Contact

Financial Reporting Destined to External Third Parties as a Tool for Analysing Creditworthiness: Usefulness and Limitations. The Italian Case

Article Fingerprint

ReserarchID

CABDG

AI TAKEAWAY

Connecting with the Eternal Ground

Abstract

Financial reporting to external third parties is the primary document based on which, at least in theory, a company’s creditworthiness should be assessed. Income, capital, financial and sustainability performance should be understood through a thorough analysis of the financial reporting and sustainability report data. Here, we will focus exclusively on Financial reporting. As we will see, Financial reporting intended for the outside world is characterised by an information gap that tends to preserve the company’s right to information and privacy. The main objective of Financial Reporting for External Purposes is to ensure that all Financial Reporting prepared by a nation’s companies is consistent in structure and thus comparable. The spread of IAS/IFRS makes it no longer a national but a supranational objective. The significant unsolvable problem is that such financial statements, precisely in order to guarantee the privacy of certain information of a strategic nature or the disclosure of which could be detrimental to company management, are characterised by a lack of information that prevents an indepth analysis of the situation with a global company.

References

113 Cites in Article

Reference Format

Arthur Adelberg (1979). A Methodology for Measuring the Understandability of Financial Report Messages.
Arthur Adelberg (1983). The Accounting Syntactic Complexity Formula: A New Instrument for Predicting the Readability of Selected Accounting Communications.
A Adelberg,J Razek (1984). The Cloze Procedure: A Methodology for Determining the Understandability of Accounting Textbooks.
W Albrecht,R Sack (2001). Accounting Education: Charting the Course Through a Perilous Future.
D Alexander,A Britton,A Jorissen (2007). International financial reporting and analysis.
D Alexander (1993). A European true and fair view?.
David Alexander,Hans Schwencke (1997). Accounting change in Norway.
David Alexander,Hans Schwencke (2003). Accounting change in Norway.
David Alexander,Eva Jermakowicz (2006). A true and fair view of the principles/rules debate.
D Alexander,C Nobes (2013). Financial accounting: an international introduction.
N Ankarath,K Mehta,T Ghosh,Y Alkafaji (2010). Understanding IFRS fundamentals: international financial reporting standards.
Avi (2017). Cost Volume Profit Analysis (CVP-Analysis).
Maria Silvia Avi (2018). Understandability of Financial Reporting Requires Comprehensive Explanations and Not Mere References to Accounting Standards or Reports Attached to Financial Reporting.
W Ballwieser,G Bamberg,M Beckmann,H Bester,M Blickle,R Ewert,A Wagenhofer,M Gaynor (2012). Agency theory, information, and incentives.
Annette Baines,Kim Langfield-Smith (2003). Antecedents to management accounting change: a structural equation approach.
Mary Barth,Katherine Schipper (2008). Financial Reporting Transparency.
Mary Barth (2014). Measurement in Financial Reporting: The Need for Concepts.
E Barret,L Fraser (1977). Conflicting roles in budgeting for operations.
Rachel Baskerville,Huw Rhys (2014). A Research Note on Understandability, Readability and Translatability of IFRS.
F Beest,G Braam,S Boelens (2009). Quality of Financial Reporting: measuring qualitative characteristics.
George Benston,Michael Bromwich,Robert Litan,Alfred Wagenhofer (2006). Worldwide Financial Reporting.
G Boer (2000). Management Accounting Education: Yesterday, Today and Tomorrow.
Peter Bunce,Robin Fraser,Lionel Woodcock (1995). Advanced budgeting: a journey to advanced management systems.
Stuart Burchell,Colin Clubb,Anthony Hopwood,John Hughes,Janine Nahapiet (1980). The roles of accounting in organizations and society.
S Burchell,C Clubb,A Hopwood (1985). Accounting in its social context: Towards a history of value added in the United Kingdom.
Simon Cadez,Chris Guilding (2008). An exploratory investigation of an integrated contingency model of strategic management accounting.
Robert Chenhall (2008). Accounting for the horizontal organization: A review essay.
Chloe Kan,C (2021). Budget depreciation: when budgeting early increases spending.
S Cristea,C Saccon (2008). Italy between applying national accounting standards and IAS/ IFRS.
Mark Covaleski,Mark Dirsmith,Sajay Samuel (1996). Social Constructionist Research in Accounting: A Reflection on the Accounting Profession.
Mark Covaleski,John Evans,Joan Luft,Michael Shields (2003). Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration.
Robert Deatherage (2021). Security on a Budget.
P Delvaille,G Ebbers,C Saccon (2005). International financial reporting convergence: evidence from three continental European countries.
G De Franco,S Kothari,R Verdi (2011). The Benefits of Financial Statement Comparability.
Roberto Di Pietra,Stuart Mcleay,Angelo Riccaboni (2001). Regulating Accounting Within the Political and Legal System.
Christine Doxey (2021). The Controller's Toolkit.
B Ekholm,J Wallin (2011). The Impact of Uncertainty and Strategy on the Perceived Usefulness of Fixed and Flexible Budgets.
M Epstein,J-F And Manzoni,A Dávila (2005). Performance Measurement and Management Control: Innovative Concepts and Practices.
M Epstein,J Manzoni (2010). Performance Measurement and Management Control: Innovative Concepts and Practices.
Sid Ewer (2007). Transparency and Understandability, But for Whom?.
Natalie Frow,David Marginson,Stuart Ogden (2010). “Continuous” budgeting: Reconciling budget flexibility with budgetary control.
D Ghandour (2021). Analytical review of the current and future directions of management accounti and control system.
A Gharairi (2020). Special Issue title page.
J Godfrey,K Chalmers (2007). Globalisation of Accounting Standards.
Axel Haller (2002). Financial accounting developments in the European Union: past events and future prospects.
A Haller,P Walton,B Raffournier,B (2003). International accounting.
Axel Haller,Brigitte Eierle (2004). The Adaptation of German Accounting Rules to IFRS: A Legislative Balancing Act.
J Hope,R Fraser (1997). Beyond budgeting… Breaking through the barrier to the third wave.
J Hope,R Fraser (2000). Beyond budgeting.
J Hope,R Fraser (2003). Who needs budgets?.
Anthony Hopwood (1972). An Empirical Study of the Role of Accounting Data in Performance Evaluation.
A Hopwood (1973). An accounting system and managerial behaviour.
Anthony Hopwood (1974). An Empirical Study of the Role of Accounting Data in Performance Evaluation.
Anthony Hopwood (1976). Human resource accounting.
Anthony Hopwood (1987). The archeology of accounting systems.
A Hopwood,Peter Miller (1994). Accounting as social and institutional practice.
A Hopwood (1999). Editorial.
Anthony Hopwood (1983). On trying to study accounting in the contexts in which it operates.
Anthony Hopwood (1990). Ambiguity, knowledge and territorial claims: Some observations on the doctrine of substance over form: A review essay.
A Hopwood (1990). Accounting and the pursuit of efficiency.
Anthony Hopwood (2000). Understanding financial accounting practice.
Anthony Hopwood (2007). Whither Accounting Research?.
A Hopwood,C Chapman,M Shields (2007). Handbook of management accounting research.
A Hopwood,C Chapman,M Shields (2007). Handbook of management accounting research.
A Hopwood (2008). Changing Pressures on the Research Process: On Trying to Research in an Age when Curiosity is not Enough.
Anthony Hopwood (2009). Accounting and the environment.
Anthony Hopwood (2009). The economic crisis and accounting: Implications for the research community.
A Hopper,J Burns,M Yazdifar (2004). Management accounting education and training: putting management in and taking accounting out.
C Horngren,G Sundem,W Stratton (2013). Introduction to Management Accounting.
Gregory Jonas,Jeannot Blanchet (2000). Assessing Quality of Financial Reporting.
M Jensen (2001). Corporate budgeting is broken -let's fix it.
Jon-Arild Johannessen (2021). Continuous Change and Communication in Knowledge Management.
Michael Jones,Malcolm Smith (2014). Traditional and alternative methods of measuring the understandability of accounting narratives.
Robert Kaplan,Steven Anderson (2007). Time-Driven Activity-Based Costing.
R Lewandoski,A Goncharuk,J Deforowsky (2020). Commercialization and Industry Perspective in the Era of Digitalization.
Theresa Libby,R Lindsay (2010). Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice.
Bill Katz (2019). The Acquisitions Budget.
Andreas Kuhnle,Jan-Philipp Kaiser,Felix Theiß,Nicole Stricker,Gisela Lanza (2021). Designing an adaptive production control system using reinforcement learning.
Gerald Miller,W Hildreth,Jack Rabin (2019). Performance-Based Budgeting.
Henry Mintzberg,James Waters (1985). Of strategies, deliberate and emergent.
Anna Moisello (2021). ABC: Evolution, Problems of Implementation and Organizational Variables.
J Morton (1974). Qualitative Objectives of Financial Accounting: A Comment on Relevance and Understandability.
J Mouritsen,K Kreiner (2016). Accounting, decisions and promises.
J Morrel (2018). How to Forecast: A Guide for Business.
S Nillson (1997). Understandability of Narratives in Annual Reports.
C Nobes,S Aisbitt (2001). The True and Fair Requirement in Recent National Implementations.
C Nobes,M Gee,A Haller (2010). The Influence of Tax on IFRS Consolidated Statements.
Christopher Nobes (2013). The continued survival of international differences under IFRS.
C Nobes (2016). Towards an Assessment of Country Effects on IFRS Recognition Decisions and Measurement Estimations.
C Nobes,R Parker (2016). Comparative International Accounting.
C Nobes,C Stadler (2015). The Qualitative Characteristics of Financial Information, and Managers' Accounting Decisions: Evidence from IFRS Policy Changes.
A Obaidat (2007). Accounting Information Qualitative Characteristics Gap: Evidence from Jordan.
D Oderlheide (2001). Transnational Accounting.
S Onyshchenko,A Berezhna,О Filonych (2021). Budget Mechanism: Methodological Approaches to and the Practice of Budget Decentralization.
C Patel,R Day (1996). The influence of cognitive style on the undersandability of a professional accounting pronunciement of by accounting students.
M Rankin,P Stanton,S Mcgowan,K Ferlauto,M Tilling (2012). Contemporary Issues in Accounting.
Lars Samuelson (1986). Discrepancies between the roles of budgeting.
W Schoen (2004). International accounting standards -a 'starting point' for a common European taxbase.
E Schorck,H Lefebre (2021). The good and the bad news about quality.
R Simons (1995). Levers of Control.
N Slighy,V Taffurelli,M Iber,A Doyle (2021). Budgeting Lesson and Stories, in Growth, Creativity and Collaboration: Great Vision on a Great Lake.
Malcolm Smith,Richard Taffler (1992). Readability and Understandability: Different Measures of the Textual Complexity of Accounting Narrative.
M Smith (2021). Who controls the past... controls the future.
M Steven,Floryt,J Phillips,Maurice Tassin,F (1992). Measuring readability: A comparison of accounting textbooks.
Walter Schwaiger (2015). The REA Accounting Model: Enhancing Understandability and Applicability.
Wim Van Der Stede,Wagenhofer (2000). The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation.
A Wagenhofer (2006). Management accounting research in German-speaking countries.
A Wagenhoferb,R Göxa (2009). Optimal impairment rules.
J Wagner,P Petera,B Popesko,P Novák,K Šafr (2021). Usefulness of the budget: the ,mediating effect of participative budgeting and budget-based evaluation and rewarding.
T Webster,G Yee (2021). Web based energy information and control systems.
Aaron Wildavsky (2017). Budgeting and Governing.
Stephen Zeff (2013). The objectives of financial reporting: a historical survey and analysis.
Kristi Yuthas,Rodney Rogers,Jesse Dillard (2002). Communicative Action and Corporate Annual Reports.

Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Maria Silvia Avi. 2026. \u201cFinancial Reporting Destined to External Third Parties as a Tool for Analysing Creditworthiness: Usefulness and Limitations. The Italian Case\u201d. Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 22 (GJMBR Volume 22 Issue A8): .

More Citation Formats

Select Citation Style:

Download Citation

Download Article

GJMBR Volume 22 Issue A8
Pg. 69- 106

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Not Found

Classification

GJMBR-A Classification: DDC Code: 332.63230973 LCC Code: HG3751.7

Submission ReceivedNovember 2, 2022
Peer Review Double Blind
Handling Editor
Accepted November 7, 2022
Published November 11, 2022

Version of record

v1.2

Issue date

November 22, 2022

Language

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Views: 1412

Total Downloads: 50

2026 Trends

Published Article

Our website is actively being updated, and changes may occur frequently. Please clear your browser cache if needed. For feedback or error reporting, please email [email protected]