Introduction
Financial statements are raw data that have been converted into meaningful packets of information that offer “real and perceived value in current or prospective actions or decisions” (Davis and Olson, 1985 cited in Frezatti et al, 2006). In that sense information is a product and, reflecting on a consumer/purveyor type of exchange, the information-product is differentiated through its qualitative attributes (Wang et al., 1998). Hence, a financial organization needs to be in a position to determine which qualitative attributes of these packets add merit to the users’ experience and realign its financial informational strategy towards this path.
The aim of financial statements is to facilitate decision making process at a financial, social and political level so as to assist users with economic assessments as well as enhance the accountability process to the stakeholders of the organization (Collier, 2007, pp.110). Moreover, this practice also augments performance management for both managerial prowess and organisational realignments with the vision and mission of the organisation (Leicester University 2001, pp. 1.1). Although public and private companies are required by law to provide a minimum of financial information to stakeholders the latter do not have any legal right to exact any kind of information that they might require (Dyson, 2001, pp. 112-113). Nevertheless, financial statements should adhere to the mandates of the Companies Act 1985 and its subsequent amendments of 1989 and 2006 (TSO, 2006). Even so, different organizations present their statements in dissimilar ways, adopting approaches that are deemed conducive to the smooth flow financial information inside and outside of the organization.
The multitudinous data provided ...