Financial reports quality from the students perspective

Abstract

For a market economy to function properly, it is essential that the information required by market participants is available in a timely manner and of the required quality. The quality of financial reporting usually comes to the fore when a corporate scandal results in significant damage to certain investor groups or other stakeholders.  Accounting reports should be prepared and published in accordance with internationally accepted standards (IFRS) and/or accepted country-specific accounting principles (GAAP). However, these standards alone cannot determine the quality of the published accounts. A financial report can be defined as the product at the micro level when viewed in the context of a complex accounting system. Both theoretical and practical approaches suggest that the greatest responsibility in quality respect lies with those who carry out the accounting activity and with managers. This research seeks to answer the question of how accounting students in Hungarian higher education institutions perceive the quality of financial reporting as future managers and decision-makers. This was explored in a pilot study conducted in April 2022, in which 119 third-year undergraduate students answered the question. Our study is not representative, but it has a signaling value.  They conclude that the students' approach is close to that of standard makers but differs in language and style. This conclusion may result from the different cultural, social, economic, linguistic, and educational contexts. The authors consider it essential that students consistently use and master accounting terminology during education, for which they primarily consider it necessary to employ professionals with theoretical knowledge and practical experience in accounting education.