Modeling the Impact Of The Qualitative Characteristics On The Usefulness Of The Financial Reporting

Subject: the aim of accounting is providing useful information for the users of annual reports. However, the research literature couldn’t help to judge about the relationship between qualitative characteristics and usefulness of financial reporting. The purpose of this research is investigating and determining the impact of qualitative characteristics on usefulness of financial reporting.
Methodology: analyzing the data has done by structural equations model. The LISREL, PLS, and SPSS software's have used to test the model, research reliability, and correlation between the qualitative characteristics respectively. The sample consists of 85 companies their information has investigated from 1376 to1389. Findings and Conclusions: except of seventh and ninth sub-hypothesis, other hypothesis have confirmed (conservatism and understandability have not meaningful impact on usefulness). In addition, there is interact relationship between conservatism and faithful representation and neutrality qualitative characteristics, relevance and reliability qualitative characteristics, and feedback and predictability qualitative characteristics. Therefore it recommended removing the conservatism from the list of the qualitative characteristics. Furthermore, since the impact of the relevance on usefulness is more than the impact of the reliability, so we can conclude the users of financial statements prefer the relevant information on the reliable information.