Abstract:

Information generated in the accounting information system is useful in the decision-making process if it has certain qualitative characteristics. Intensive use of information technology in day-to-day business operations has a significant impact on the disclosing of accounting information to users, where Internet is emerging as a new financial reporting environment, especially for external users. Communicating financial information to users through Internet financial reporting has been widely studied in recent years and it is necessary to systematically analyse research results of conducted studies in order to identify and analyse the problems and trends in this kind of financial reporting. The purpose of this paper is to determine the qualitative characteristics that affect the usefulness of accounting information, based on the Conceptual Framework for Financial Reporting, as well as to analyse the role and importance of the latest information technology in ensuring the quality of financial reporting. Namely, the usefulness of accounting information is related to the ways and techniques of its presentation. In this regard information technology has a particularly important role, which indicates the need for further research of the role and impact of information technology on the final stage of the accounting process, i.e. on the qualitative characteristics of accounting information. Previous scientific research was more focused on the usage of information technology in the phases of collecting data and processing accounting information and less on the ways of disclosing information to users. This paper analyses Internet financial reporting practice as a specific reporting environment as well as the characteristics of companies that disclose financial information on Internet by undertaking thorough review of most pertinent research. Analysis of recent research findings on internet financial reporting in Europe will provide an insight into existing trends and practices and will serve as a basis for examining gaps and providing recommendations for further development of content and format of financial reporting with greater usefulness for users.