Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
Survey of the Effect of Regulating Tax Accounting on Financial
Statements Credibility
Hossein Shafiei-Bafti*, Ali-Akbar Darvishi**, Mohammad Safa*** and Mehdi
Raad****
Financial statements users are interested on receiving clear and
trustable financial information. Some users of financial information
believe that regulating different aspects of financial reporting can
cause financial statements be more clear and credible. To achieve this
goal some groups of users tried to affect regulator bodies and change
rules and in some cases they caused companies become more and
more limited in choosing the method of reporting. Some governmental
agencies for solving this problem and complying governmental needs,
tried to regulate tax accounting environments. Governmental
regulation caused changes in financial statements reporting
environment and financial information quality that companies prepare
and render to different users and it caused mandatory reporting about
tax be increased. Some regulator bodies and researchers have
forecasted regulating tax reporting will increase financial statements
quality and credibility. In this survey different variables that regulating
tax accounting can affect financial statements credibility are examined.
The results of this survey have shown one of the most important
advantages of regulating tax accounting is increasing mandatory
disclosure and thus will increase financial statements clarity and
quality. Thus investors and other users are interested to betterment
and making a powerful tax reporting because they believe powerful tax
reporting will increase clarity and quality of financial reporting. In this
survey by using questionnaire the data required was gathered and
analyzed by Likert’s Spectrum and Z-test and for questionnaire
reliability Cronbach's Alpha model used.
JEL Codes: G01, G11, G14, G18 and H26
*Mr Hossein Shafiei-Bafti, Department of Accounting, Sirjan Branch, Islamic Azad University, Sirjan, Iran
Corresponding Author: hossein.shafii@gmail.com
**Mr Ali-Akbar Darvishi, MSc student in accounting, I.A.U Iran
***Mr Mohammad Safa, MSc student in accounting, I.A.U Iran
****Mr Mehdi Raad, MA student in governmental management, I.A.U Iran