Decision Usefulness Approach to Financial Reporting: A Case for Employees

( Vol-3,Issue-5,May 2017 )

Author(s): Ali Abdulridha Jabbar

Total View : 1061
Downloads : 164
Page No: 481-487
DOI: 10.24001/ijaems.3.5.12

Keywords:

Financial Reporting, Employees and Accounting Approach.

Abstract:

Financial reporting it centers on about the FRS 101 known as presentation of financial statements. The International Accounting Standard Board (IASB) develop this standard to revised IAS 1 for improvement the qualities when present in the financial statement. FRS 101 is usually based on IAS 1 presentation of financial statements issued by IASB. That means, compliance the FRS 101 also will cause compliance with IAS 1. There are no different between two accounting standards. This paper describes and underlying criticism raised in the decision usefulness approach of financial reporting in the case of employees. The employees of the company can be categorized into two, i.e., the present and prospective employees. This paper examines why the reward system and corporate social responsibility must be used by organizations as an instrument for employees to improve their living conditions. The underlying significant role which employees play in organizational development has drawn considerable attention all over the world because the employees as the key to ensuring tactics and strategis of company’s run successfully. The argument is that employees increase the performance of the organizations through efficient and effective information that comes from financial reporting.

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