Financial accounting information presented with infographics: does it improve financial reporting understandability?

Cohen, Sandra ; Manes Rossi, Francesca ; Mamakou, Xenia ; Brusca, Isabel (Universidad de Zaragoza)

Resumen: PurposeGovernmental financial reporting is prepared for accountability and decision-making purposes and is directed to a wide range of users, including citizens. However, this may sound easier than it actually is as citizens without specific accounting knowledge may find it difficult to understand the financial information prepared by governments. The study analyzes citizens' perceptions toward infographics as well as their ability to improve accounting understandability by nonaccounting experts compared to the traditional financial statements.Design/methodology/approachThe paper presents the results of an exploratory analysis conducted with the participation of a group of citizens in three European countries through a questionnaire.FindingsThe results show that infographics improve accounting understandability by nonaccounting experts compared to the traditional financial statements. However, infographics alone are not enough to succeed in making nonaccounting literate citizens experts in fully understanding accounting information.Originality/valueThe novelty of the research consists in its ability to give voice to citizens' preferences regarding the way the financial information is presented, which has been largely neglected by previous studies. In parallel, it analyzes the effect of accounting knowledge on accounting understandability. Moreover, it is the first study that analyzes the use of infographics in public sector financial reporting.

Idioma: Inglés

DOI: 10.1108/JPBAFM-11-2021-0163

Año: 2022

Publicado en: Journal of public budgeting, accounting & financial management 34, 6 (2022), 263-295
ISSN: 1096-3367

Factor impacto CITESCORE: 5.3 - Business, Management and Accounting (Q1) - Social Sciences (Q1)

Factor impacto SCIMAGO: 0.838 - Business, Management and Accounting (miscellaneous) (Q1) - Finance (Q1) - Public Administration (Q1) - Strategy and Management (Q2) - Economics and Econometrics (Q2)

Tipo y forma: Artículo (Versión definitiva)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)