Document Type : Research Paper

Authors

• Pouyan Mohammadi ¹
• hamideh asnaashari ²
• MohammadHosien SafarZade ³

¹ Shahid Beheshti University

² Assistant Professor of Accounting, Faculty of Management and Accounting, Shahid Beheshti university

³ Assistant Professor, Management and Accounting faculity, Shahid Beheshti University, Tehran, IRAN.

Abstract

The purpose of financial reporting is to present commercial and economic realities. Hiding these facts can lead to a chain of negative consequences for investors, lenders, customers, suppliers and employees. Meanwhile, there is a growing concern on the complexities involved in financial reporting. To this end, the present study set out to explain the complexity pattern of financial reporting drawing upon qualitative and grounded theory approaches. The statistical population of the research included experts in the field of financial reporting. using a targeted sampling approach, 26 experts in the field of financial reporting including financial managers, audit committees Chairs, managers of investment funds, partners of audit institutions and Credit managers of banks were selected as participants in the research. The data of the research were collected using the semi-structured interviews. The findings pointed to the complexity of financial reporting as encompassing 12 causes: Understanding the concept of complexity, preparers' knowledge, the company's capital structure, cooperation between institutions, the standard-setting body, the legislative body, the accounting standards, the structure of internal controls, the company's financial position, the company's board of directors, the auditors' skill and the user's ability to identify it as causal conditions. Then according to the contextual conditions (Macro, industry, company and reporting structure) and intervening conditions (the informing, characteristics of Chief financial officer, macro factors and new technologies), several strategies (Appropriate report format, appropriate standardization, application of laws and regulations, and empowerment of human resources and control structure), were developed Afterwards, the consequences including The outcomes of macroeconomic

Keywords

• complexity
• grounded theory approach
• financial reporting complexity

Main Subjects

• Financial Accounting
• Accounting report