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

Cohen, Sandra; Rossi, Francesca Manes; Mamakou, Xenia J.; Brusca, Isabel

doi:10.1108/jpbafm-11-2021-0163

Cited by 10 publications

(6 citation statements)

References 38 publications

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“…We analyse the number and type of visual forms placed in the report. In general, as the previous research confirms, the text is more easily understood when accompanied by visual forms (Cromley et al, 2010;Cohen et al, 2022). Therefore, we expect that as universities change reporting to a more complex system, they will use visual forms to make the report more plain, understandable and user-friendly.…”

Section: Introductionmentioning

confidence: 75%

“…To avoid some of the adverse effects of this critical accounting reform and facilitate the perceptions of its introduction for stakeholders, institutions need to MEDAR 32,3 manage the disclosure of the information more effectively and proactively. A recent study by Cohen et al (2022), which finds that infographics improve understandability of reports, suggests one way to avoid the adverse effects.…”

Section: Introductionmentioning

confidence: 99%

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Intelligibility of communication with stakeholders after accounting system change: an exploratory data analysis of Italian universities

Fijałkowska,

Hadro,

Supino

et al. 2023

MEDAR

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Purpose This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and the readability of text that occurred immediately after the adoption of accrual accounting in performance reports of Italian public universities. Design/methodology/approach The authors collect the stakeholder section of performance reports published before and after accrual accounting adoption. Then, the authors use manual and computer-assisted textual analysis. Finally, the authors explore the data using principal component analysis and qualitative comparative analysis. Findings This study demonstrates that switching from cash to accrual accounting provokes immediate changes in communication patterns. It confirms the significant reduction of readability and increase in visual forms after accruals accounting adoption. The results indicate that smaller universities especially put effort into increasing intelligibility while implementing a more complex accounting system. This study also finds a relation between the change in readability and the change in visual forms that are complementary, with the exception of several very large universities. Practical implications The findings underline the possibility of neutralising the adverse effects of accounting reform associated with its complexity and difficulties in understanding by the use of visual forms and attention to the document’s readability. Originality/value This paper adds a new dimension to the study of public sector accounting from the external stakeholder perspective. It provides further insight into the link between accrual accounting adoption and readability, together with the use of visual forms by universities.

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Section: Introductionmentioning

confidence: 75%

Section: Introductionmentioning

confidence: 99%

Intelligibility of communication with stakeholders after accounting system change: an exploratory data analysis of Italian universities

Fijałkowska,

Hadro,

Supino

et al. 2023

MEDAR

View full text Add to dashboard Cite

show abstract

“…Neuronworks Indonesia found that the implementation of an adequate accounting information system had an impact on improving the quality of financial reports. (Cohen et al, 2022) recently researched to analyze citizens' perceptions of infographics and their ability to understand government financial reports. The study was carried out by exploratory analysis to obtain the participation of a group of citizens in three European countries through a questionnaire.…”

Section: H1mentioning

confidence: 99%

Quality Of Financial Statement And The Factors That Influence It

Pangaribuan

Sunarsi²,

Santoso³

et al. 2023

Jurnal Akuntansi

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This study aims to determine the effect of accounting standards, internal control systems and accounting information systems on the quality of the financial report. This quantitative study used a survey approach with a sample of 197 employees, using variance-based data analysis techniques. The results showed that applying accounting standards and internal control systems significantly affected the quality of the financial report. However, this was different with the application of accounting information systems. This implies that the application of accounting standards, internal control systems and accounting information systems are important in improving the quality of financial reports. This research provides important input contributions in efforts to improve the quality of financial reports.

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“…The use of visuals such as images, graphs and tables should also be exploited in a popular report (Sharp et al. , 1998; Del Gesso, 2022) as well as the use of infographics which appears to improve non-accounting experts' understandability (Cohen et al. , 2022).…”

Section: Content and Characteristics Of Popular Reportsmentioning

confidence: 99%

Users in preparers' shoes: mobilizing the sense of belonging in popular report development in local governments

Cohen,

Karatzimas

2023

JPBAFM

Self Cite

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PurposeThe scope of this study is to explore informed citizens' engagement in the development of real municipalities' popular reports. For this purpose, an exploratory experiment is performed where potential users of popular reports with certain accounting skills (i.e. groups of undergraduate accounting students) act as preparers of these reports.Design/methodology/approachThe study uses insights from the sense of belonging theory in an ambivalent way: to explain citizens' interest in popular reports and to consider popular reports as an impetus triggering citizens' sense of belonging. By content-analyzing the reports developed and taking stock of the students' perceptions on aspects of popular reports, a template for a popular report for local governments is synthesized. Further, by comparing the study findings with theoretical recommendations and popular reporting practices, the authors offer insights on the content and layout of popular reports which is expected to enhance the sense of belonging of citizens within their city.FindingsThe undergraduate students while relying on earlier examples and existing models have created their own reports in which they have used financial and non-financial information indicating the significance of both types of information for citizens. The evidenced heterogeneity in the developed reports is expected to be the effect of the sense of belonging. Moreover, the study reveals citizens' positive stance toward the adoption of co-development and co-creation approaches in the design of popular reports by citizen groups and municipal authorities which is consistent with a sense of belonging mobilization.Originality/valueThis study adds to the literature on the content and characteristics of popular reports by giving voice to the citizens themselves through an exploratory experiment that permits the sense of belonging to take effect.

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

Cited by 10 publications

References 38 publications

Intelligibility of communication with stakeholders after accounting system change: an exploratory data analysis of Italian universities

Intelligibility of communication with stakeholders after accounting system change: an exploratory data analysis of Italian universities

Quality Of Financial Statement And The Factors That Influence It

Users in preparers' shoes: mobilizing the sense of belonging in popular report development in local governments

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