Abstract
The aim of the research is to examine and evaluate the accounting information disclosure quality of the non-current tangible assets in the financial statements of the municipalities of Lithuania and identify municipality characteristics having an impact on the accounting information disclosure quality. Although the question of Lithuania public sector accounting information disclosure quality has been relevant since the Public Sector Accounting and Financial Reporting Reform in 2010, this research is the first of its kind in Lithuania. Based on the legal and regulatory requirements and related scientific literature, the research model of the accounting information disclosure quality in the financial statements has been created. Using the content analysis of consolidated annual financial statements of Lithuanian municipalities (years 2013–2016), the disclosure quality index has been calculated, as well as the accounting information disclosure quality of the tangible assets has been evaluated and compared. The results show that the quality of accounting information disclosure of Lithuanian municipalities in 2013 was low (revealed 37.87% of the mandatory information), while in subsequent years, the disclosure of mandatory information increased (to 45.50% in 2016) and the quality of information disclosure became average. Multiple panel regression analysis revealed that specific factors such as size of the municipality, municipality debt-paying capacity, municipality tangible assets, and municipality revenue, have a statistically significant impact on the accounting information disclosure quality.
Highlights
Accounting information is significant to internal and external information users to make reasonable decisions
We focus on the presentation of mandatory disclosure, i.e., disclosures required by the accounting standards in the financial statements
In order to carry out more extensive financial reporting quality in the Lithuanian public sector research, first, the status of FRQ must be evaluated
Summary
Accounting information is significant to internal and external information users to make reasonable decisions. It is noticed that the disclosure of information in the private and public sectors is insufficient. The issue of accounting information disclosure quality is encountered. Having analysed the existing research, Kundelienė (2009) distinguished two directions of accounting quality research. The accounting quality is evaluated under the informational aspect when the quality characteristics (properties) of accounting information are analysed. The research oriented to the issues of accounting information disclosure in the financial statements is reviewed
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