The Factors Affecting Accounting Estimation" Depreciation Allowance" and Its Effect on Reliability of Financial Reports – Applied Study in Yemen Corporates, Hadramout –: أثر التقدير المحاسبي لمجمع الإهلاك في مصداقية التقارير المالية – دراسة ميدانية على الشركات اليمنية بحضرموت –

Abstract

The study aimed to identify the effect of the accounting estimate on the reliability of the financial reports. The study identified three factors that affect the accounting estimate, which are the subject of the estimation, the estimation tool, and the estimator, in the estimation of depreciation provisions, the researchers adopted the descriptive analytical approach; By following the studies and literature in accounting thought, and designing a questionnaire that was distributed to the sample selected for the study. The study reached a set of results, including that the reliability of the financial reports is affected by the subject of the estimation, the estimation tool and the estimator. The depreciation provision is affected by factors including the efficiency of determining the useful life of the asset, the extent to which the asset is used in production, the efficiency of estimating the residual value. One of the most important factors affecting the estimation tool is the flexibility in applying accounting principles and standards, the large size of companies and the size of the profits obtained by the establishment. The most important factors affecting the estimator are the availability of the necessary expertise for those in charge of accounting estimates, the nature and size of the activities that the companies engage in, the extent of the accountant’s knowledge of them, and the absence of an independent Yemeni reference body or organization that trains, qualifies and protects those responsible for accounting estimates. The study recommended the necessity of working on qualifying and training the estimators and finding a reference for them to protect them from management interventions in a way that achieves effective and efficient performance and protects them from legal accountability.