The Usefulness and the Requirements of Local Financial Reporting for Financial Decision-Making in Credit Institutions
Antonio Manuel López Hernández
Carmen Caba Pérez
In spite of the fact that financial reporting information has been aimed mainly at internal users and audit offices, this has changed in recent years. There are now many authors and organisations that widen the range of potential users, among which we should mention financial institutions, due to their particular importance. In that context, this paper aims to obtain evidence on the information that is shown to be useful to these users in their decision-making, by looking at the financial reports that local organisations have to draw up, as well as analysing to what extent certain financial statements, to be included in the current accounting system following its adaptation to the General Public Accounting Plan (PGCP), can also be of use to the aforementioned users. Finally, this paper studies whether other criteria need to be added, or whether the information is not exhaustive enough when making decisions In order to achieve our goals, we have interviewed credit institution risk analysts and their answers lead to the conclusion that, if their needs are to be taken into account, the compulsory accounting information provided by local bodies needs to be modified or should be more exhaustive.
users, needs, the usefulness of local financial reporting, credit institutions.
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