Victoria University

Identifying Decision Useful Information With the Matrix Format Income Statement

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Show simple item record Brown, Phil Bradbury, Michael van Zijl, Tony Hancock, Phil Woodliff, David Tarca, Ann 2008-04-07T03:46:23Z 2008-04-07T03:46:23Z 2007 2007
dc.description.abstract We conduct an experiment to investigate the potential benefits of an alternative format for the income statement, the matrix format, initially developed by the IASB and UK ASB in their joint project on performance reporting. Sophisticated financial statement users (financial analysts and professional accountants) and less sophisticated financial statement users (MBA students) were asked to extract information from a set of financial statements that included an income statement either in the IAS 1 format or in the matrix format. We find that the matrix format improves the accuracy with which users extract financial information. This result is driven by greater accuracy, for all user groups, on ‘belowtheline’ items. Furthermore, despite lack of familiarity with the matrix format, its use did not appear to affect the time taken, the ease of extracting financial information, or users’ task completion confidence; further experience with the matrix format could lead to benefits along these lines as well. Our findings may assist the FASB and IASB in their joint project on financial statement presentation. en_NZ
dc.language.iso en_NZ
dc.publisher Victoria University of Wellington en_NZ
dc.relation.ispartofseries Working Paper en_NZ
dc.relation.ispartofseries No. 55 en_NZ
dc.subject Accuracy en_NZ
dc.subject Financial reporting en_NZ
dc.subject Income and expediture en_NZ
dc.title Identifying Decision Useful Information With the Matrix Format Income Statement en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit School of Accounting and Commercial Law en_NZ
vuwschema.contributor.unit Centre for Accounting, Governance and Taxation Research en_NZ
vuwschema.subject.marsden 350100 Accounting, Auditing and Accountability en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ

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