International Journal of Accounting, Finance and Risk Management

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New Materiality Concept towards enhanced Financial Reporting Quality (FRQ)

Received: Dec. 27, 2023    Accepted: Jan. 08, 2024    Published: Feb. 05, 2024
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Abstract

The purpose of this study is to ascertain the current application of the materiality concept across financial reports of firms listed on the Egyptian Stock market (EGX), as well as it aims to empirically examine the effects of the new materiality concept on financial reporting quality (FRQ). Data utilized within the current study comprises secondary data gathered from the Egyptian stock market and company’s official website. Data collection method utilized within this study involved doing a content analysis of the yearly financial reports. The study population comprised 100 Companies that were listed on the Egyptian stock market (EGX 100 index) over two distinct time periods (period pre-application of new standards in 2018 and period post-application of new standards in 2021). The technique employed for data analysis was multiple linear regression analysis. Moreover, this study provides remarkable contributions to current literature body. Firstly, it provides a novel measure for the materiality concept. Furthermore, it provides new empirical evidence that materiality concept significantly impacts the financial reporting quality. The findings offer insights to the firms Listed on the Egyptian Stock Market regarding current practices of the materiality concept and how they can appropriately apply the new materiality concept across their financial reports.

DOI 10.11648/ijafrm.20240901.13
Published in International Journal of Accounting, Finance and Risk Management ( Volume 9, Issue 1, April 2024 )
Page(s) 19-28
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Materiality Concept, Financial Reporting Quality (FRQ), Egyptian Stock Exchange Market (EGX)

References
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  • APA Style

    Nasar, A. S. E. D. A. E. A. F. E. B. (2024). New Materiality Concept towards enhanced Financial Reporting Quality (FRQ). International Journal of Accounting, Finance and Risk Management, 9(1), 19-28. https://doi.org/10.11648/ijafrm.20240901.13

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    ACS Style

    Nasar, A. S. E. D. A. E. A. F. E. B. New Materiality Concept towards enhanced Financial Reporting Quality (FRQ). Int. J. Account. Finance Risk Manag. 2024, 9(1), 19-28. doi: 10.11648/ijafrm.20240901.13

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    AMA Style

    Nasar ASEDAEAFEB. New Materiality Concept towards enhanced Financial Reporting Quality (FRQ). Int J Account Finance Risk Manag. 2024;9(1):19-28. doi: 10.11648/ijafrm.20240901.13

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  • @article{10.11648/ijafrm.20240901.13,
      author = {Asmaa Salah El Dien Abd El alim Fath El Bab Nasar},
      title = {New Materiality Concept towards enhanced Financial Reporting Quality (FRQ)},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {9},
      number = {1},
      pages = {19-28},
      doi = {10.11648/ijafrm.20240901.13},
      url = {https://doi.org/10.11648/ijafrm.20240901.13},
      eprint = {https://download.sciencepg.com/pdf/10.11648.ijafrm.20240901.13},
      abstract = {The purpose of this study is to ascertain the current application of the materiality concept across financial reports of firms listed on the Egyptian Stock market (EGX), as well as it aims to empirically examine the effects of the new materiality concept on financial reporting quality (FRQ). Data utilized within the current study comprises secondary data gathered from the Egyptian stock market and company’s official website. Data collection method utilized within this study involved doing a content analysis of the yearly financial reports. The study population comprised 100 Companies that were listed on the Egyptian stock market (EGX 100 index) over two distinct time periods (period pre-application of new standards in 2018 and period post-application of new standards in 2021). The technique employed for data analysis was multiple linear regression analysis. Moreover, this study provides remarkable contributions to current literature body. Firstly, it provides a novel measure for the materiality concept. Furthermore, it provides new empirical evidence that materiality concept significantly impacts the financial reporting quality. The findings offer insights to the firms Listed on the Egyptian Stock Market regarding current practices of the materiality concept and how they can appropriately apply the new materiality concept across their financial reports.
    },
     year = {2024}
    }
    

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    T2  - International Journal of Accounting, Finance and Risk Management
    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
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    PB  - Science Publishing Group
    SN  - 2578-9376
    UR  - https://doi.org/10.11648/ijafrm.20240901.13
    AB  - The purpose of this study is to ascertain the current application of the materiality concept across financial reports of firms listed on the Egyptian Stock market (EGX), as well as it aims to empirically examine the effects of the new materiality concept on financial reporting quality (FRQ). Data utilized within the current study comprises secondary data gathered from the Egyptian stock market and company’s official website. Data collection method utilized within this study involved doing a content analysis of the yearly financial reports. The study population comprised 100 Companies that were listed on the Egyptian stock market (EGX 100 index) over two distinct time periods (period pre-application of new standards in 2018 and period post-application of new standards in 2021). The technique employed for data analysis was multiple linear regression analysis. Moreover, this study provides remarkable contributions to current literature body. Firstly, it provides a novel measure for the materiality concept. Furthermore, it provides new empirical evidence that materiality concept significantly impacts the financial reporting quality. The findings offer insights to the firms Listed on the Egyptian Stock Market regarding current practices of the materiality concept and how they can appropriately apply the new materiality concept across their financial reports.
    
    VL  - 9
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Author Information
  • Faculty of Commerce and Business Administration, Helwan University, Cairo, Egypt

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