Quality of Annual Reporting: The Empirical Evidence from Banks in Cambodia

This paper aims to evaluate the quality of the annual reporting of fifty bank institutions in Cambodia. High quality of financial reporting is the sole method for the stakeholders such as managers, employees, customers, and especially governments, creditors, and investors to understand about financial position of a company. Base on the qualitative characteristics of IFRS, financial reportings quality contains Fundamental concepts (relevance and faithful presentation) and Enhancing concepts (comparability, verifiability, timeliness, and understandability). The study used annual reports of fifty banks in Cambodia published in 2016. Using a five-point Likert type scale on 33 questions and 100 participants, the result has shown that the annual reports needs more improvement especially on quality of consistency. Among the seven qualitative characteristics of annual reporting, consistency of annual reports of bank in Cambodia receives less rating scale, 1.99. However, none of the other qualities reach 3.00 rating scale, which indicate that the annual reports need more improvement in all concepts. The annual reports should present the information in a faithful manner, increase relevance information and timely issue the annual reports.