Financial reporting quality (FRQ) plays a pivotal role in enabling stakeholders to make informed strategic and investment decisions. The revised conceptual framework issued by the International Accounting Standards Board (IASB) in 2018, effective from January 1, 2020, emphasizes that financial reporting should provide relevant, comparable, verifiable, timely, understandable, and faithfully represented information. High-quality financial reporting ensures transparency, accountability, and effective resource allocation, which are critical for investors, lenders, regulators, suppliers, and shareholders. Accurate and reliable financial information allows users to assess an organization’s cash flows, resource management efficiency, and overall financial health. It underpins decision-making processes related to investment, funding, and governance by providing insights into both inflows and outflows of funds. Research highlights that FRQ directly influences accountability in managing external sources of funds and enhances stakeholders’ confidence in financial disclosures. Consequently, organizations with high-quality financial reporting are better positioned to attract investment, optimize resource allocation, and maintain stakeholder trust. This study explores the significance of financial reporting quality in organizational decision-making and examines how it affects accountability, transparency, and stakeholder confidence. By analyzing FRQ within the framework of IASB standards, the research underscores its relevance for ensuring strategic and financial sustainability. The findings offer valuable insights for regulators, corporate managers, and investors on the importance of maintaining high standards in financial reporting to support effective governance and informed economic decisions
Alam et al. (Mon,) studied this question.