|dc.description.abstract||The International Financial Reporting Standards (IFRS) stand for a generally applied accounting system across the globe. Many countries have required businesses to apply the IFRS. In light of the wide application of the IFRS and to enhance the connection between Taiwanese and international investment markets, the Financial Supervisory Commission of the Executive Yuan, Taiwan, promulgated in 2013 the mandatory adoption of the IFRS and has since required businesses to reformulate their financial statements in order to improve their international competitiveness. Because favorable internal control is the cornerstone of businesses success, whether the change in accounting system affects the reporting objective of business internal control becomes a topic to be investigated. Useful qualitative characteristics of financial information in the reporting content can support users’ decision-making.
This study investigates whether financial information quality mediates the effect of the IFRS on the internal control reporting objectives. A 7-point Likert scale is employed to design a questionnaire, copies of which are distributed to listed, over-the-counter, and emerging-stock businesses. SmartPLS 3 is adopted to perform exploratory statistical analysis. The results reveal that the IFRS characteristics do not have a significant direct correlation with the internal control reporting objectives. However, in terms of comparability, verifiability, understandability, and timeliness, the IFRS has a significant and positive correlation with excellent financial reporting quality. In other words, information qualitative requirements must be met to achieve reliability, timeliness, and transparency, and to satisfy the internal control reporting objectives demanded by the organization and stakeholders. The research outcomes can serve as references for business management to identify the key points of internal control reporting objectives, to enhance the reporting performances under the IFRS, and eventually, to increase business value.||en_US|