Abstract

COMPARATIVE STUDY OF QUALITATIVE FEATURES OF FINANCIAL REPORTS PROVIDED IN MODERN FINANCIAL SYSTEM VERSUS CASH ACCOUNTING IN MINISTRY OF HEALTH

Sadegh Mahdavi Nia and *Abbas Yazdanpanah

Abstract

Universities of Medical Sciences have started using accrual accounting basis from 2015. The present study examines qualitative level of information provided in financial reports of the state medical sciences universities as a comparison between accrual basis and cash basis. This study is of survey applied type which includes 150 managers and financial experts of the state medical sciences universities in 2015. The study information was collected using 36-question inventory from 7- option Likert scale and descriptive and inferential statistical methods such as Kolmogorov- Semenov were used for examining normality of data and independent t-test and ANOVA variance analysis were used. The results of analyses show that there is a significant difference between information provided in financial reports based on accrual accounting basis and cash accounting basis in respect of qualitative features of financial information such as pertain, faithful statement, being apprehensible, being timely, being comparable, being predictable and being reliable. Regarding the study findings and theoretical framework of public sector reporting and approval of first to third standards of public sector accounting in Iran, the results obtained from the present study indicates inevitability of establishment and implementation of accrual accounting basis in all state administrative systems.

Keywords: information qualitative feature, financial reporting, modern financial system (accrual accounting), cash accounting, Ministry of Health, Treatment and Medical Education.