THE EFFECTIVENESS OF FINANCIAL STATEMENTS IN MANAGEMENT DECISION MAKING

Abstract

Reports and financial statements is an important component management information system. Existence of the financial information of transparent and comparable is one of the main pillars of accountability executives and the basic needs of decision-makers of economic. Although information can be extracted from various sources, but now the financial statements will form the core of financial information resources, so it should be has good quality. The objective of financial statements is to provide information about the financial condition, results of operations and financial compatibility of a business unit that is useful for a wide range of users in making economic decisions. Financial statements prepared for this purpose cover the public needs for the majority of users. Most of the financial information provided in the financial statements in addition to other organizational factors affects the decisions of senior managers. Some of them are more effective at a high level decision-making and some of them at lower levels. In this paper is investigated the effectiveness of the financial statements on the managers' decision making.