The Evolution of Financial Reporting Standards: Impacts on ‎Transparency and Accountability in Corporate Governance

  • Authors

    • Salomi Jacomina Hehanussa Universitas Kristen Indonesia Maluku, Indonesia
    https://doi.org/10.14419/rnqsta59

    Received date: June 5, 2025

    Accepted date: July 2, 2025

    Published date: August 26, 2025

  • Financial Reporting Standards; Transparency; Accountability; Corporate Governance; IFRS; GAAP Behavior

  • Abstract

    This study examines the evolution of financial reporting standards and their impact on transparency and accountability in corporate governance. Using a qualitative approach with literature study and content analysis methods, this study analyzes various literature and documents ‎related to the development of financial reporting standards, including IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles), as well as applicable regulations in various jurisdictions. Changes in global and national financial ‎reporting standards have been designed to improve the clarity of financial information and strengthen corporate accountability to stakeholders‎. However, implementation varies between companies, and the challenges of adapting new standards create differences in reporting quality-‎ty. The findings of this study show that evolving financial reporting standards have a positive impact on improving financial information ‎disclosure, thereby enabling stakeholders, including investors, regulators, and the public, to make more informed decisions. Increasingly ‎complex and integrated standards also play a role in strengthening the accountability mechanism in corporate governance. However, challenges faced in the implementation process, such as differences in practices between countries and gaps in understanding between financial ‎managers, hinder the achievement of full transparency goals. The study concludes that while the evolution of financial reporting standards ‎contributes significantly to increased transparency and accountability, the success of their implementation is highly dependent on the commitment of companies and the effectiveness of regulators in supervision. The recommendations of this study include the need for comprehensive training for financial practitioners and the strengthening of cross-border regulations to ensure harmonization in the implementation ‎of global financial reporting standards.

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  • How to Cite

    Hehanussa, S. J. (2025). The Evolution of Financial Reporting Standards: Impacts on ‎Transparency and Accountability in Corporate Governance. International Journal of Accounting and Economics Studies, 12(4), 692-699. https://doi.org/10.14419/rnqsta59