THE EFFECTS OF FORMAT ON THE EXTRACTION OF INFORMATION FROM ACCOUNTING STATEMENTS

The major objective of this research was to study the effects of three dimensions of accounting statement format on the ability of users to extract information from these statements. The three dimensions of format studied were: (1) account v report P & L statement format, (2) account v report Balance Sheet format, and (3) construction signalling. A fourth independent variable studied was learning trials. Results show that (1) the report P & L statement format produces higher extraction performance than the account format, (2) higher construction signalling results in higher extraction performance, and (3) as learning trials increase, extraction performance also increases, but at a decreasing rate. Balance Sheet format does not result in a significant main effect. However, when learning is low, and the P & L format is report, the report Balance Sheet results in higher extraction performance than the account Balance Sheet