Regression Analysis of Factors Affecting the Clarity of Consolidated Financial Statements
Mirzaman Salayev
Abstract. The article examines methodological factors affecting the clarity of consolidated financial statements. The theoretical framework is linked to the economic entity approach, the control criterion, elimination of intra-group transactions and application of uniform accounting policies. The empirical part is based on survey data collected from 152 respondents working in accounting, audit and financial management in the service sector. The Cronbach alpha coefficient for the Likert-scale items was 0.987. In the multiple linear regression model, the dependent variable was the perception that consolidated statements present the financial position more clearly than separate statements. The independent variables covered reconciliation of intra-group receivables and payables, elimination of intra-group transactions, harmonization of accounting policies, provision measurement and disclosure quality. The model demonstrated strong explanatory power: R²=0.944, F=489.509, p
Keywords: consolidated financial statements, regression analysis, intra-group transactions, provision calculation, statement of financial position, disclosure quality