Readability to Financial Report: A Comparative Study of Chinese and Foreign Countries

Financial report readability is an important factor influencing the decision usefulness of accounting report, which has become a common concern problem of both accounting theory and practice. For study on financial report readability, it is gradually mature in foreign countries, but in China, due to the limited measurement method of readability and other factors, the study on financial report readability is less. In order to guide the future domestic study on financial report readability better, this article reviews the related literature at home and abroad in terms of the connotation of financial report readability, measuring method, influencing factors and the effects of financial report readability. The paper compares the study of financial report readability between that of domestic and foreign. At the same time, it analyzes the deficiency of the domestic research. Finally, the paper points out the future research.