Title:
The Impact of Recognition of Land and Water Settlement Revenue on the Fundamental Qualitative Characteristics of Financial Information: An Empirical Study on the “Palestinian Municipal Councils in the Northern Governorates”

Authors:
Kamel H.M.AbuKweik, Palestine

Abstract:

This study aims to examine, measure and analyze the effect of the land and water settlement revenue on the fundamental qualitative characteristics of the financial information of Palestinian Municipal Councils in the northern governorates. The study population was 75 Municipal Councils in the northern governorates. A stratified simple random sampling technique was implemented for the samples of the present research. In order to achieve study objectives, the descriptive approach was adopted to describe the phenomenon in an accurate and quantitative manner by organizing the data and presenting the results in tables, the inductive approach was used to answer the hypotheses of the study, through a questionnaire prepared by the researcher, and judged by members of the specialized committee. The study model included independent variables and dependent variables represented by fundamental qualitative characteristics through relevance and its dimensions (predictive value, confirmatory value, and materiality) and faithful representation and its dimensions (completeness, neutrality, and freedom from errors).The study came out with a set of results, the most important of which were: (1) There is an effect of the recognition of land and water settlement revenue on the fundamental qualitative characteristics of the financial information. (2) There is a positive relationship between the recognition of land and water settlement revenue (revenue realization and earned) and the availability of the property of relevance in the financial statements in its three dimensions (predictive value, confirmatory value, and materiality). (3) There is a positive relationship between the recognition of land and water settlement revenue and the availability of faithful representation in the financial statements in its three dimensions (completeness, neutrality, and freedom from errors).Municipal Councils faces many obstacles that prevent proper application of the recognition of land and water settlement revenue in accordance with international accounting standards. In the end, based on study outcomes, the researcher made a set of important recommendations for further research on this critical issue.

DOI: https://doi.org/10.51505/IJEBMR.2022.61201