Internet Financial Reporting


  I. Definition of internet:
    The internet is a global system of interconnected computer networks that use the standard protocol suite to serve billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business and   government networks   of local to global scope, that are linked by a broad array of electronic and optical networking technologies.
    The development of internet increased the possibilities to manage business information, not only for internal purposes of companies , but   also for external ones , and offered new ways of making commerce , publicity , as well as facilitating the communication with different parties (financial users or decision makers, customers, investors…) , so the internet served as an information super highway , it had been used for marketing applications in which firms market their status , positions to decision makers.
    Nowadays, with the rapid increase of internet usage, it has shown that many companies are attending to use this new technology to communicate with investors, creditors and even people who do analyze and criticize company’s financial reports. . The growth in the number of internet users over the years had a major impact on legal, financial and accounting frameworks and systems.

  II. Internet usages by companies increased in the past years and this can be attributed to several factors:

  1- The globalization process, by which companies tend to obtain funds worldwide without limiting its operations to domestic markets.
  2- The tendency to increase the control of companies by stakeholders (any group within or outside the organization that has a stake with the organization performance).
  3- Environmental uncertainty that is increasing, in which decision makers have some degree of insufficient information about environmental factors and some...