Financial Reporting Quality of Audiovisual Services Companies in Albania during the Digitalization Process

Abstract

The digitalization process brought a series of challenges for Albanian audiovisual services companies, one of them is the financial reporting quality. Financial statements, apart from being key to the market evaluation of a company, serve to communicate with the interested public, hence their quality takes on a first-hand importance in an environment that is competitive and simultaneously rapidly changing. This study focuses on the challenges related to the existing financial reporting methodology of Albanian audiovisual companies in the conditions of the transformation of the television industry. The research questions intended to be answered are: Has the financial reporting methodology of audiovisual companies changed as a result of digital transformation? Are there unreported items in the financial statements, and if so, which are they? How does the exclusion of specific items affect the analysis of the financial performance of companies? How is financial reporting conducted through company websites? In order to conduct  the study, we relied on the analysis of the financial statements  content of five private national audiovisual entities and the public operator (RTSH/Albanian Radio Television) for a period of 6 years (2017-2022); qualitative empirical data obtained from in-depth interviews with accounting experts, legal auditors as well as on previous studies. The study findings show that the existing financial reporting methodology of audiovisual companies does not meet the needs and expectations established by transformations in the television industry enhanced by technological developments.