scholarly journals Voluntary coercion? Conditions for sustainable reporting by small and medium-sized enterprises

2021 ◽  
Vol 45 (4) ◽  
pp. 91-110
Author(s):  
Przemysław Mućko ◽  
Andrzej Niemiec ◽  
Wanda Skoczylas
Keyword(s):  
Financial Reporting ◽  
Value Chain ◽  
Small And Medium Enterprises ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Financial Information ◽  
Reporting Standard ◽  
Information Research ◽  
The One ◽  
Medium Enterprises

Purpose: The purpose of this paper is to identify the determinants and possibilities of dis-seminating sustainability reporting among small and medium-sized enterprises (SMEs) on the basis of the accounting theory, legal regulations, and the opinions of SME representa-tives. Methodology/approach: A review of the literature and other sources. Cluster analysis, the k-means method, and the one-way ANOVA test were used to prepare the results of the survey conducted through AAP. Findings: Only stakeholder theory provides explanations that are useful for identifying the determinants of the dissemination of sustainability reporting among SMEs. The major-ity of SMEs are indirectly obliged to report, as a result of maintaining relationships with entities that are required to report non-financial information on the entire value chain. In our survey, we identified two groups. The first represents skeptics. They do not report non-financial information and do not support the introduction of a single, simplified, EU sus-tainability reporting standard for SMEs. The second group believes that SMEs should report non-financial data. They are usually entities that already report such information. Research limitations/implications: The limitations of the study are due to sample se-lection and size. In the implications, we emphasized the advantages of indirectly obliging SMEs to report non-financial information by requiring that their key stakeholders collect such information. Originality/value: The article fills a gap in the literature by providing empirical research on non-financial reporting in SMEs. Keywords: non-financial reporting, corporate sustainability reporting, small and medium enterprises.

scholarly journals INTERNATIONAL FINANCIAL REPORTING STANDARDS FOR SMALL AND MEDIUM ENTERPRISE (IFRS FOR SMES) AND THE STATEMENT OF ACCOUNTING STANDARDS (SAS): A COMPARATIVE STUDY

2016 ◽  
Vol 1 (3) ◽  
pp. 79
Author(s):  
Muotolu Peace Chikwemma ◽  
Egungwu Ngozi Ursula ◽  
Anichebe Alphonsus Sunday
Keyword(s):  
Financial Reporting ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Accounting Standards ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reporting Standards ◽  
Entrepreneurial Spirit ◽  
Medium Enterprise ◽  
Medium Enterprises

Purpose: Micro, small and medium-sized enterprises (SME) are the engines that propel the world economy; they are essential sources of jobs, they create entrepreneurial spirit and innovation in the economy and are thus crucial for fostering competitiveness and creativity. The objective of this study therefore, is to ascertain the need for International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) instead of Statement of Accounting Standards (SAS), to ascertain the extent to which IFRS aids managements in attaining goals and objectives as well as improving its market share and to ascertain the challenges for Non-compliance (causes and penalties) with international financial reporting standard for Small and Medium Enterprises.Methodology: Analysis of variance (ANOVA) was used to test hypothesis.Results: The findings were; a major factor why IFRS is adopted by Nigeria is because other countries have adopted it, the size of entities to participate in IFRS for SMES varies, adopting a globally accepted financial reporting is relevant to small firms as they operate in a globalized world.Policy recommendation: This study recommends that the IASB should ensure full implementation/compliance of IFRS for SME by companies that fall under that category, the cost of acquiring IFRS education should also be subsidized for small firms by major accounting regulatory bodies in Nigeria.

scholarly journals FINANCIAL ACCOUNTING INFORMATION SYSTEM FOR SMEs WITH MODEL-BASED FINANCIAL REPORTING SAK ETAP

2017 ◽  
Author(s):  
Arasy Alimudin ◽  
Agus Dwi Sasono
Keyword(s):  
Information System ◽  
Financial Reporting ◽  
Interface Design ◽  
Small And Medium Enterprises ◽  
Financial Information ◽  
Financial Accounting ◽  
Demographic Trends ◽  
Accounting Information System ◽  
Human Resource Capacity ◽  
Medium Enterprises

The development of small and medium enterprises (SMEs) plays an important role in improving the economy of Indonesia. According to the study the Central Bureau of Statistics, demographic trends will increase Indonesia. This could be a threat and an opportunity. Demographic trends threat when the increase is only being targeted overseas businessmen. An opportunity when the Indonesian people were able to take this opportunity and vying to become an entrepreneur. SMEs, which independent small and medium sized enterprises constitute the most appropriate form of business for the nation of Indonesia. The great potential of MSMEs implementation is hampered by the inability of businesses in obtaining capital, which is one of the reasons, is the inability of MSMEs in presenting the financial statements. This is due to limited human resource capacity SMEs in understanding and preparing financial accounting statements according to standards known to be difficult for small and medium businesses.To solve these problems, then there needs to be a financial information system for SMEs applied for is user friendly, easy to use and is based on financial standards more easily and d = simple, the Financial Accounting Standards for Entities without Public Accountability (SAK ETAP). This paper discusses Reporting Model, functional design and interface design for a system of financial information of SMEs on the basis of SAK-ETAP.

scholarly journals Compliance Factors of Malaysian Private Entity Reporting Standard (MPERS) by Small Medium Enterprises (SMEs)

2021 ◽  
Vol 12 (3) ◽  
pp. 149
Author(s):  
Nurul Nazlia Jamil ◽  
Nathasa Mazna Ramli ◽  
Ainulashikin Marzuki ◽  
Nurul Nadiah Ahmad
Keyword(s):  
Financial Reporting ◽  
Questionnaire Survey ◽  
Small And Medium Enterprises ◽  
Local Context ◽  
Reporting Standard ◽  
Factors Affecting ◽  
Reporting Practices ◽  
Private Entity ◽  
Small Medium Enterprises ◽  
Medium Enterprises

The study objectively reports the findings on a questionnaire survey when examining the factors affecting Malaysian Private Entity Reporting Standard (MPERS) compliance in Malaysia by small and medium enterprises (SMEs). The study is based on a professional accountant questionnaire survey involving a sample of 176 respondents who are currently involved in the implementation of MPERS. The result reveals that the main factors affecting the SMEs' compliance with MPERS were the legal limitations and requirements. The study also finds that the perception, size of entities, management and accounting skills of the external user, and consideration of costs and benefits, have little impact on MPERS compliance. Furthermore, the study contributes to the literature of the financial reporting standard for SMEs by providing empirical from Malaysia's local context that uses MPERS and how the theses affect reporting practices. To adopt the 'true and fair view' financial reporting standard when explaining the firm's financial performance and financial position, this study should be the interest of regulatory authority, standard setters, and owners of SMEs themselves.

scholarly journals Factors Affecting the Adoption of Financial Reporting Standards by Micro, Small and Medium Enterprises in Tanzania: The Case of Mbeya City Council

2021 ◽  
Vol 4 (1) ◽  
pp. 46-61
Author(s):  
Benance Lackson ◽  
Seif Muba
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
City Council ◽  
Primary Data ◽  
Reporting Standards ◽  
Chi Square ◽  
Reporting Standard ◽  
Financial Reporting Standards ◽  
The Government ◽  
Medium Enterprises

Different studies have revealed that the majority of the micro, small and medium enterprises (MSMEs) in Tanzania do not use basic accounting principles and practices which are consistent with financial reporting standards in managing business though Tanzania adopted International Financial Reporting Standards for small and medium enterprises (IFRS for SMEs) in 2009 and issued financial reporting standard for Micro entities in 2018. This shows that the level of adoption and applicability of the standards is very low. Therefore, this study was carried out to assess factors that affect the adoption of financial reporting standards by MSMEs in Tanzania. The study was conducted in Mbeya City Council where primary data was collected from a sample size of 245 respondents via a Likert scale questionnaire. The descripto-explanatory research design was employed where the results were quantitatively analysed through descriptive statistics and chi-square (x2) model hypothesis testing. The results show that non-adoption of the standards was the result of inadequate knowledge by MSMEs, lack of awareness by most MSMEs on the existence of the standards, high perceived cost of conversion and implementation, weak legal and regulatory enforcement strategy, low level of technology applicability by SMEs and complexity of the standards as it needs a well-trained accountant to implement. The study recommends the government to come up with the implementation strategy that will first ensure that a large number of MSMEs is well trained on financial reporting standards because the decision to adopt or not to adopt largely depend on the adequacy of knowledge.

The multi-faceted dimensions for the disclosure quality of non-financial information in revising directive 2014/95/EU

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simona Fiandrino ◽  
Melchior Gromis di Trana ◽  
Alberto Tonelli ◽  
Antonella Lucchese
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Financial Information ◽  
Public Consultation ◽  
Disclosure Quality ◽  
Consultation Process ◽  
Content Type ◽  
Management Procedure

PurposeThe aim of this paper is to provide the state of the art in the academic and professional debate on the disclosure quality of NFI. This analysis is driven by the need to feature the dimensions of NFI quality that should be considered to improve the current regulatory framework towards a more transparent disclosure.Design/methodology/approachThe research is an integrative literature review that assesses and synthesizes the scientific knowledge and the annexed documents collected during the public consultation for the Review of Non-financial Reporting Directive (NFRD) on the disclosure quality of non-financial information (NFI).FindingsFindings show that there is a common consensus between scientific literature and the annexed documents of the consultation process on the Review of the NFRD on the need to enhance a double-materiality perspective, to provide specific contents on sustainability issues, to clarify the relevance of NFI, and to embed NFI into the management report in an integrated manner. Furthermore, there is an alignment related to timeliness in favour of a risk management procedure and a forward-looking approach.Research limitations/implicationsThe research engages the debate on the NFI disclosure quality, in light of the recent Review of NRFD and the new Proposal of Corporate Sustainability Reporting Directive that extends and enhances the non-binding reporting guidelines of NFI.Practical implicationsThe research provides a dashboard of the dimensions of NFI disclosure quality that aggregates the academics' and practitioners' knowledge systematically. It shows the interplay between the scholarly developments and the recent measures arisen in the consultation process to undertake NFI disclosure quality.Originality/valueThe research provides a lens to analyse, classify and interpret the insights emerged during the consultation process of the NFRD.

scholarly journals Preliminary Insights on the Adoption of International Financial Reporting Standard (IFRS) for Small and Medium Enterprises (SMEs) in Pakistan

2018 ◽  
Vol 4 (1) ◽  
pp. 95-110
Author(s):  
Zeeshan Mahmood ◽  
Allah Bakhsh Khan ◽  
Asad ur Rehman ◽  
Samreen Atta
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Securities And Exchange Commission ◽  
Structured Interviews ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Firm Level ◽  
Adoption Decision ◽  
Medium Enterprises ◽  
Chartered Accountants

This study aims to investigate the perceptions of accountants regarding the possible adoption of International Financial Reporting Standards (IFRS) for SMEs in Pakistan. IFRS for SMEs were issued by the IASB in 2009. The adoption of the IFRS for SMEs in Pakistan has been proposed by the Institute of Chartered Accountants of Pakistan (ICAP) and in 2015 the Securities and Exchange Commission of Pakistan (SECP) has approved the adoption of the 'International Financial Reporting Standard for Small and Medium Sized Entities. We conducted seven semi-structured interviews with the chartered accountants based in Multan that were providing accounting and consultancy services to various SMEs. The findings of the research confirmed the reasonable level of awareness among chartered accountants regarding IFRS for SME. Our respondents perceive high-quality comparable financial information as the most significant advantage of applying IFRS for SMEs whereas cost burdens on firms and lack of trained personnel were perceived as major obstacles for the adoption decision. The findings also suggest that diligent IFRS awareness and training programs must be organized by all regulatory and professional bodies (like SECP and ICAP) on both country and firm level to achieve the true purpose of this adoption.

AFRICA’S RENAISSANCE AND POTENTIAL IN THE LEATHER SECTOR WITH REFLECTION TO THE GLOBAL PERFORMANCE

2015 ◽  
Vol 2 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Mwinyihija M.
Keyword(s):  
Value Chain ◽  
Small And Medium Enterprises ◽  
Middle Level ◽  
Individual Member ◽  
Socioeconomic Indicators ◽  
Value Add ◽  
Medium Enterprises ◽  
The Impact ◽  
Productivity And Competitiveness ◽  
Critical Aspects

Africa’s renaissance is inevitable and rapidly emerging as a reality in tandem with the continent’s continued exploration of its natural resources in a more sustained way than previously done. Currently, the clarion call is to value add, avoid plundering and involve its population through the SME’s to adapt modern methods of entrepreneurship. During the study, critical aspects that are envisaged to trigger the growth and development of Africa, included the entry of major countries of the continent into the global emerging markets such as MINT (Mexico, Indonesia, Nigeria and Turkey) and BRICS (Brazil, Russia, India, China and South Africa). For the leather sector, certain socioeconomic indicators such as the youthful participation in the value chain, ownership status, literacy levels and acquired experiences are all contributing to a vibrant sector. It was observed that these indicators if well aligned with individual member states of African Union Commission and structured than productivity and competitiveness of leather products will be attained. As such, ease of either foreign direct investment, local recapitalization and development of the SME’s could become feasible. Indeed, with the emergence of over 300 million youth at middle level income level is construed to start building on the impact of the continents purchasing power. Therefore, Africa needs to respond by address on development of ICT, develop affordable financial support to provide stimulus packages to SME’s (Small and Medium Enterprises) to transform, improve on inter and intra trade to optimize on unexplored synergies and enhance mobility of persons with in Africa as preamble to Africa’s renaissance.

Incidence of Stakeholders in the corporate social responsibility of micro, small and medium-sized enterprises of Santa Marta

2018 ◽  
Vol 34 (62) ◽  
pp. 3-19
Author(s):  
Guillen León ◽  
Sergio Afcha
Keyword(s):  
Factor Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Value Chain ◽  
Training Programs ◽  
Small And Medium Enterprises ◽  
Corporate Management ◽  
Medium Enterprises ◽  
Corporate Social ◽  
The City

This article analyses the perception and application of corporate social responsibility (CSR) practices in a sample of 499 micro, small and medium enterprises (MSMEs) in the city of Santa Marta (Colombia) following the theory of Stakeholders. Specifically, the interdependence technique of exploratory factor analysis was used to determine the most influential Stakeholders in the execution of CSR practices. It was found that Stakeholders related to the value chain, the environment and corporate management favour social responsibility actions in local MSMEs. In contrast, community and government have less influence on the development of social responsibility practices in MSMEs. Additionally, it was found that the size of the business acts as an important moderator of the development of the CSR. Given that there is a distinctive influence of Stakeholders in the development of responsible practices in the MSMEs of Santa Marta, it is suggested that comprehensive training programs on social responsibility be promoted in smaller companies.

scholarly journals Why “Less is More” in Non-Financial Reporting Initiatives: Concrete Steps Towards Supporting Sustainability

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Georgina Tsagas ◽  
Charlotte Villiers
Keyword(s):  
Financial Reporting ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Integrated Reporting ◽  
Less Is More ◽  
Csr Reporting ◽  
Corporate Reporting ◽  
Long Run ◽  
The Individual ◽  
Key Aspects

AbstractCalls are repeatedly made on corporations to respond to the challenges facing the planet from a sustainable development perspective and governments take solace in the idea that corporations' transparency on their corporate activity in relation to sustainability through voluntary reporting is adequately addressing the problem. In practice, however, reporting is failing to deliver truly sustainable results. The article considers the following questions: how does the varied reporting landscape in the field of non-financial reporting impede the objectives of fostering corporations' sustainable practices and which initiative, among the options available, may best meet the sustainability objectives after a decluttering of the landscape takes place?The article argues that the varied corporate reporting landscape constitutes a key obstacle to fostering sustainable corporate behaviour, insofar as the flexible and please all approach followed in the context of corporate sustainability reporting offers little to no real incentive to companies to behave more sustainably and ultimately pleases none in the long run. The case made is that “less is more” in non-financial reporting initiatives and hence the article calls for a revision of key aspects of the European Non-Financial Reporting Directive, which, as is argued, is more likely to achieve the furtherance of sustainable corporate behaviour. Although the different reporting requirements offer the benefits of focussing on different corporate goals and activities, targeting different audiences and allowing for a level of flexibility that respects the individual risks to sustainability associated with each industry, the end result is a landscape that lacks overall consistency and comparability of measurements and accountabilities, making accountability more, rather than less, difficult to achieve.The article acknowledges the existence of several variances relating to the notion of sustainability per se, which continues to remain a contested concept and variances between companies and industries in relation to how each is operating sustainably or unsustainably respectively. Such variances have so far inhibited the legislator from easily outlining through tailored legislation the individual risks to global sustainability in an all-encompassing manner. The end product is a chaotic system of financial reporting, CSR reporting, non-financial reporting and integrated reporting and little progress to increase comparability and credibility in order for companies to be held accountable and to behave in ways that do not harm the planet. A “clean up” of the varied initiatives in the terrain of non-financial reporting is recommended.

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