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Title: | The effect of the SME guidelines on accounting and financial reporting on local small firms' financial reporting |
Authors: | Piscopo, Louise-Anne (2004) |
Keywords: | Accounting -- Malta Financial risk -- Malta Small business -- Malta |
Issue Date: | 2004 |
Citation: | Piscopo, L. (2004). The effect of the SME guidelines on accounting and financial reporting on local small firms' financial reporting (Bachelor's Dissertation). |
Abstract: | Since 1995, the issue of compliance with IFRS to small companies has raised questions to simplify accounting standards of small owner-managed, and medium sized enterprises, that require much less complex accounting. The Companies Act 1995 specifically requires that the financial statements be drawn in accordance with the Companies Act itself and GAAP, which requires adherence to IASs, now referred to as IFRSs. The main objective of this dissertation is to obtain the views of local accountancy practitioners were Malta to apply SMEGA. The study encompasses the description and explanation of the SMEGA provisions and determination of the benefits and the drawbacks associated with their application. The study also aims to throw light on the recent development on accounting by SMEs internationally and to assess current opinions on the future direction of small company reporting. A qualitative research approach is adopted throughout. The research broadly entails a series of interviews with the preparers of company financial statements with the purpose of obtaining their opinion on the UN SMEGA and on the local small firms' financial reporting environment. The research findings suggest the need for a different reporting framework for small companies although there are contrasting opinions on the SMEGA model. Owner-managers are indifferent as to whether they receive IAS compliant financial statements or not. What they strive for is value-adding information since they see no advantage in complex disclosures. Following a model such as SMEGA could satisfy this need. The contrasting opinions amongst practitioners reveal that much debate is necessary before any conclusions can be made. A course of action could be applying SMEGA level III to the micro companies, whilst waiting for the IASB SME standard for the medium companies. It is crucial for the Malta Institute of Accountants and the Accountancy Board to give priority to this issue, in order to sure that the needs of the users of financial reporting for SMEs are satisfied. Finally the dissertation encourages the promotion of active research concerned with the benefits gained by small enterprises in jurisdictions where differential reporting frameworks already exist. |
Description: | B.ACCTY.(HONS) |
URI: | https://www.um.edu.mt/library/oar/handle/123456789/82498 |
Appears in Collections: | Dissertations - FacEma - 1959-2008 Dissertations - FacEMAAcc - 1983-2008 |
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File | Description | Size | Format | |
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B.ACCTY.(HONS)_Piscopo_Louise_Anne_2004.pdf Restricted Access | 3.37 MB | Adobe PDF | View/Open Request a copy |
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