SME Reporting in Australia: Where to Now for Decision‐usefulness?

Handley, Karen; Wright, Sue; Evans, Elaine

doi:10.1111/auar.12179

Cited by 8 publications

(10 citation statements)

References 35 publications

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“…Furthermore, 48% of the respondents indicated that the nature, volume and complexity of disclosure required by MPERS is excessive (Question 6). This is consistent with Handley et al (2018) on the issues of loss of confidential information to competitors as disclosure of too much information to competitors could threaten the sustainability of SMEs.…”

Section: Other Issues In Interpreting and Applying Mperssupporting

confidence: 85%

Malaysia Private Entity Reporting Standard (MPERS) adoption for SMEs: Insights from Accounting Practitioners in Malaysia

Jamil

Ramli

Marzuki

et al. 2020

BER

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Small and medium enterprises (SMEs) have very significant contribution to economic growth of the countries as more than 95% of companies worldwide and employment are represented by the SMEs industries. Therefore, in increasing the harmonization of reporting standard of SMEs, Malaysia is moving aggressively towards the efforts by introducing the Malaysian 105 Private Entity Reporting Standard (MPERS) for SMEs starting from 1 st January 2016 onwards. MPERS is seen to bring opportunities to the business as it is adoption of international standard that has been designed to fits the local needs and the customization to the Malaysian business environment could ensure comparability of the locals with the international business. Hence, this research attempt to 1) examine the perceptions of accounting practitioners on MPERS implementation and 2) identify the problems encountered in applying MPERS in SMEs. This study provides pioneering evidence on the problems of the practitioners encountered when applying the MPERS through the 176 questionnaires survey that have been distributed to the accounting practitioners that involve with MPERS implementation for SMEs in Malaysia. The insights and perceptions obtained highlighting new dimensions to the inherent problem such as issues of consistency and guidance in applying the MPERS with the cost-effective manner. Thus, the issues of differences in judgements among the practitioners become a phenomenon in relation to the application of MPERS for SMEs. The findings of this study are of interest to standard setters and SMEs stakeholders in Malaysia and other countries.

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Section: Other Issues In Interpreting and Applying Mperssupporting

confidence: 85%

Malaysia Private Entity Reporting Standard (MPERS) adoption for SMEs: Insights from Accounting Practitioners in Malaysia

Jamil

Ramli

Marzuki

et al. 2020

BER

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“…; FERF ; Handley et al. ; Page ). However, most of these studies identify primary users as including insider shareholders (owners and managers), banks, tax authorities and some others (e.g., insurance companies, leasing companies and vendors).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The body of literature examining the information needs of private users is less extensive (e.g., Abdel-Khalik et al 1983;Barker and Noonan 1996;Carsberg et al 1985;FERF 2006;Handley et al 2017;Page 1984). However, most of these studies identify primary users as including insider shareholders (owners and managers), banks, tax authorities and some others (e.g., insurance companies, leasing companies and vendors).…”

Section: User Perceptions Of the Usefulness Of Financial Reportsmentioning

confidence: 99%

Are Financial Reports Useful? The Views of New Zealand Public Versus Private Users

Ehalaiye

Laswad

Redmayne

et al. 2018

Australian Accounting Review

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This study reports on surveys conducted with users of financial reports in New Zealand. We compare findings for users of reports of two types of for‐profit entities, namely those with public accountability (public entities) and those with no public accountability (private entities). The findings indicate that both types of users have similar perceptions regarding the usefulness of financial statements, with the income statement and balance sheet rated as the most useful components. Furthermore, both types of users, especially private users, perceive financial statements as the most important information source for decision making. Public users have a greater interest in supplementary information than private users. The findings of this study contribute to the debate around differential reporting for private companies and have policy implications with regard to the user‐needs approach to accounting standard setting.

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“…The purpose of this first open coding pass through the data was to establish whether the interview data could be divided into more than one study based on divergent topic areas discussed during the interviews. This proved to be the case, and the data relating to the requirements of the users of financial reports are reported elsewhere (Handley et al ., 2018).…”

Section: Methodsmentioning

confidence: 99%

Understanding participation in accounting standard‐setting: the case of AASB ED 192 Revised Differential Reporting Framework

Handley

Evans

Wright

2019

Accounting & Finance

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This paper explores the motives of participants in the standard‐setting process, based on the premise that standard‐setters strive for standards that are useful for decision‐making by a wide range of financial statement users. Our setting is the development of a contentious but contained Australian accounting standard, Reduced Disclosure Requirements. A consultative process initiated by the Australian Accounting Standards Board to create a specific Australian accounting standard for differential reporting provided an opportunity for interested parties to participate. We analyse the motives of participants through semi‐structured interviews with members of the Australian Accounting Standards Board and comment letter writers who responded to the relevant exposure draft. Our findings identify participants’ economic and political motivations and question the ability of the current standard‐setting process to extract decision‐making requirements from a wide range of users of financial statements and to reflect these in financial reporting standards. We find that the perspectives gathered are homogenised and that the process privileges the voices of powerful elites.

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SME Reporting in Australia: Where to Now for Decision‐usefulness?

Cited by 8 publications

References 35 publications

Malaysia Private Entity Reporting Standard (MPERS) adoption for SMEs: Insights from Accounting Practitioners in Malaysia

Malaysia Private Entity Reporting Standard (MPERS) adoption for SMEs: Insights from Accounting Practitioners in Malaysia

Are Financial Reports Useful? The Views of New Zealand Public Versus Private Users

Understanding participation in accounting standard‐setting: the case of AASB ED 192 Revised Differential Reporting Framework

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