Financial Accounting Practices Research Articles

Effect of the Management Accounting on the Financial Performance of Small and Medium Enterprises in Rwanda: A Case of Small and Medium Entreprises in Gasabo District

Management accounting provides an excellent opportunity for companies to compete in the market by offering superior products and services at reasonable prices to customers. The general objective of this study was to study the effects of management accounting practices on the Financial Performance of Small and Medium Enterprises in Gasabo district, Rwanda. This study adopted a correlation study design. The target population for this study was the 171 small and medium enterprises in Gasabo district Stratified random sampling method was applied to come up with the sample size, since the population in different Small and Medium Enterprises was considered heterogeneous, implying that a simple random sample is unrepresentative. The study therefore involved 171 Small and Medium Enterprises in Gasabo district. The study collected primary data from the respondents. The data collected was both quantitative and qualitative. Qualitative data is descriptive and non-numerical, while quantitative data is numerical. The study found that Budgeting was the most widely used management accounting practices, including budgeting for planning, activity-based budgeting, flexible analysis, zero-based budgeting, and budgeting for controlling costs. costing systems were the second most widely used management accounting practice, including separation of variable, incremental, and fixed costs; plant-wide overhead rate; activity-based costing; target costing; and cost of quality. Information for decision making was also used by respondents, including stock control models, customer satisfaction analysis reports, product profitability analysis reports, risk analysis reports, and investment analysis reports. Strategic analysis was also highly used by respondents. The study further concludes that the most important elements of management accounting practices amongst the Small and Medium Enterprises in Gasabo district are; the management accounting function identifies key factors that influence Financial Performance and management accounting practices have increased return on equity (ROE), which is a measure of how profitable a company is for its shareholders. This is because management accounting practices help companies to identify and improve risky areas, which can lead to increased profits. This study recommends the creation and enhancement of awareness among firms of the importance of Information for decision making practices as this is the most highly used management accounting practice amongst the Small and Medium Enterprises in Gasabo district. Keywords: Management Accounting Practices, Costing Systems, Budgeting, Information for Decision Making, Strategic Analysis, Financial Performance, Small And Medium Enterprises

The Impact of Technological Advances on Financial in the Accounting Sector: A Meta Analysis

This meta-analysis explores the profound impact of technological advances on financial accounting within the accounting sector. With the rapid evolution of technology, particularly in recent decades, the accounting landscape has undergone significant transformations. This study synthesizes existing literature to analyze and compare the effects of technological advancements on financial accounting practices across different contexts. Through an extensive review of scholarly articles, this meta-analysis identifies common themes, trends, and implications for practitioners and policymakers.

‘Money does not stink’ – Accounting and slavery

This article supplements the multidisciplinary effort sparked by the New York Times's 1619 Project to focus attention on institutions and practices that supported American slavery. Managerial and financial accounting practices support many types of endeavours. Accounting is usually done for managers, investors, and creditors. Accounting practices supported investment in, and management of slavery, a fundamentally immoral and destructive practice. Accounting served the interests of the enslavers, not the enslaved. Accounting practices helped investors in slave voyages and absentee plantation owners overcome agency problems, facilitating investment. Plantations used accounting to track enslaved people's productivity. Accounting terms and reports dehumanised enslaved men and women, classifying them as assets and as loan collateral. Accounting forms and statements treated slave ownership and the use of slave labour as routine. In these ways, accounting statements helped normalise and legitimise the practice of slavery and helped distance investors and lenders from its brutal reality.

Bibliometric Analysis of the Development of International Accounting Research: A Review of the Literature in the Last Two Decades

This research conducts a bibliometric analysis to examine the development of international accounting research over the past two decades. Utilizing a quantitative approach, we explore clusters, highly cited publications, and keyword occurrences within the literature. The analysis reveals six distinct clusters, each highlighting key themes such as challenges in the accounting profession, financial accounting practices, cultural influences, governance dynamics, and value relevance. Additionally, the study identifies highly cited publications that have significantly influenced the international accounting discourse, offering insights into pivotal works that have shaped the field. Keyword analysis further unveils prevalent and less explored themes, with terms like "Firm," "Market," and "Accountant" emerging prominently. The abstract concludes by discussing the implications for future research, emphasizing potential avenues for exploration and the need for a nuanced understanding of the multifaceted landscape of international accounting.

Menguak Nilai Kearifan Lokal di Balik Praktik Akuntansi Biaya oleh Para Petani: Studi Etnometodologi Islam

This research departs from problems related to the study of cost accounting in the agricultural context, which only reveals the reality of accounting limited to the material and ignores local cultural and spiritual values. This study aims to reveal the value of local wisdom behind agricultural accounting practices. This study uses an Islamic paradigm with an Islamic ethnomethodological approach. There are five data analysis stages: charity, knowledge, faith, revelation information, and courtesy. The results showed that there were agricultural cost accounting practices in the form of rental fees for agricultural land expansion services, planting rice seeds, costs for seeds, fertilizers, and pesticides, as well as increased costs due to rising fuel prices. Financial accounting practice is conditional on the value of patience (patience). The value of patience is reflected through the actions of farmers who persist in this profession, even though the cost of managing agricultural land is increasing due to rising fuel prices. In Gorontalo's Islamic culture, elders often instill the value of patience in the local community through the expression (lumadu) “mopo’o tanggalo duhelo” This expression means full of patience. The implication of this research is to present agricultural accounting practices based on local cultural values.

MSME Financial Accounting In West Java: Sustainability And Impact Factors

This study examines the relationship between financial accounting practices, including knowledge management, financial capability, technology adoption, financial performance, and the social impact of Micro, Small, and Medium Enterprises (MSMEs) in West Java, Indonesia. Quantitative research was adopted, and data were collected using structured survey questionnaires from 343 samples of MSME owners or financial managers in the regions. Data was analyzed using PLS-SEM with SmartPLS 4 software. The results confirm that financial accounting practices significantly affect MSMEs' financial performance and social impact. Knowledge management, financial capability, and technology adoption positively influenced financial performance and social impact. The study found that knowledge management is a significant factor in adopting technology. This study highlights the significant social impact of MSMEs on local communities and emphasizes the importance of sustainable financial accounting practices.

Pendampingan Pembukuan Dan Pencatatan Keuangan Bagi Pelaku Usaha Mikro Kecil Di Desa Suliliran Baru

Micro, Small, Medium Entreprises (MSMEs) have an important role to increase the economic growth, but MSMEs face problems in financial accounting amd records. Lack of understanding of financial accounting practices and not accurate in financial records is an obstacle for MSMEs to optimize their performance and business growth. The purpose of community services was to provide a simple financial accounting and recording assistance for MSMEs in Suliliran Baru village. Community services activities include: identifying problem in MMSEs, cash management, and preparing financial report. The method used consist ofdelivering material about financial accounting, training, and assistance for recording daily transactions. The results community service was to increase MSMEs owners in managing financial accounting and to be organize the financial records. The skills acquired can help MSMEs in making better business decisions and more effective financial management.
 
 Keywords: Business, Accounting, Financial Records, Transaction, MSMEs.

How big data features drive financial accounting and firm sustainability in the energy industry

PurposeThis study aims to scrutinize the relationship between the perception of big data (BD) features and the primary outcomes of financial accounting. Likewise, it explores whether financial accounting practices moderate the relationship between BD features and firm sustainability.Design/methodology/approachThe study used a questionnaire survey based on the Likert scale for two distinct groups of participants: academic scholars and industry practitioners operating in the BD era within the energy sector.FindingsThe results reveal significant positive associations between BD features and firm performance, reporting quality, earnings determinants, fair value measurements, risk management, firm value, the efficiency of the decision-making process, narrative disclosure and firm sustainability. Besides, the path analysis indicates an indirect impact of BD on firm sustainability via financial accounting practices. The results suggest that energy firms should consider incorporating BD analysis into their financial accounting processes to improve their sustainability performance and create long-term value for their stakeholders.Practical implicationsThe findings are particularly interesting to academics in accounting and business to improve the accounting curriculums to fit the technological revolution, especially in the field of BD analytics. Practitioners within energy industries must also refine their skills and knowledge to meet the challenges of BD in the foreseeable future. The results provide important implications for policy setters to revise current financial accounting standards to cope with technological innovation.Originality/valueThe study makes a valuable contribution by critically examining the impact of BD on various financial accounting practices neglected in prior research. It highlights the transformative power of BD in the domain of financial accounting and provides insights into its potential implications for energy firms.

Research on the reform of thinking mapping in university financial accounting practice

As a simple and effective thinking tool most common in modern education, mind mapping can be used to visually present the relationship between themes at all levels in a way that combines pictures and images. It can fully mobilize students' ability of thinking expression and imagination and innovation. Therefore, modern college education reform will integrate the use of this technical means. According to the accumulated experience of financial accounting practical thinking guidance education in colleges and universities in recent years, although teachers and students have realized the practical significance of mind mapping teaching, they have not given full play to its positive role in classroom teaching and have not guided students to master financial accounting knowledge by scientific use of mind mapping. Therefore, on the basis of understanding the current situation of financial accounting practice teaching in colleges and universities and the advantages of mind-mapping application, this paper mainly discusses the effective measures for the reform of financial accounting practice mind-mapping education in colleges and universities in the new era, and then from the perspective of practical education, judges and analyzes the reform value of mind-mapping teaching, in order to provide reference for cultivating outstanding financial accounting talents.

The Effect of Intellectual Capital, Industry Experience on the Application of Financial Accounting Standards in the Tourism Industry in Ambon City

This research study investigates the effect of intellectual capital and industry experience on applying financial accounting standards in the tourism industry. This research focuses specifically on the Ambon City context, aiming to provide insight into the factors that shape financial accounting practices in the local tourism sector. A quantitative approach involved collecting data from 150 entrepreneurs in Ambon City and analyzing the data with the help of SPSS version 25 software. The quantitative phase involved distributing survey questionnaires to tourism industry stakeholders. The research findings indicate a positive correlation between intellectual capital, industry experience, and practical application of financial accounting standards. Further regression analysis confirms the significant impact of intellectual capital and industry experience on compliance with financial accounting standards. This research highlights the importance of collaboration, knowledge sharing, and continuous professional development in promoting effective financial accounting practices. These findings have important implications for policymakers, industry practitioners, and researchers, who emphasize the need to invest in developing intellectual capital, fostering industry experience, and promoting collaboration within the tourism industry. Ultimately, this research contributes to an understanding of the dynamics between intellectual capital, industry experience, and application of financial accounting standards.

Sadaqah Financial Management and Accounting Practices in a Community

The present work delves into the financial management practice and accounting of sadaqah a association. It relied on an Islamic ethnomethodological approach. The research informants are the administrators and members of the association. The study found that the financial planning, collection, distribution and financial reporting of sadaqah was carried out simultaneously at night every 15th of the month of AD in different locations with a balance policy of less than two hundred and fifty thousand rupiah. Sadaqah collection is carried out in a closed booth and its distribution involves a minimum of two witnesses. study offers the need for the concept of social organizational financial accountability based on Islamic values. The research results also provide input for social organizations in the transparency of financial reporting.

Praktik akuntansi lingkungan dan biaya modal pada perusahaan di Indonesia

Observe the development of social responsibility, especially in the field of environment, and the performance of corporate governance in Indonesia are important factors in the company's operations. A number of companies do not participate in this disclosure activity, which will result in new costs that will be borne by the company. The high and low cost of capital owned by a company will show how much risk the company will accept in order to obtain funding for the company's sustainability. This research was conducted to produce an analysis of the effect of the level of environmental accounting practices on the cost of equity capital or the cost of debt capital and the effect of corporate governance performance on the cost of equity capital or the cost of debt capital. This study uses data on financial statements and sustainability reports of companies listed on the Indonesia Stock Exchange from 2016 to 2020. The test results show that financial environmental accounting practices and corporate governance performance consist of block ownership, board size, gender diversity, and board tenure. has a significant effect on the cost of equity capital. on the cost of debt capital, only the board size variable has a significant effect. This research encourages companies to be able to participate in the disclosure of environmental performance and corporate governance.

The Effect of Financial Accounting Practices and Management Accounting Practices on MSME’s Economic sustainability

This study aims to find empirical evidence regarding the level of adoption of financial accounting practices, assessment of accounting practices to MSMEs, and to see the correlation between financial accounting practices and management accounting practices of MSMEs in Palembang. Total of 1,103 MSMEs registered at Cooperatives and Micro, Small and Medium Enterprises Office is the research population. The sampling technique used the Taro Yamane formula to determine the size of the sample. After obtaining the number of samples, the random sampling method was used to select the MSMEs that were used as research samples. The precision of the sample used in this study was 0.2 and the research sample obtained was 50 samples. The data analysis method used was descriptive statistics and simple and multiple linear regression with a significance level of 0.05. The result is that there is a significant positive effect between financial accounting practices and management accounting on economic sustainability with a probability of 0.006 < 0.005. The most widely adopted financial accounting practice is the recording of sales and purchase transactions, while the most widely used management accounting practice is in operational budget planning.

Accounting and the U.S. Constitution: The Evolution of Federal Financial Accounting and Reporting Practices

ABSTRACT This study surveys and provides insights into the arc of federal government financial reporting developments, including the reporting mandate contained in the Constitution of the United States. Federal financial reporting has recently surpassed several significant milestones. The U.S. Government Accountability Office and Office of Management and Budget celebrated the 100th anniversary of their founding in 2021. Meanwhile, the Chief Financial Officers Act of 1990 and the Federal Accounting Standards Advisory Board have reached the 30-year mark. Progress during the last 20 years has focused on extending the requirements of the Chief Financial Officers Act, improving federal financial reporting standards, and increasing transparency through easily accessible open data.

Adoption of the AAOIFI International Code of Ethics for Indonesian Islamic Accountants

Accounting scandals against standards still occur in Indonesia. The Indonesian Islamic accounting code of ethics needs to be formulated in line with the development of Islamic accounting practices in Indonesia. The preparation of the Islamic accounting code of ethics needs to adopt the AAOIFI International Islamic accounting organization code of ethics. This study aims to describe the recommendations of scholars regarding the adoption of the AAOIFI code of ethics for Indonesian Islamic accountants. This research uses a qualitative type prioritizing interview techniques in collecting data. The study used the AAOIFI code of ethics through interviews with ulama (scholar) from the Indonesian Ulema Council (MUI). The results of this study are the adoption of the AAOIFI code of ethics provides guidelines for the preparation of a code of ethics for Indonesian Islamic accountants. The preparation of the code of ethics for Islamic accountants applies Islamic law in order to provide solutions to contemporary modern problems. The adoption of the AAOIFI International Code of Ethics takes into account the Indonesian urf am so that it is in accordance with existing financial accounting practices.

Financial Accounting as a Tool to Enhance Non-Government Organisations’ Performance: A Case Study of a Large NGO in Durban, South Africa

Numerous non-governmental organisations (NGOs) in South Africa and elsewhere do not have standardised financial accounting practices to follow in preparing their financial statements and it is not clear whether the International Financial Reporting Standards (IFRS) for Small and Medium-sized Entities (SMEs) can be used to enhance NGOs performance (Kaya et al., 2015). This article explored the applicability of financial accounting practices as a relevant tool to enhance NGO performance with particular reference to a large NGO in Durban, South Africa. A qualitative approach was employed and data was collected through the use of semi-structured interviews and conventional thematic and document analysis. Evidence from this study showed that despite adopting accounting and financial policy and procedures, the selected NGO finds it difficult to maximise its financial performance due to failure to fully comply with IFRS for SMEs in South Africa. This article provides necessary recommendations applicable to other similar NGOs globally.

PENINGKATAN TATA KELOLA PASAR SRI BANTAS DESA CEPAKA

Sri Bantas Traditional Market is one of the traditional markets located on Jl. Raya Munggu Br. Batanduren, Cepaka Village, Kediri District, Tabanan Regency. The objective in implementing this service is to provide assistance in the governance of the Sri Bantar Village market in Cepaka. The problems identified include: some traders in the Sri Bantas market have not implemented financial accounting practices, the lack of infrastructure arrangement in the Sri Bantas market, and the lack of a promotional strategy for traditional markets in the Sri Bantas market. The methods used in this assistance were interviews, observation, and data analysis. The work programs carried out in the Sri Bantas market were: 1) providing information about simple bookkeeping to market traders, 2) procuring hand washing stations, 3) procuring market block names , 4) data collection of traders, 5) making banners, and 6) making online pamphlets. The result of this activity is that some traders know the importance of making financial reports and how to make simple financial reports, up to date trader data has been inputted into the market system, the market is better known by the wider community.

Etika Dalam Praktik Akuntansi Keuangan

ABSTRACT
 
 HERMANTO. Ethics in Financial Accounting Practices.
 This study aims to examine the theoretical study of ethics in financial accounting practice. The data used in this study is qualitative data about ethical violations in financial accounting practices that occurred at PT Tiga Pilar Sejahtera Food Tbk. From this data, a theoretical study was carried out with qualitative research methods for the theory applied or not by the entity. The results of this study indicate that PT Tiga Pilar Sejahtera Food Tbk committed ethical violations in the practice of financial accounting in the presentation of its financial statements.
 
 Keywords: Ethics, financial statements, financial accounting.

The Relationship between environmental Financial accounting practices and Financial performance of industrial listed companies in Palestine Stock Exchange

The research aimed to investigate the applicability of environmental financial accounting practices in the industrial listed companies in Palestine Exchange and to examine the relationship between the disclosure level of environmental financial accounting practices on the company’s financial performance. The research adopted the descriptive-analytical approach, and the analysis method involved a content analysis of the annual financial reports data which were collected from Industrial listed firms on the Palestine Stock Exchange for the period from 2015 to 2019, including the firms disclosed and not disclose EFAP. Ordinary least square (OLS), fixed effect model (FEM), and random effect model (REM) were employed for processing the data. The results reveal that there is a relationship between the EFAP and financial performance. In addition, there is a difference in financial performance between the group of firms disclosed and not disclosed EFAP. Based on the findings, some recommendations are given for motivating EFAP in the listed firms for improving financial performance.

Financial accounting for deferred taxes: a systematic review of empirical evidence

Deferred taxes—resulting from differences between financial and tax accounts—have been a long-standing, contentious issue in financial accounting regulation, practice, and research. Debates on concepts and standards have been accompanied by doubts around whether and the extent to which deferred taxes provide relevant information for financial statement users and are employed by firms to manage their earnings. This paper systematically reviews the body of empirical evidence that has emerged over the last three decades on deferred taxes in the fields of value relevance and earnings management. A bibliographic analysis and a narrative synthesis are presented within a thematic categorization framework. Key results indicate that existing research focuses on the US setting. There is substantial evidence for the value relevance of various deferred tax items but limited evidence that firms use deferred taxes to manage their earnings. The findings suggest implications for both future research and the regulatory debate.