Investigating the Effects of Financial Accounting Reports on Managerial Decision Making in Small and Medium-sized Enterprises

Gardi, Bayar; Hamza, Pshdar Abdalla; Sabir, Bawan Yassin; Aziz, Hassan Mahmood; Sorguli, Sarhang; Abdullah, Nagoor Meera; Al-Kake, Farhad

doi:10.2139/ssrn.3838226

Cited by 25 publications

(23 citation statements)

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“…Surveillance, projecting, and monitoring performance is a vital section of managerial accounting. It guarantees that the accurate results match the budgets and projections described at the beginning (Gardi, Abdalla Hamza, Sabir, Mahmood Aziz, Sorguli, Abdullah & Al-Kake, 2021). Hertati, Safkaur and Simanjuntak (2020) noted that in the current years, an accounting information system had been utilized in many companies worldwide.…”

Section: Stratford Peer Reviewed Journals and Book Publishing Journal...mentioning

confidence: 91%

Influence of Accounting Information System on Decision Making Process in Audit Firms in USA

2022

JFA

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An accounting information system assists managers in making critical decisions by enhancing the firm's operational performance and long-term investment methods. Business uses accounting information system to collect, store, manage, process, retrieve and report data so it can be used by accountants, consultants, business analysts, managers, chief financial officers, auditors, regulators and tax agencies, among others. Hence, the study sought to examine the influence of accounting information systems on decision-making in audit firms in the USA. The study adopted the descriptive research design. The study included employees from Grant Thornton LLP. The collection of data was collected through stratified random sampling. The study used questionnaires to collect the data. The study used descriptive and inferential statistics to collect the data. The inferential statistics helped the study to examine the relationship between variables. The study findings showed that the accounting information system is positively and significantly related to decision-making (β=.901, p=0.009). It is concluded that a sound accounting information system needs to be simple and attain cost benefits balance, timeliness, accuracy, quality and conciseness. An information system is a formal process for collecting data, processing the data into information and distributing that information to users. The purpose of an accounting information system is to collect, store, and process financial and accounting data and produce informational reports that managers or other interested parties can use to make business decisions. The study recommended that audit firms consider and put proper measures to ensure that the accounting information system effectively influences decision-making. The firm should employ more well-informed workers about bookkeeping and establish a systematic strategy of executing the accounting systems to eliminate any difficulty. It is also recommended that accountants, consultants, business analysts, managers, chief financial officers, auditors, regulators and tax agencies rely on accounting information systems when making decisions.

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Section: Stratford Peer Reviewed Journals and Book Publishing Journal...mentioning

confidence: 91%

Influence of Accounting Information System on Decision Making Process in Audit Firms in USA

2022

JFA

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“…(Alexander & Fasiello, 2020) indicates that historical cost has continued to be used as a basis for measurement and recording due to its dependence on facts that have already occurred and are supported by documents and are not subject to differences in personal judgment and judgment, and are easy to verify, and are measured by the amount paid for them in cash or its equivalent at the time their occurrence. (Freeman, 2020) confirms (Gardi, 2021) despite those justifications on which the principle of historical cost is based and its consistency with the generally accepted accounting assumptions and principles, but it raised many criticisms 2 about the limited usefulness of using the resulting financial statements and reports, especially "Criticism about the inadequacy of accounting information for decision-making, and this means that in cases of inflation, historical values become unrealistic and therefore the financial statements do not represent the true financial position of economic enterprises, as well as" the difficulty of comparing financial positions during several successive accounting periods, especially with the change in economic conditions that it is characterized by a constantly changing and volatile dynamic movement and a change in the purchasing power of the monetary unit. (Hajiyev, 2021) believes that after the increasing criticism of data and financial information users of the historical cost principle and their low confidence in the financial information prepared on its basis, the trend towards fair value accounting began, and the replacement of traditional historical cost accounting measurement with fair value measurement was considered an important issue in light of Prioritize the characteristics that must be available in the information, especially reliability, suitability, caution, and caution.…”

Section: -Introductionmentioning

confidence: 91%

The effect of using fair value accounting in activating the Iraqi stock market (A field study on companies registered in the Iraqi market for financial markets)

Rahma¹,

Shibli²,

Salih³

2022

Proceedings of 2nd International Multi-Disciplinary Conference Theme: Integrated Sciences and Technologies, IMDC-IST 2021, 7-9

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The study aims to know the reflection of the application of fair value accounting on revitalizing the market and increasing its efficiency through the opinions of preparers, analysts, and users of financial information for companies listed on the Iraqi Stock Exchange. The research provided a framework of knowledge for the concept of fair value and its importance in the stock market based on the descriptive analytical approach by preparing a questionnaire prepared for this matter. Furthermore, A random sample was selected that includes a group of specialists in the aspects of financial analysis and investment, and the conclusion that was reached is the existence of a relationship of using fair value accounting by companies registered in the Iraqi Stock Exchange and increasing the market capitalization of the market.

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“…Non-compliance with accounting standards is one form of failure to understand them. The use of indicators for this variable is based on research conducted by Gardi (2021).…”

Section: Sak Emkm Compliance and Financial Performancementioning

confidence: 99%

Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM) in Indonesia: Factors, and Implication

2022

QAS

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The purpose of this study was to examine the compliance of MSME actors with micro, small and medium financial accounting standards (SAK EMKM) and their determinants and implications for financial performance. This study uses additional analysis by testing the sub-sample of MSMEs with large and small assets. The object of this research in Indonesian MSMEs using primary data distributed to respondents is 8,856.097. Hypothesis testing using regression analysis method. The results prove that MSMEs in Indonesia have not met SAK EMKM. This shows that MSMEs have not used the applicable standards for the management of MSMEs in Indonesia, especially in the preparation of financial reports. Other evidence that MSMEs do not understand or are not ready to implement SAK EMKM; This evidence shows that MSME actors do not understand the importance of issuing SAK EMKM. Other results, costs and benefits, quality of information, and socialization have a positive effect on the level of compliance with SAK EMKM. The test results of the sub-sample with large assets that affect SAK EMKM compliance are the quality of information and socialization, while the sub-sample of small assets proves the costs and benefits, and socialization. The difference between the test results and the sub-samples is due to the different samples. Limitations/implications of this study, namely focusing on MSMEs in Indonesia by not conducting direct interviews with samples due to the COVID-19 pandemic.

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Investigating the Effects of Financial Accounting Reports on Managerial Decision Making in Small and Medium-sized Enterprises

Cited by 25 publications

References 0 publications

Influence of Accounting Information System on Decision Making Process in Audit Firms in USA

Influence of Accounting Information System on Decision Making Process in Audit Firms in USA

The effect of using fair value accounting in activating the Iraqi stock market (A field study on companies registered in the Iraqi market for financial markets)

Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM) in Indonesia: Factors, and Implication

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