SMMEs and Financial Reporting: Information Technology as Tool to Enhance Performance and Economic Progression in Durban Municipality, KwaZulu-Natal | Chapter 9 | Economics and Entrepreneurship: The Proceedings of the 10th International Conference on Business and Management Dynamics (ICBMD), Edition 1

 Background: SMMEs drive South Africa's economic growth, employment generation, and poverty reduction. During the 1990s, South Africa passed the National Small Business Act and established SEDA to encourage SMMEs' sustainability and ease the regulatory burden. The National Development Plan targets SMMEs to create 90% of new South African jobs by 2030. SMMEs are vital to the economy but fail to sustain themselves. 60–80% of SMMEs fail within the first three years. Lack of strategic resource usage, managerial skills, financial report creation, and regulatory awareness and compliance contribute to the high failure rate.

Research Method: Quantitative methodology was deployed in the collection, analysis and presentation of data collected from 248 SMMEs, forming the sample size. Derived from the population of 700 SMMEs within the Durban Municipality, through non-purposive convenience sampling, according to the willingness and availability to participate in the study. Data was collected via a Likert questionnaire and subsequently analysed using SPSS 29.0.

Findings: Findings, through Spearman’s correlation values; crosstabulation and descriptive data collected and analysed indicate that SMMEs’ struggle with failure to produce regulatory-compliant financial reporting and their inability to strategically use information technology contributes to their challenge to sustain themselves. Furthermore, compliance cost is also a difficulty SMMEs face.

 

Conclusion: Information technology may aid SMMEs in preparing regulatory-compliant financial reports, improving their economic growth and sustainability. Given the challenges SMMEs face, the government should empower them to use information technology strategically to minimise compliance, cost, and risks in producing accurate financial reports, maximising sustainability and economic growth.

 

Author (s) Details

Sinenhlanhla T.N. Khumalo
Durban University of Technology, South Africa.

 

L.M. Lekhanya
Durban University of Technology, South Africa.

Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-49238-53-4/CH9

Management of Agricultural Companies in Portugal: How the Use of Fair Value can Promote Their Improvement| Chapter 6 | Business, Management and Economics: Research Progress Vol. 10

This article explores the use of fair value as a basis for measuring biological assets in the agricultural sector, focusing on the Portuguese context. It highlights the critical role of timely and accurate information in the decision-making processes of entities involved in agricultural activities. The adoption of international standards such as IAS 41 and IPSAS 27 has introduced fair value measurement, providing an alternative to historical cost. While fair value is relevant and reflects current market conditions, challenges remain such as market availability, valuation subjectivity and volatility. This study examines the implications of fair value for public and private entities, detailing the regulatory framework, methodological approaches and practical applications. It also discusses the advantages, disadvantages and disclosure requirements associated with this accounting approach, highlighting its impact on transparency, comparability and reliability in financial reporting.

 

Author (s) Details

Maria da Conceição da Costa Marques
Department of Business Sciences, ISCAC Coimbra Business School, Portugal.

 

Please see the book here:- https://doi.org/10.9734/bpi/bmerp/v10/3564

International Accounting Standards Board Conceptual Framework: A Brief Review | Chapter 2 | Modern Perspectives in Economics, Business and Management Vol. 7

 The research focused on the International Accounting Standard Board Conceptual Framework, which lays out a comprehensive set of ideas for quality financial reporting, standard setting, and professional guidance in developing reliable reporting strategies so that others can try to understand and decipher the principles. The study used a conceptual review technique, focusing on discourses within the realm of narrative proofs from the Global Accounting Standards Board, professional accounting groups, and academic research. The status and purpose of the IASB conceptual framework, which includes the objective of financial reporting, qualitative characteristics of useful financial information, financial statement and the reporting entity, financial statement elements, recognition and de-recognition, and concepts of capital and capital maintenance, were also discussed in the article. As a result, the study determined that while the framework is not a standard, its design is intended to aid the Board in formulating principles and preparers in producing consistent financial reporting methodologies.

Author (S) Details

Akinola, Akinwumi Olusegun
Department of Accounting, Afe Babalola University, Ado Ekiti, Nigeria.


Efuntade, Alani Olusegun
Department of Accounting, Afe Babalola University, Ado Ekiti, Nigeria.


View Book :- https://stm.bookpi.org/MPEBM-V7/article/view/3618