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Small and Medium Enterprises (SMEs) often lack the necessary financial skills to safeguard business success. It is therefore expected that they would benefit from the advisory services offered by external accountants. Research, however, indicates a reluctance amongst Small Business Owners (SBOs) to source advice from accountants. It has been suggested that factors relating to service quality may contribute to this reluctance. This paper aims to report on how the levels of service quality offered by Small Accounting Practitioners (SAPs) impact the frequency with which SMEs source different services. Data were collected from 422 South African SBOs using self-administered questionnaires. Hypotheses were tested through Structural Equation Modelling (SEM). An exploratory factor analysis was performed on the adapted Service Quality Model (SERVQUAL) scale, and two dimensions for measuring service quality in this context were found: technical and functional aspects. Results from the structural equation modelling indicate that SAPs' level of service quality has no significant impact on the frequency with which SMEs source traditional accounting services. However, a significant positive relationship was found between both service quality dimensions identified and the rate at which SMEs source advisory services. The findings suggest that SAPs could establish a relationship of trust with their existing clients by providing high-quality services. Quality service, in turn, would result in clients sourcing advisory services more frequently, benefiting both the SME and the accounting practitioner. [ABSTRACT FROM AUTHOR]

Background: Despite calls by scholars for small business owners (SBOs) to seek external consultation from accountants, empirical work demonstrating the relationship between the frequency of various types of services sourced and the perceived benefits obtained remains neglected. Aim: The purpose of this article was to determine the benefits that SBOs obtain from the frequency by which they source different types of accounting services. Setting: Survey data were collected from a sample of 422 South African SBOs. Small business owners are defined as those who own a distinct business entity with no more than 200 employees. Methods: The study followed a quantitative research approach. Structural equation modelling was used to test the hypotheses. Results: Overall, the study found that the frequency by which different types of accounting services are sourced influences SBOs’ perceptions of the levels of management versus compliance benefits obtained. Results show that SBOs that frequently source the service of submitting income tax returns perceive the relationship with their accountant to provide significant compliance benefits. Small and medium enterprises (SMEs) that source tax planning services and routine accounting services from their accounting practitioners experience significant compliance and management benefits. Results confirm the notion that no significant benefit are gained from year-end accounting services, such as the preparation and audit of annual financial statements. Conclusions: The study advises SBOs not to limit their perceptions regarding the role of an accountant to that of a compliance officer. The article suggests that by sourcing advisory services more frequently, SMEs could overcome the difficulties associated with an internal lack of financial skills.

The article discusses how a performance measurement system (PMS) was used to improve the performance of managers at a medium-sized beverage manufacturer. The authors' approach involved a longitudinal case study in which they played a role in the development of the PMS for the firm's transportation department. Doing so required drawing upon the expertise and data of several functional areas. In addition to providing documentation for an actual PMS aimed at controlling transportation costs, their work helps explain how experimentation with prototypes can aid in developing a PMS.

This paper provides evidence about the unintended consequences arising when small companies are exempted from costly regulations—these firms have incentives to stay small. Between 2003 and 2008, the SEC postponed compliance with Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) for “non-accelerated filers” (firms with public float less than $75 million). We hypothesize and find that some of these firms had an incentive to remain below this bright line threshold. Moreover, we document that these firms remained small by undertaking less investment, making more cash payouts to shareholders, reducing the number of shares held by non-affiliates, making more bad news disclosures, and reporting lower earnings than control firms. Finally, there is no evidence that firms remaining small are doing so to maintain insiders' private control benefits. These findings have implications beyond SOX because numerous federal and state regulations exempt small firms via bright line size thresholds. [ABSTRACT FROM AUTHOR]

This inquiry addresses the prevalence of computerized accounting information technology in the U.S. small business environment. Academic and practitioner literature gives the impression that small business has widely adopted computerized accounting systems. Our study looked at a broad range of small businesses and found that a large majority are still using accounting practices that do not constitute true integrated computerized accounting systems. Further, of those which are using integrated software, over 90% are using industry-specific software rather than the general-purpose small-business accounting packages which dominate the literature. These results suggest that: (1) penetration of integrated accounting software is not as prevalent in small business as the literature might imply, (2) there is opportunity for research into why business owners do not utilize integrated software, (3) there may be opportunity to help entrepreneurs improve their efficiency and effectiveness, and (4) entrepreneurs using integrating software find benefits beyond simple accounting functions. [ABSTRACT FROM AUTHOR]

While management accounting (MA) implies potential benefits for large established companies, its usefulness for young and small companies is less clear. This review analyzes and partially resolves the paradox and provides a structured overview of present knowledge. A systematic literature search yielded 67 empirical papers in 25 journals. Drawing on the results of a two‐step coding process, this study proposes 20 novel second‐level constructs expressing the types of MA, their antecedents and their consequences in young and small companies. The main results show that, in discussing MA, the literature refers mainly to business planning, accounting‐based management control activities and financial accounting. Most studies find MA to be helpful for young and small companies because it provides tools to overcome difficulties arising from company growth and reduces information asymmetry with external partners. Overall, however, the empirical literature on this topic is highly concentrated, offers theoretical construct definitions of poor quality, and lacks a clear statement of what MA really does in young and small companies. Therefore, future research and theory development are warranted. [ABSTRACT FROM AUTHOR]

In recent years, after various scandals, the role of auditors has been called into question, even casting doubt on whether their reports reliably reflect the true financial situation of the auditee, especially when this situation is not good. Normative changes in the way auditors have to rate certain questions provide a good opportunity to study this problem. These changes have acquired great relevance among the factors involved in studying audit quality. Thus, the present study analyzed the effect of the normative change that took place in Spain in December 2010, related to opinions modified for going-concern uncertainties. Until that date, the auditor's uncertainty about the company's going-concern status led to a qualified opinion. However, under the new regulation, it became an opinion that included an explanatory paragraph stating the reasons for concern, which was considered less serious. In all, 152 small- and medium-sized enterprises that had begun bankruptcy proceedings were studied. Expert systems were used for their analysis, based on classification trees assembled through boosting and bagging. In addition, the logistic regression was used as baseline to compare previous methods. The main result obtained was that a change in the norm that catalogs the going-concern issue as less serious made auditors more likely to report this situation, thus questioning the audit quality. [ABSTRACT FROM AUTHOR]

The Small Business, Enterprise and Employment Act 2015 ('Small Business Act') made provision for regulations that would make ineffective a ban on assignment of receivables in contracts (with the exception of some contracts for financial products). The purpose of these provisions was to enable small and medium-sized enterprises (SMEs) to access invoice discounting finance, in circumstances where the current law allowed their larger customers routinely to block assignment of receivables, which is an essential feature of this form of finance. After some delay, draft Regulations were published in 2017, which would have had much wider effects, banning prohibitions on assignment in a wide range of commercial contracts governed by English or Northern Irish law (changes to Scots law are a matter for the Scottish Assembly) regardless of the size of the parties involved, the nature and value of the contract or whether it actually had any connection with the United Kingdom market. This had the capacity to make it difficult for UK businesses to enter into and finance large commercial contracts, raise funds through securitisations and organise project finance and could have affected the attractiveness of English law in international financings. The Regulations were withdrawn and were substantially recast so that they only apply to business-to-business (B2B) contracts in which the supplier is an SME or micro-business and at least one of the parties has entered into the contract in the course of a UK business. A number of other exclusions also apply. The application of the Regulations is judged at the time when an assignment of receivables is entered into by a supplier. This revised version of the Regulations will come into effect from 31 December 2018 after receiving Parliamentary approval. The Regulations fulfil the purpose of the Small Business Act while avoiding the potentially damaging effects for larger and non-UK transactions. This article explains in more detail how the new Regulations will work and the approach to ascertaining whether they will apply to a contract for receivables which a supplier wishes to assign, notwithstanding that the contract contains a prohibition on assignment. [ABSTRACT FROM AUTHOR]

Our study, which is based on a survey carried out among German private firms, aims to ascertain which characteristics determine private firms’ need for providing internationally comparable accounting information and whether or not those firms that perceive such a need actually apply IFRS voluntarily. The relevance of equity from foreign investors and inclusion within an international group are positively associated with this perceived need, whereas international operating activities and a firm’s size are not. Regarding the voluntary adoption of IFRS, both the perceived need and also the interaction between size and need are significant. Our results show that smaller firms, despite perceiving a need for providing their stakeholders with internationally comparable accounting information, often do not apply IFRS. [ABSTRACT FROM AUTHOR]

In this paper, I report the results of a similar study of the effects of fees for specific nonaudit services on the pricing of audit services. I include all nonaudit services rendered by the incumbent audit firm, categorizing these services as tax, accounting-related MAS, and nonaccounting MAS. This decomposition of MAS allowed me to investigate whether the proximity of the service to accounting influences the existence and magnitude of any beneficial effects from joint supply. The motivation for considering these categories separately stems from the distinction in the independence literature between MAS that are related to accountants' traditional areas of expertise and experience and MAS that are more remote. Finally, to provide additional insight into the reasonableness of the benefits from the joint-supply scenario, I included nonaudit services supplied by public accounting firms other than the incumbent audit firm (nonincumbents). Presumably, there should be no joint-supply benefits between audit services supplied by the incumbent CPA firm and the nonaudit services supplied by nonincumbent firms, ceteris paribus. [ABSTRACT FROM AUTHOR]

The article discusses how small businesses should deal with Generally Accepted Accounting Practices (GAAP) and how they are affected by preparation costs. The article describes how the Financial Accounting Standards Board (FASB) views financial statement requirements and discusses whether small firms can fairly be held to the same standards as larger firms. The article names 'standards overload' as a side effect from FASB requirements, stating that they are mostly relevant for larger firms but that smaller firms feel the pressure as well. The article states that small firms sometimes must hire outside accountants to compile financial statements because the GAAP requirements are too complex.

This paper provides a tutorial in the use of artificial neural networks (ANNs) in accounting and finance in the form of a well-documented exploratory application of an ANN with automatic learning to the analysis and interpretation of the noisy data contained in the financial statements of a sample of small businesses. The application uses the learning algorithm of the Boltzmann machine (EM), which employs the technique of stochastic optimization called simulated annealing. Various experiments are run using balanced training sets and (unbalanced test sets. Since most assessment errors are boundary errors and the ratios of successful classifications for the test sets are clearly above chance for the balanced training/test sets, the BM with two- and three-class output separation appears to have practical value. As expected, the BM demonstrates better accuracy as the size of the training sample increases in a balanced fashion, and less accuracy as the test set is augmented in an unbalanced manner. [ABSTRACT FROM AUTHOR]

This article reviews a variety of arguments that have been proposed in favor of differential Generally Accepted Accounting Principles (GAAP) for small or privately held companies in light with the conceptual framework project of the U.S. Financial Accounting Standards Board (FASB). It is frequently asserted that differences among companies give rise to the need for differential GAAP. The primary differences that have received attention are differences in transactions and differences in settings or business environments. The first argument suggests that the needed information concerning a small company can always be generated by employing relatively simple accounting procedures, while complex rules should always be applied to the transactions of a large firm. The second argument supporting differential GAAP maintains that the settings or environments of large and small companies are so different that the information needs of financial statement users are dependent upon the type of company they are dealing with. Another argument frequently proposed in support of differential GAAP maintains that there are basic differences between the financial statement users of large and small companies and that these differences result in information needs that are not uniform. In summary, the FASB conceptual framework does support some of the arguments favoring differential GAAP. The primary theme of the conceptual framework is decision usefulness.

Several studies have shown that International Financial Reporting Standards (IFRS) adoption is associated with higher audit fees. We provide additional evidence on this issue by analyzing the Swiss context, which is particularly suitable for two reasons. First, it allows a better estimation of the impact of IFRS adoption on audit fees because the choice of accounting standards (IFRS, US generally accepted accounting principles [GAAPs] or Swiss GAAPs) is left to companies. Accordingly, comparisons can be made within the same institutional context. Second, it is also possible to measure the impact of IFRS renouncement on audit fees because Swiss companies following IFRS can switch back to Swiss GAAPs at any time. Based on a hand‐collected database including 1,651 firm‐year observations over 15 years, we show that, with the exception of very large companies, firms using IFRS pay higher audit fees. We also find that firms switching to IFRS incur additional audit fees in the year preceding the change. By contrast, the return to local GAAPs does not result in lower audit fees, which confirms the stickiness of audit fees reported by several prior studies. [ABSTRACT FROM AUTHOR]

We examine the association between voluntary financial disclosure and the amount of obtained trade credit in a sample of small private Belgian companies. We argue that voluntary disclosure can help small private companies in mitigating information asymmetries that arise between the company and their suppliers. Using a propensity score matching procedure to control for selection bias, we find that voluntary financial disclosure by small and private companies is positively related to the level of trade credit. This is in line with the traditional view that asymmetric or incomplete information restricts access to external funds. [ABSTRACT FROM PUBLISHER]

Accounting as a practice has existed since the earliest times of humanity. The first simple accounting records are found in the writings of Babylonian, Chaldeans, Assyrians and Sumerians in Mesopotamia. The time of theoretical accounting recognition is considered to be the year 1494, when Venetian mathematician Luca Pacioli published a book titled "Summary of arithmetic, geometry, proportions and proportionality". In addition to mathematical knowledge, Pacioli also wrote about the dual registration method and the accounting process. Despite Paciolli's writing, there is still much discussion regarding the issue of dual accounting origin. In reviewing the literature, it is noteworthy that accountancy history is scarcely addressed; there are only a small number of books and works that cover the topic. Therefore, the purpose of this paper is to take a historical look at accounting development from ancient periods to the present. This study, based on historians" records and archaeologists like Denise Schmandt-Besserat, has successfully described the origins and development of accounting from 3350 BC until today. [ABSTRACT FROM AUTHOR]

Urgency of the research. Euro integration processes in the Ukrainian economy put new demands on the organization of accounting in accordance with International accounting and reporting standards, which stipulates the use of a competent approach for the formation of qualification requirements for accounting officers. Target setting. Disclosure of the essence of the competence of accountants in the context of the study of the factors of its impact on effective accounting. Actual scientific researches and issues analysis. The problem of the formation and development of the accountant's profession is one of the key places among research in scientific circles, which has been devoted and continues to be given more attention by both domestic and foreign scientists, in particular O. Bakayev, I. Bilousova, M. Bilukha, P. Bezrukykh, F. Butinets, M. Weber, C. Golov, S. J. Gray, V. Zhuk, V. Ivashkevych, G. Kireytsev, A. Mikhalkevych, A. Petruk, S. Prylypko, J. Sokolov, L. Chyzhevskaya and other. Uninvestigated parts of general matters defining. Competency approach in the formation of professional skills and abilities of accounting staff is the basis of effective accounting service activities. The research objective: to determine the influence of factors of professional competence on the state of adaptation of the accounting service to international requirements. The statement of basic materials. Effective activity of accountants in the system of management of the enterprisetype market is determined by the level of professionalism of accountants, not only in the knowledge of legal acts and procedures of conducting accounts, but also in the ability to solve constructive tasks, to take effective decisions of production, financial and investment character, influence the development strategy Enterprises in a competitive environment and form information products for different groups of interested users. Conclusions. The competence of accounting officers on the basis of professional advantages creates the basis for a reliable information environment for the adoption of effective managerial decisions by management of enterprises in market conditions. [ABSTRACT FROM AUTHOR]

Small businesses are the backbone of the economy in many countries. In Europe, for example, small companies represent more than 90 per cent of all companies (e.g., Lukacs, ). Although these companies represent such an important portion of the economy, few studies have examined their voluntary disclosure decisions. Because small companies have certain unique characteristics compared with their larger counterparts, the general applicability of past voluntary disclosure studies to small companies is questionable. Drawing on agency and proprietary cost theory, this study investigates whether ownership, competition, and accountant factors influence the decision to disclose financially sensitive information on a voluntary basis. Our results (using an e-mail questionnaire to small private companies in Belgium, n = 1,068) indicate that nearly 40 per cent of the responding companies are not aware of their disclosure behavior. For companies that are aware of their disclosure behavior, the logistic regression analysis demonstrates that factors relating to the separation of ownership and control, namely the type of ownership and number of shareholders, are among the most important determinants in the voluntary disclosure decision of small private companies. Companies with at least one legal entity as an owner of a company are less likely to disclose, while companies with more shareholders are more likely to disclose. We also provide evidence that perceived competition and the default setting of the accounting software used have a significant influence on the voluntary disclosure behavior. [ABSTRACT FROM AUTHOR]

Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Zeszyty Teoretyczne Rachunkowości is the property of Stowarzyszenie Ksiegowych w Polsce Rada Naukowa and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

I present a summary and analysis of a series of papers from this special issue ofAccounting in Europethat examine the role and current status of International Financial Reporting Standard (IFRS) in the completion of National Accounting Rules applicable to large ‘non-listed in a regulated market’ non-financial undertakings trading for gain in 25 European countries following the recent implementation of the new European Accounting Directive 2013/34/EU. IFRS has had a varying degree of influence across European countries. Some refer and are closely aligned to IFRS or to IFRS for small and medium-sized entities, some while influenced by IFRS retain complete independence and some show limited influence mostly when accounts are for other purposes such as taxation, dividend distribution or creditor protection. I present a number of classification schemes and contrast these with Nobes [(2008). Accounting classification in the IFRS Era.Australian Accounting Review,18(3), 191–198] two group accounting classification of European accounting systems as strong equity/commercially driven versus weak equity/government driven/tax-dominated systems. [ABSTRACT FROM AUTHOR]

We investigate how Finland has applied Directive 2013/34/EU of the European Parliament and of the Council to the annual financial statements, consolidated financial statements and related reports of certain types of undertakings. In addition to the implementation process and general implications of the Finnish Accounting Act, we emphasize its implications and interplay with IFRS. We conclude that the national implementation of Directive 2013/34/EU successfully diminished the administrative burden experienced by small companies. [ABSTRACT FROM AUTHOR]

We examine the changes in Croatian accounting regulation, in the context of 2013/34/EU Directive implementation and analyse indirect effects of IFRS on national reporting regulation for non-listed companies. The main goal is to determine the level of conformity between Croatian accounting rules and IFRS as adopted by EU. Analysis shows that IFRS are used in the great extent as a source for provisions in Croatian Financial Reporting Standards (CFRS). There are only a few major differences between Croatian financial reporting standards and IFRS. However, there are a number of IFRS standards that are considered not to be relevant in the context of CFRS, as CFRS are intended to be used only by SMEs. Nevertheless, the management is permitted to use provisions and guidance from IFRS, if CFRS provisions are not applicable to a certain transaction or event. [ABSTRACT FROM AUTHOR]

Drawing on secondary data, we examine the transposition of the Accounting Directive 2013 into UK GAAP with a specific focus on references to IFRS. The process involved consultation and regulatory impact assessment on the options in the Accounting Directive and proposed changes to accounting standards for non-publicly accountable entities. This led to an IFRS-based approach from 2016 with three tiers: EU-adopted IFRS for group listed companies and other publicly accountable entities, an adaptation of IFRS for SMEs for non-publicly accountable entities, and a simplified version for micro-entities incorporating the requirements of the Accounting Directive. This outcome is not surprising since the UK was one of the founding members of the original International Accounting Standards Committee and a strong proponent of little GAAP. Indeed, the UK’s former Financial Reporting Standard for Smaller Entities provided a model for the IFRS for SMEs. In the past, there were few references to IFRS by the UK’s enforcement and interpretation bodies. Today, guidance is taken from IFRS Interpretations Committee. We contribute to the literature by describing the main processes involved in implementing the Accounting Directive and the move to an IFRS-based approach in UK GAAP. Our analysis should be of interest to researchers and policymakers alike. [ABSTRACT FROM AUTHOR]

Although Switzerland is not a member of the European Union, the EU directives have largely influenced the Swiss accounting regulation. IFRS also have been highly influential since many large companies used them long before they became mandatory for listed firms. Moreover, IFRS served as a benchmark for the development of Swiss GAAP. This article compares the current Swiss accounting regulation to the new EU accounting directive and to IFRS. Despite many similarities, the Swiss regulation retains major specificities, the most notable being the permission of hidden reserves. [ABSTRACT FROM AUTHOR]

We examine the extent to which International Financial Reporting Standards (IFRSs) are used as a reference point and as a basis for the development of accounting standards in the Republic of Ireland (ROI). In particular, the focus is on accounting standards applicable to entities other than those listed on a regulated EU market. The objective is to provide a deeper understanding of the direct and indirect effect of IFRS on accounting standards applicable predominantly to private companies limited by shares in ROI. We illustrate how the historical links between the UK and ROI continue to influence accounting standards applicable in ROI. The enactment of the Companies (Accounting) Bill 2016 into ROI law will maintain the traditional alignment of UK and ROI accounting regulation, whilst simultaneously bringing into force the remaining aspects of the EU Accounting Directive 2013/34/EU, not currently applicable in ROI. [ABSTRACT FROM AUTHOR]

We analyse the extent to which International Financial Reporting Standards (IFRS) have influenced the development of the national generally accepted accounting principles (GAAP) in the transposition of Directive 2013/34/EU in Malta including whether they are used as a reference point in the interpretation of the national GAAP. Malta mandated the use of IFRS by all companies for a significant number of years. This has resulted in IFRS influencing the development of the national GAAP; and enforcers and other key stakeholders viewing IFRS positively. [ABSTRACT FROM AUTHOR]

The main purpose of this paper is to provide an overview of International Financial Reporting Standards (IFRS) application in Estonia. After restoration of independence, development of the Accounting and Financial Reporting System in Estonia has been based on internationally accepted accounting principles where IFRS and EU Directives have had an important role. From 2003 to 2013, the system based on the Full IFRS and after that, the switch from the Full IFRS to the IFRS for Small and Medium-sized Entities (SMEs) took place. Estonian position on IFRSs is very positive. IFRSs were heavily used in the system of setting local guidelines and despite switching to the IFRS for SMEs as base for the local guidelines, they are still used as a very important reference point and source of interpretation for national accounting rules based on the EU Accounting Directive. [ABSTRACT FROM AUTHOR]

Implementing a managerial accounting system is a process leading to the introduction of change, which involves the creation of a vision of change and strategy, as well as the stimulation of innovation. This implementation is a genuine organisational revolution that includes the managerial system used. Any implementation process should take into account the scope of the change in mentality and culture that the people involved should undergo. The implementation should not be made by imposing hierarchically adopted decisions, but focus on the daily contribution of each and everyone. A new system which has not been properly internalised and accepted is doomed to disappear. The training effort should be oriented more towards the change of mentality than on the presentation of the techniques. Within this context, putting the decisions into practice becomes extremely important, especially when it comes to studying the impact on the organisation of the leaders' attempt to impose their vision. [ABSTRACT FROM AUTHOR]

Judo economics describes an entry strategy for small firms. Using a capacity limitation, they force dominant market incumbents to accommodate. We study the power of judo economics in differentmarket environments.We find experimental evidence supporting the theory in the original setting with a monopolistic, dominant market incumbent. When we introduce a cost advantage for small firms, profits go down. This can be explained by incumbents responding aggressively towards large entrants. For settings with multiple market incumbents, the results are reversed. There, a cost advantage strengthens small firms, and pricing below the incumbents' marginal cost provides the unique entry strategy. [ABSTRACT FROM AUTHOR]

A number of abstracts are presented for articles pertaining to the field of retailing. They include "Small Business Problems: Record Keeping for Small Stores," "Where We Stand and What's Ahead in Food Retailing," by Carl W. Dipman and "Formfit Helps Corset Retailers Find Way to Greater Profits."

The purpose of this study is to uncover additional determinants of the demand for voluntary audit in micro-companies by investigating the internal management factors that have not yet been explored in prior literature. The hypotheses are developed from the literature and interviews with owner-managers of such companies, bank lenders and the tax authority. The study is based on archival data relating to some 50,000 Finnish micro-companies over the three-year period following the introduction of audit exemption in 2008. Our results show that the drivers of voluntary audit are: (1) management needs to ensure security of supply from trade creditors, (2) the company is not in financial distress, (3) the company is growing, (4) management has a need for tax reporting credibility, and (5) ownership is dispersed. The results of this research will be of interest to the owners and managers of micro-companies, as well as the accounting and auditing profession. [ABSTRACT FROM AUTHOR]

The possibility of appearance of temporarily available capital determines a number of economic operations of placing them, operations that give content in business operations. The financial result, used as a measure of performance or as a reference for other indicators is presented using two types of structures: expenditure and revenues. The definitions of revenues and expenditure capture their essential characteristics, but they must complete by the criteria that must be met in order to be recognized in the profit or loss account. Revenues constitutes increases in economic benefits during the accounting period in the form of inflows or increases in assets or decreases in liabilities, which is reflected in increases in equity other than those resulting from contributions by investors. Financial expenses comprise in their structure the receivables related to equity losses, expenses on disposal of financial investments, unfavorable foreign exchange differences, interest on the current financial year, discounts to customers, receivables from financial losses. [ABSTRACT FROM AUTHOR]

This paper investigates the determinants of technological diversification among UK's small serial innovators (SSIs). Using a longitudinal study of 339 UK-based small businesses accounting for almost 7000 patents between 1990 and 2006, this study constitutes the first empirical examination of technological diversification among SMEs in the literature. Results demonstrate that technological diversification is not solely a large firm activity, challenging the dominant view that innovative SMEs are extremely focused and specialised players with little technological diversification. Our findings suggest a nonlinear (i.e. inverse-U-shaped) relationship between the level of technological opportunities in the environment and the SSIs' degree of technological diversification. This points to a trade-off between processes of exploration and exploitation across increasingly volatile technology regimes. The paper also demonstrates that small firms with impactful innovations focus their innovative activity around similar technological capabilities while firms that have introduced platform technologies in the past are more likely to engage in technological diversification. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to characterize the level of maturity of management accounting in Portuguese industrial SMEs. Specifically, the study classifies firms using Kaplan's Four-Stage model; and introduces a new model to classify them better. The research design is exploratory. The data were collected through interviews with those responsible for management accounting in 58 Portuguese industrial SMEs. The analysis used descriptive and inferential statistics and a cluster analysis was performed to classify firms according to their management accounting characteristics. The results showed that all the SMEs belong to stage 2 of Kaplan's model and that it is possible to classify them in one of the four stages of the proposed new model. Moreover, the type of firm and the source of capital have no influence on the level of maturity, although larger firms tend to have greater maturity. The study offers evidence that there is a clear difference between management accounting knowledge and practices, which should motivate top management to focus on the continuous training of firm employees on the latest developments in management accounting methods. [ABSTRACT FROM AUTHOR]

Copyright of Accounting Perspectives is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)