Makerere University Business School (MUBS) Collection

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http://10.29.1.53:4000/handle/10570/198

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Browsing Makerere University Business School (MUBS) Collection by Subject "Accounting information"
  • Item
    Literacy level, perceived external user pressure and perceived accounting information quality: a case of SMEs in Kampala District
    (Makerere University, 2011-02) Nalukenge, Irene
    The purpose of the study was to examine the relationship between literacy level of owner managers, external user pressure and the quality of accounting information among the SMEs. It has been suggested that the quality of accounting information in the SMEs is questionable with many external users doubting its reliability. Such quality has been attributed to low literacy level (basic and functional) and lack of external pressure from users. The specific objectives of the study included assessing the perceptions of URA and Financial Institutions about the quality of accounting information of SMEs and examining the relationship between the independent variables and dependent variable. Cross sectional research design combined with descriptive research design were used. The survey population majorly included Small Medium Enterprises. To answer objective one Financial Institutions and Uganda Revenue staff in Kampala District were included in the study. Purposive sampling was used to select the sample for the SMEs while stratified sampling was used for the financial institutions to ensure fair representation of both commercial and micro finance institutions. The questionnaires were administered by the researcher. The findings showed that accounting information was not reliable, but relevant and understandable to external users. Other findings showed that the higher the SME ownermanagers were basically literate and had training in as far as book keeping and accounting the better the quality of accounting information. External pressure from users also improved the quality of accounting information. It was recommended that associations like Enterprise Uganda, Kampala City Traders Association and Uganda Small Scale Industries Association train owners and book keepers how to prepare quality accounting information since literacy predicted more the quality of accounting information.
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    Perceived quality of accounting information and performance of Small and Medium Enterprises (SMEs)
    (Makerere University, 2011) Matovu, Bakisa Harriet
    Quality information is critical to organizations’ success in today’s highly competitive environment. The Statement of Accounting Concepts 3, International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB, 1980) developed a conceptual framework for financial reporting where relevance, reliability, understandability and comparability are the qualitative characteristics that financial accounting information should possess. Empirical studies found accuracy as a distinct dimension of accounting information quality from reliability. Basing on this background, the study covered relevance, reliability, understandability and accuracy. There is a belief that there is a relationship between these qualities and performance of small and medium size enterprises. However, very little empirical investigation has tested the presence of this relationship. This dissertation investigates the correlation between quality of accounting information and performance of small and medium enterprises. 160 participants from different categories of selected small and medium enterprises (SMEs); with 103 (64%) usable responses received. With the belief that there is a relationship between quality of accounting information and the performance of small and medium enterprises, individual qualitative characteristics (relevance, accuracy, understandability, reliability) were tested with the performance. A significant positive linear relationship was found between quality of accounting information and performance of SMEs. The findings on the correlation relationship indicate that quality of accounting information in terms of relevance, accuracy, understandability and reliability enhanced on the performance of small and medium enterprises. From the findings of the study, it is recommended that for better decision making and improved performance of small and medium enterprises, accounting information should be relevant, accurate, understandable and reliable.