Accountancyhttp://repository.kln.ac.lk/handle/123456789/2142024-03-29T13:08:28Z2024-03-29T13:08:28ZSME owners and accountants’ perceptions of financial information in small- and medium-sized entities: a Sri Lanka case studyWijekoon, NisansalaSharma, UmeshSamkin, Granthttp://repository.kln.ac.lk/handle/123456789/271812024-01-09T09:39:37Z2023-01-01T00:00:00ZSME owners and accountants’ perceptions of financial information in small- and medium-sized entities: a Sri Lanka case study
Wijekoon, Nisansala; Sharma, Umesh; Samkin, Grant
Purpose – This paper aims to examine the perceptions of owners and accountants of small- and medium-sized entities (SMEs) on the users and their financial information needs of SME financial reporting. Design/methodology/approach – Postal questionnaire surveys with owners and accountants of SMEs were used to identify users and their financial information needs. In total, 1,498 questionnaires were sent to SME owners and accountants. A total of 358 questionnaires were returned, generating 323 useable questionnaires. The management branch of stakeholder theory is used for the study which asserts that company management is expected to meet the expectations of those stakeholders who are more powerful than others.
Findings – The users of Sri Lanka SME financial information were limited to owners, banks and Department of Inland Revenue. Users and financial information needs of owners varied in relation to the size of the SME. Financial information are useful for making capital investment and planning decisions for owners regardless of the size of the SME. By sharing information with outside parties, disclosures can diminish information asymmetries between the firms and its stakeholders. The top three reasons for which owners useSMEfinancial information are for planning purposes, estimating income tax liabilities, and taking marketing and pricing decisions.
Research limitations/implications – Since the study focuses only on the views of owner-managers and accountants of SMEs, the holistic understanding of uses of SME financial information by other user groups cannot be achieved. Practical implications – The results of this study provide international and local standard setters with an indication of future direction for SME financial reporting.
Social implications – This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. Consequently, the findings of this paper make a valuable contribution to the work of practitioners such as local and international standards-setters and regulators whomay be considering developing/revising financial reporting framework for SMEs either worldwide or in developing countries.
Originality/value – Although SME financial reporting has attracted enormous attention in the recent accounting literature, academic research into SME financial reporting is scant. This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. The general purpose financial reporting model and the accounting standard IFRS for SMEs in particular would not be Mangrove ecosystem · Vegetation structure · Wave dissipation, coastal protection Tsunamis · Tropical Storm surges
2023-01-01T00:00:00ZA study of the underground banking system in Sri Lanka – a phenomenon of Boyle’s lawSivaguru, DineshTilakasiri, Kamalhttp://repository.kln.ac.lk/handle/123456789/270482023-11-20T04:13:33Z2023-01-01T00:00:00ZA study of the underground banking system in Sri Lanka – a phenomenon of Boyle’s law
Sivaguru, Dinesh; Tilakasiri, Kamal
Purpose – The purpose of the study is to examine the available literature to comprehend what the underground banking system is, for what purposes this method is used and how policymakers should proceed to address this issue. Design/methodology/approach – The approach involved conducting this study and combining it with a critical analysis of the available literature as well as the available historical data. The sources the study has explored include government documents, public hearings, academic articles, case studies and articles available on the internet. Findings – The study revealed prevention of illegal proceeds is critical, still regulating one entity, is a phenomenon of Boyle’s law, “squeezing the balloon”. If one end of the balloon is squeezed, making the volume smaller, the pressure inside increases, making the un-squeezed part of the balloon expand out. The real issue is not how criminals transfer their illegal earnings; it is the criminals themselves. Hence, the policy decision on this issue needs to be carefully considered. Research limitations/implications – Due to the complexity of the operating system of Undiyal, this study had a number of limitations, as do many others. Firstly, there are no records of the Undiyal agents or the volumes of transactions publicly available. However, comprehending the scope of the underground operation that exists in the country is quite difficult. Practical implications – The study contributes to the academic researchers grasping what type of future research should be focused on in this area according to the study. Social implications – From the point of view of its practical application, the study seeks to resolve social issues that the middle-class population experiences on a daily basis and that have a huge and adverse impact on GDP. Originality/value – To the best of the authors’ knowledge, this is an original contribution.
2023-01-01T00:00:00ZThe phenomenon of trade-based money laundering (TBML) – a critical review in Sri Lankan context.Sivaguru, D.Tilakasiri, K.http://repository.kln.ac.lk/handle/123456789/264682023-07-26T06:46:52Z2023-01-01T00:00:00ZThe phenomenon of trade-based money laundering (TBML) – a critical review in Sri Lankan context.
Sivaguru, D.; Tilakasiri, K.
Purpose – Money laundering (ML) has become a significant challenge all over the world today. Trade-base d
money laundering (TBML) is a type of ML that poses a hazard to any country. In recent years, developed and
developing countries have pursued liberal policies for international financial markets. The Financial Action Task
Force (FATF) defines TBML as the process of concealing criminal earnings and shifting value through trade
transactions in an attempt to justify their illicit origins. As international financial markets have improved ML
controls, criminals have turned to the trade sector as a new venue, raising trade risks. The purpose of this study
is to highlight the danger posed by TBML and the initiatives that should be taken to prevent such.
Design/ m etho dolo gy / appr o ach – A review of publicly available reports, case studies, secondary data and
literature on TBML from a variety of Sri Lankan and international contexts comprised the methodol o gy .
However, due to the dearth of literature on TBML details/information in the Sri Lankan context, international
case studies have been analyzed. More critically, there are no precise estimates of TBML or defined protocol s
for collecting and maintaining TBML data. As a result, the FATF potential TMBL typologies were analyzed,
and typical TBML procedures were examined to identify viable treats for Sri Lanka.
Findings – The study found that TBML has a significant effect on the economy and, as a result, social
conflicts. Sri Lanka has the potential for TBML, and ML through financial institutions was identified as a
major risk. Literature, on the other hand, shows that a large quantity of money has been laundered using
TBML in Sri Lanka. The geographical location entices criminals to wash their illicit gains, and so the countr y
has potential danger from South Asian countries. However, because of the sociopolitical climate in Sri Lank a,
criminals are constantly looking for ways to profit illegally. Relaxing rules to promote foreign investm ent
may encourage launderers to use their illicit proceeds. The government needs to take great care when dealing
with this particularly delicate issue.
Research limitations/implications – Due to the complexity of financial crimes, this study had a
number of limitations, as do many others. The data used for this study was sourced from publicly availabl e
information and the TBML has been clearly defined or understood due to the fact that the complexity of the
methods used by criminals. As a result, the number of local instances reported on TMBL is quite small, hence
this study relied on international case studies.
Originali ty /v al ue – This research on TBML in Sri Lanka is original. It is anticipated that the findings and
contribution of the study would help the stakeholders develop TBML prevention measures.
2023-01-01T00:00:00ZAuditors' response to regulators during COVID-19: disclosures of key audit mattersRainsbury, E.Bandara, S.Perera, A.http://repository.kln.ac.lk/handle/123456789/261412023-05-02T09:38:53Z2023-01-01T00:00:00ZAuditors' response to regulators during COVID-19: disclosures of key audit matters
Rainsbury, E.; Bandara, S.; Perera, A.
Purpose
New Zealand regulatory bodies guided preparers and auditors of financial statements to deal with potential COVID-19 impacts on the financial statements and audit procedures. This study provides evidence of auditors' response to the impact of COVID-19 on the reporting of key audit matters (KAMs) in audit reports of listed companies in New Zealand. The purpose of this paper is to address this issue.
Design/methodology/approach
A sample of 50 New Zealand listed companies was selected to compare the KAMs in 2019 (pre-COVID-19) and 2020 (during COVID-19). The study uses content analysis to evaluate the KAMs’ disclosures and descriptive analysis to examine the differences between 2019 and 2020 in terms of the auditor type, industry sector and accounting standards.
Findings
Auditors responded positively to the request from regulators to communicate the impacts of COVID-19. The findings show an increase in the amount and length of KAMs in 2020 compared to 2019, with 82% of companies and 61% of KAMs reporting the impact of COVID-19. The real estate and information technology sectors disclosed more on the impact than other sectors. In analysing the KAMs, accounting standards for inventories, property plant and equipment, impairment of assets, investment property, revenue from contracts with customers and leases were highly affected by COVID-19.
Practical implications
The findings support regulators to evaluate how well auditors communicated matters relating to COVID-19 in the audit report. Also, the findings will help standard setters to identify key accounting standards affected by COVID-19 of KAMs and provide insights to users on how the KAM reporting enhances communicative value during the pandemic.
Originality/value
The current study captures the impact of COVID-19 on the reporting of KAMs by comparing changes before and during the pandemic.
2023-01-01T00:00:00Z