Analysing the changes in accounting practices within a Maltese band club

Abstract

Purpose: This research examines how financial reporting practices have changed over time since the band club’s origin. Goals and milestones from the subsequent practices and their impact on the voluntary organisation are identified. Design: To accomplish the identified objectives of this dissertation, a qualitative approach was utilised. Two different types of data collection techniques were used, archival research and semi-structured interviews. The data collected via archival research has led the researcher to analyse and interpret the financial records of the band club under review. Subsequent to this, seven semi-structured interviews were conducted. Findings: Primarily, the role of the treasurer has significantly evolved, and new roles emerged over the years. The language utilised in the financial records has altered several times throughout the years due to political, social, and technological factors. Advancements in technology have led to a shift in the recordkeeping of accounting records from a purely manual/handwritten process to the application of an off-the-shelf software, Microsoft Excel. The formation of a regulated voluntary market prompted various modifications in disclosure obligations, including the submission of a set of financial statements based on the voluntary organisation’s category. With the recent development in the Voluntary Organisation Act, the scope of the reviewer has dwindled given that non-profit organisations have to fetch a certified public accountant to handle such paperwork which eventually led to the switch from cash to accrual basis accounting. Finally, the significance of the preservation of financial records was highlighted throughout all interviews conducted. Conclusions: This study concluded that the band club’s financial records have undergone multiple changes throughout the years due to multiple factors such as the ‘Kwistjoni tal-Lingwa’ and World War II era, technological environment, regulated market, knowledge, understandability, and experience of treasurers in the accounting sector, and growth of the accountancy profession. Value: Such study is valued by the band club under review, as a vital contribution to its historical record. This type of study is relatively scarce on a local level and hence, a study of this nature will surely add further knowledge to such a field of accounting.