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|Title:||Explaining accounting policy choices of SME’s : an empirical research on the evaluation methods|
Damagum, Yau M.
|Keywords:||Small business -- Finance|
Accounting -- Standards
Accounting -- International cooperation
Financial statements -- Standards
|Publisher:||University of Piraeus. International Strategic Management Association|
|Citation:||Fekete, S., Damagum, Y. M., Mustata, R., Matis, D., & Popa, I. (2010). Explaining accounting policy choices of SME’s : an empirical research on the evaluation methods. European Research Studies Journal, 13(1), 33-48.|
|Abstract:||Analyzing accounting issues relative to small and medium sized entities (SMEs) we found the influence of taxation as the main leitmotif in the Romanian literature. However, weak empirical evidence is provided to sustain this argument. In this paper we investigate the accounting policy choices of SMEs, particularly those related to the evaluation methods. Our purpose is to find some “pattern” in these decisions and to identify the main factors that trigger them. Data for the study was collected through a survey in which respondents were requested to indicate the degree to which each of the factors listed in the questionnaire influenced their choice of accounting methods. After controlling for size, we applied the principal component analysis technique in ascertaining the impact of factors. Our results though consistent with the reviewed literature, are still surprising. This is in the sense that while taxation seems to remain the strongest influence factor, the weakest happens to be the true and fair view (TFV) consideration. In finding some possible explanations to this, we leave this question open: is it possible that the overwhelming academic concept of TFV is an empty vessel for practitioners?|
|Appears in Collections:||European Research Studies Journal, Volume 13, Issue 1|
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