Abdel K. Halabi

Understanding financial information used to assess small firm performance: An Australian qualitative study

Purpose - The purpose of this paper is to investigate the reality of financial and management accounting in a small group of small firms. Specifically, from the owners perspective, an exploration is undertaken to see what financial information is collected, how it is used (or not) to make business decisions and evaluate the firms performance, and the role played by the accountant in that process. Design/methodology/approach - A phenomenological paradigm underpins this exploratory study. Semi-structured interviews were undertaken with the owners of ten small firms, where the focus was on understanding what happens in an organisational setting, as opposed to theory and textbook practice. Findings - The qualitative data supported prior research in other countries. The in-depth analysis revealed a very basic understanding of accounting information and problems with the financial literacy amongst these small firm owners. Accounting reports were not widely produced or used, so an informal assessment, such as how much cash was in the bank, was the primary means of assessing business performance. Accountants were used for taxation services, although some owners sought more general business advice. Originality/value - An understanding is developed of why there might be a gap between textbook rhetoric and reality of accounting practice in small firms. The conclusion is that accounting textbooks need to include more information about the reality of financial management in small firms.

The use of multiple performance measures and the balanced scorecard (BSC) in Bangladeshi firms: An empirical investigation

Aims – This paper aims to examine: the status and the use of financial and non‐financial measures, and the balanced scorecard (BSC) in Bangladeshi companies; the reasons for BSC adoption; and associated problems.Design/methodology/approach – Data via a questionnaire were obtained from the chief accounting and finance officers of a cross section of 60 Bangladeshi companies listed on the Dhaka Stock Exchange. A combination of descriptive statistics, bi‐variate, and multi‐variate techniques of statistics were used to test three research questions.Findings – The results indicate that financial measures are more widely used, but that 78.4 per cent of companies use some non‐financial indicators. Further, the exercise of a full BSC is limited to only 10 per cent of the sample. The results also show that companies adopt these frameworks to aid decision making, and the problems associated with the adoption of BSC include a cost‐benefit perspective and a lack of management support.Practical implications – The findi...

Understanding financial information used to assess small firm performance

Purpose - The purpose of this paper is to investigate the reality of financial and management accounting in a small group of small firms. Specifically, from the owners perspective, an exploration is undertaken to see what financial information is collected, how it is used (or not) to make business decisions and evaluate the firms performance, and the role played by the accountant in that process. Design/methodology/approach - A phenomenological paradigm underpins this exploratory study. Semi-structured interviews were undertaken with the owners of ten small firms, where the focus was on understanding what happens in an organisational setting, as opposed to theory and textbook practice. Findings - The qualitative data supported prior research in other countries. The in-depth analysis revealed a very basic understanding of accounting information and problems with the financial literacy amongst these small firm owners. Accounting reports were not widely produced or used, so an informal assessment, such as how much cash was in the bank, was the primary means of assessing business performance. Accountants were used for taxation services, although some owners sought more general business advice. Originality/value - An understanding is developed of why there might be a gap between textbook rhetoric and reality of accounting practice in small firms. The conclusion is that accounting textbooks need to include more information about the reality of financial management in small firms.

Empirical Evidence Examining the Accounting Information Systems and Accounting Reports of Small and Micro Business in Australia

Abstract This paper examines the nature and type of accounting information system kept by small and micro businesses in Australia. Small and micro businesses are under no legal obligation to produce accounting reports, but must comply with taxation provisions. The present study reports on the findings from 121 small and micro businesses, and results show that micro businesses rely more heavily on manual methods, while small businesses are more likely to use computerized systems. In terms of accounting reports, results show the profit and loss statement is produced by 65% of micro businesses and 80% of small businesses, yet significantly more small businesses produce a balance sheet. The finding that not all small and micro businesses produce accounting reports has implications for owners and the accounting profession.

Football history off the field: Utilising archived accounting reports to challenge “myths” about the history of an Australian football club

The Australian Football League (AFL) is the largest professional sports competition in Australia. Most AFL clubs began as amateur bodies in the nineteenth century, but to survive they have had to adapt to changes in demand and production costs by adopting a commercial management approach. Because financial management is seen by most club members as secondary to the core business of winning games, accounting data is generally invisible in football histories. We use a range of accounting information from annual reports, committee Minute Books and media commentaries from 1910 to 1917 to demonstrate how financial data can be used to enhance our understanding of the history of one AFL club – Carlton. In particular, we show how previously overlooked accounting records can enrich the history of this sporting club as well as challenge long held “myths”, thus creating new understandings of Australian football history.

Preliminary evidence of a relationship between the use of online learning and academic performance in a South African first-year university accounting course

Abstract This paper examines the relationship between the use of online learning resources and academic performance in an Accounting 1 course conducted at a South African Higher Education Institution. The study employed a quantitative analysis over three academic years comparing the collection of end of year marks and the time spent online. The results provide preliminary empirical evidence to show that students who spent more time online significantly improved their course mark. Although much accounting-based educational research exists on the use of computers, there is a dearth of research testing any relationship between the use of online learning material and performance. While the results are preliminary and have some limitations, they are useful to students, teaching instructors and administrators, and provide a platform for future research into the value of using online learning in accounting.

The Accounting Undergraduate Capstone: Promoting Synthesis, Reflection, Transition, and Competencies

The authors review 24 midwestern institutions that have an undergraduate capstone course. Specifically they focus on accounting capstone courses, discovering that these are used to promote personal and functional skill development in 8 areas: research, problem solving, critical thinking, reflection, synthesis, teamwork, communication, and professional orientation. These skills are targeted as they prepare students to enter the accounting profession and make connections with the business environment. These skills track closely with the competencies identified in the American Institute of Certified Public Accountants Core Competency Framework.

The usefulness and interactions of WebCT from an Accounting student's perspective

This chapter examines student responses to the usefulness of online course materials available through WebCT in an introductory accounting unit. Of particular importance was whether students felt that WebCT provided the key interactive opportunities for effective teaching and learning as outlined by Moore (1993). Results showed that students overwhelmingly felt that WebCT was useful and provided efficient interactions between the content and the learner. WebCT also has the potential for effective interactions between the instructor and the learner. Among learners, however, these are yet to be fully realized. Given the dearth of research in this area, the findings have implications for faculty members, students, and university administrators.

Accounting tele teaching lectures: issues of interaction and performance

Abstract This paper provides empirical evidence on two aspects related to using tele teaching to deliver accounting lectures. The first issue examines student opinion on whether tele teaching lectures provide educational interactions between the learner and the instructor similar to face-to-face teaching. The second issue examines the subject performance of students who were tele taught against a similar group that were lectured face-to-face. Results showed that students viewed the tele taught lectures as lacking in learner–instructor interactions however the performance differences were not significant.

Understanding financial information used to assess small firm performance : an Australian qualitative study

Purpose - The purpose of this paper is to investigate the reality of financial and management accounting in a small group of small firms. Specifically, from the owners perspective, an exploration is undertaken to see what financial information is collected, how it is used (or not) to make business decisions and evaluate the firms performance, and the role played by the accountant in that process. Design/methodology/approach - A phenomenological paradigm underpins this exploratory study. Semi-structured interviews were undertaken with the owners of ten small firms, where the focus was on understanding what happens in an organisational setting, as opposed to theory and textbook practice. Findings - The qualitative data supported prior research in other countries. The in-depth analysis revealed a very basic understanding of accounting information and problems with the financial literacy amongst these small firm owners. Accounting reports were not widely produced or used, so an informal assessment, such as how much cash was in the bank, was the primary means of assessing business performance. Accountants were used for taxation services, although some owners sought more general business advice. Originality/value - An understanding is developed of why there might be a gap between textbook rhetoric and reality of accounting practice in small firms. The conclusion is that accounting textbooks need to include more information about the reality of financial management in small firms.