USERS’ PERCEPTIONS ON THE USEFULNESS OF THE SMES’ ACCOUNTING INFORMATION: MALAYSIAN CASE

Abstract

This study investigates the perceived usefulness of selected accounting information presented in the SMEs’ financial statements. Mailed questionnnaires were sent to SMEs’ owner and loan officers in Malaysia. The findings showed that the SMEs’ owners and loan officers have substantially similar views on the usefulness of the accounting information. In addition, this study found that type of business organisation, academic qualification, time spend in reading the financial statement, level of understanding of the financial statements and awareness about financial reporting regulation do not have significant relationship with the SMEs’ owners’ perceptions on the usefulness of the accounting information. On the other hand, for the loan officers, experience in assessing SMEs’ financial statements was found to have a significant relationship with the loan officers’ perceptions on the usefulness of the accounting information, while accouting expertise, year in position, awareness about financial reporting regulation are not. The results of this study may provide awareness to the SMEs’ managers on the informational needs of the users of their financial statementsSMEs, financial reporting, usefulness, accounting information