Small and Medium Enterprises ( SMEs ) dominate the economic activities in Cambodia while this state is eager to accomplish the higher economic growing rate in order to cut down poorness. Increasingly, SMEs make up about 99 per centum of all endeavors and absorb about half of employment.
By transporting out a study based method, this research will show and analyse some issues related to the accounting patterns in SMEs in Cambodia. It will besides happen out what sorts of accounting information do SMEs see utile, and what do they really use.
The ordinances are the chief thrusts why SMEs fix fiscal statement and fiscal information. Furthermore, there are some SMEs called “ Non-preparers ” who prepare nil, non even Balance Sheet and Income Statement. This is because of their concern size, or they are in the concern sectors such as handcraft, mending service, touristry service and so on which do non necessitate making so. Taking care their clients, and foretelling their sale activities are really the major grounds why their concerns still operate and run successfully.
I. Introduction
The primary end of Kampuchean authorities is to cut down the incidence of poorness. In the battle against poorness, the authorities recognizes that Small and medium Enterprises ( SMEs ) play a important function in advancing economic development and making sustainable employment and incomes. That is why the SME Development Framework has been developed to better and organize the authorities ‘s attempts in advancing SME activity in a market economic system. It besides incorporates and elaborates the Government ‘s cardinal SME policies including that set out in the July 2004 ‘rectangular scheme ‘ ( Constructing Peace, Stability and security ; international and regional integrating ; and economic publicity and societal development ) .
Because of their importance in economic growing and poorness decrease, the Royal Government of Cambodia has emphasized the of import function SMEs play through assorted policy paperss including the Second Socio-Economic Development Plan and National Poverty Reduction Strategy. The Government ‘s ‘Rectangular Strategy ‘ besides emphasizes the importance of the SMEs and sets out 13 SME development policies for beef uping the SME sector. Through these schemes the Government has made it clear that SMEs will be a major accent of economic development constabularies for many old ages to come.
States frequently use specific definitions of SMEs for administrative or legal intents. Those definitions are based on the dimension of endeavors. All endeavors below a certain threshold are normally considered SMEs. In some states, these thresholds can change in different contexts ( i.e. for accessing to particular recognition lines, for describing on financial and other administrative duties, etc. ) and can be expressed in footings of figure of employees, fixed assets value, entire assets value, paid-up and registered capital, one-year gross revenues, value of production, equity capital or some other step.
Cambodia does non yet have a legal definition of what constitutes an SME. SMEs have been diversely defined in footings of either value of fixed assets excepting land, size of employment or a combination of the two. While some statistical informations has been collected for SMEs, there is by and large a deficiency of accurate information available. The limited statistical informations, compounded by the deficiency of a definition for SMEs, has led to uncertainness and confusion as to what is an SME.
However, harmonizing to Ministry of Industry, Mine and Energy, one feasible definition could be based on employment and the other on size of capital in existent footings. SMEs in Cambodia are divided into three sectors, Production sector including agricultural processing, fabrication, and excavation, Service sector, and Trading sector including sweeping and retail. That definition can be summarized as in the below tabular array ;
In Cambodia, 99 % of the figure of houses and 45 % of employment are dominated by the Small and Medium Enterprise ( SME ) sector in Cambodia ‘s economic system. They are playing assorted and critical functions non merely in heightening regional development, but besides hiking free market economic system.
To sum up, the of import functions of SMEs are as follow:
Generate employment chances, raise income degrees and life criterions specially in the parts, decrease poorness
Create an enterpriser category, which is so necessary for industrial development.
Increase natural stuff supplies, particularly to fabricate exports, which boost economic growing.
Create self-employment, which would enable people to populate and work with self-respect.
Given that the economic system is dominated by SMEs, the hereafter development scheme of the state must take into history the SME sector so that its rapid growing will ensue in increased productive employment and decreases in poorness. A cardinal factor in beef uping the SME sector is to cut down the cost of making concern. Cambodia is confronting tough competition from neighbouring states, which have lower cost concern environments as a consequence of better substructure, a better trained labour force and lower costs related to bureaucratic ruddy tape. As Cambodia becomes more incorporate with international markets through its rank in the World Trade Organization, it will be critical for SMEs to go more competitory and to better integrate into both national and international markets.
This research will so show and analyse some issues related to accounting information, particularly and merely for fiscal and direction accounting patterns in SMEs in Cambodia. Survey based method will be used in carry oning this research survey. It will happen out what sorts of accounting and fiscal information do SMEs in Cambodia consider utile, and what do they really use.
One motive for this research survey is to understand the constructs and patterns of fiscal and direction accounting in SMEs in order to incorporate and accommodate them to plan a suited attack for the bing SMEs.
Therefore, the chief aims for this research survey are as follows:
To study what kinds of accounting and fiscal information do SMEs in Cambodia consider as utile
To study what kinds of accounting and fiscal information do SMEs in Cambodia usage
To study the fiscal and direction accounting patterns used in SMEs in Cambodia.
II. LITERATURE REVIEW
Businesss are created with a position toward fiscal success. Due to miss of necessary planning and know-how, many fail to last their first twelvemonth. Possibly the most of import component of success is the ability to be after an alteration programs with conditions ( Wiersema, 2005 )
2.1 Accounting and its Information
Accounting is a systematic procedure of mensurating the economic activity of a concern to supply utile information to those who make economic determinations. In add-on, accounting information systems provides the agencies of roll uping, forming, and sum uping the economic minutess informations which is so transformed into accounting information by accounting judgements, patterns and application of regulations ( kotchetova, 2003 ) .
Figure 2.1 presents a theoretical account of accounting procedure. In order to be efficient and competitory, SMEs must recognize the demand of sound accounting patterns in pull offing their concern activities and in doing quicker and better determination. Whatever fiscal support is provided to the development of SMEs, the consciousness of the enterprisers and support of accomplishment human resources would be inevitable for their success.
Fiscal Accounting
Fiscal Accounting is the face your concern shows the outside universe, through the fiscal statements that are prepared for Bankss, shareholders, investors, and authorities bureaus. These fiscal statements are fundamentally historical records that cover a peculiar clip period, including balance sheet, income statement, statement of hard currency flow, and statement of stockholders ‘ equity ( Webster, 2004 ) . Furthermore, fiscal accounting information is the merchandise of corporate accounting and external coverage systems that step and publically unwrap audited, quantitative informations refering the fiscal place and public presentation of publically held houses ( Bushman et al. , 2001 ) .
Harmonizing to Yu-Lee ( 2005 ) , there are three jobs the typical director frequently runs into when seeking to cut down costs, increase hard currency flow, better borders, or salvage money: ( 1 ) the relationship between cost decrease and hard currency flow is non as it should be ; ( 2 ) techniques used to cipher the betterment are frequently flawed ; ( 3 ) the rhetoric used is equivocal.
The most widely used set of accounting rules is referred to as by and large accepted accounting rules ( GAAP ) . GAAP is presently set by the Financial Accounting Standards Board ( FASB ) . In statement of Financial Accounting Concepts No. 1: Aims of Financial Reporting by Business Enterprises ( SFAC1 ) [ 1978 ] , the Financial Accounting Standards Board ( FASB ) maintains that the map of fiscal accounting is to bring forth information utile to a group of users ( investors and creditors ) for decision-making ( Salvary, 2003 ) .
International Accounting Standards are the most effectual tool for harmonisation with planetary accounting pattern and rule. The Standards steer the concern in dealing recording and representation to see its worlds and finally the consequence of the operation of the concern ( Hussain, 2003 ) . The chief aims of the accounting criterions are to hold high quality, transparence, comparable and apprehensible information in fiscal statements and to advance their universe broad credence and harmonisation in the field of accounting ( Hussain, 2003 ) . International Accounting Standard Committee ( IASC ) issues International Accounting Standards ( IASs ) , most late replaced by International Financial Reporting Standards ( IFRSs ) , which are implemented by the states and endeavors for their accounting system. IASB ( 2004 ) recognizes that in most states, many or even all entities have a legal duty to fix fiscal statements that conform to a needed set of accounting rules that are by and large accepted in that state ( national GAAP ) .
Across the EU and in many other states, from 2005 all quoted companies will utilize International Financial Reporting Standards ( IFRS ) and such alteration from national accounting regulations to international accounting regulations will let better comparing of companies ‘ consequences across different states ( O’Brien, 2003 ) .
However, following International Accounting Standards ( IAS ) does non in itself guarantee high transparence. Because it is inexpensive for states such as Cambodia with low-transparency inducements to follow the IAS label, high-transparency states might be hesitating to place their criterions with IAS ( Ball et al. , 2000 ) .
In Cambodia, the fiscal statements have to be prepared, by state-owned endeavors and private companies, in conformity with Kampuchean Accounting Standards ( CAS ) issued by National Accounting Council ( NAC ) . NAC had issued 15 CAS and ten Kampuchean Standards on Auditing ( CSA ) . In conformity with the CAS-1, as developed from IAS-1 [ paragraph 7 of IAS 1 ( IASB, 2002 ) ] , a complete set of fiscal statements includes the undermentioned constituents:
Balance sheet ;
Income statement ;
A statement demoing either ( I ) all alterations in equity ; or ( two ) alterations in equity other than those originating from capital minutess with proprietors and distributions to proprietors ;
Cash flow statement ; and
Accounting policies and explanatory notes.
2.3 Management Accounting
Management accounting is the pattern of identifying, roll uping, screening, gauging, and analysing cost, public presentation, and other information to do timely determinations and to be after and command the hereafter through budgets, prognosiss, and estimations ( Webster, 2004 ) .
Drury and Tayles ( 1995 ) concluded the issues derived from the other studies that the same regulations and processs established for external coverage ( fiscal accounting ) are likely besides to be applied to internal coverage ( direction accounting ) even some regulations, referred to theory, are inappropriate for direction accounting. Though external and internal coverage tend to use the same regulations, it does non intend that direction accounting is subservient to fiscal accounting. The ground that most companies adopt the indistinguishable patterns for both describing systems is because houses prefer their internal net income to describe systematically with external fiscal accounting demands so that they will be comparable with foreigners ‘ appraisals of overall company public presentation. In the other words, companies would wish to be ensured that internal accounting systems do non hold any struggles with external fiscal accounting demands.
In order to understand more in-depth direction accounting, its aims had been highlighted here ( Amat et al. ) :
Conformity: some states have explicit national cost accounting ordinances or demands. Conformity with revenue enhancement regulations or monetary value controls can besides hold an impact on direction accounting.
Bonus Schemes: both the extent to which direction accounting information is employed and the ways in which it is used, for salary and bonus determinations vary between states.
Political orientation: Bromwich and Wang ( 1991 ) , discoursing the spread of western direction accounting techniques in China, observe: “ slightly surprisingly from a western position, the philosophical position in China required theoretical and political justification of these techniques before they could be applied ” ( p.53 ) . Similarly, Lin & A ; Deng ( 1992 ) observe: “ The nature of accounting is defined as something that is per se ideological ” ( p.173 ) .
Competition: the growing of competition gives rise to an aim of more effectual direction accounting
The protagonism function: In some states there is a stronger inclination than in others for budgets to be manipulated to back up a director ‘s coveted instance.
Operational engagement: the contrast in the function of the direction comptroller in the UK and Germany has been highlighted in the survey of accounting in the brewing industry by Ahrens ( 1997 ) .
Attitudes to labour cost: there is a difference between a cost cutting function in the UK and an expressed rejection of that function in France and Belgium.
Despite the fact that direction accounting is of import, many SMEs owners/managers fail to use these informations good. Since they do non be after in front and needed information is prematurely prepared when needed, as a consequence determinations are frequently put off ( Turner 1997 ) . Holmes and Nicholls ( 1989 ) summarized direction accounting information is associated with success and failure in SMEs depending upon how they produced and utilised in their companies.
However, Horngren ( 1995 ) argued that cost accounting or direction accounting constructs and techniques are impersonal instruments. It is non the cause of hapless direction but chiefly symptoms since it may be used sagely or doltishly by directors of the houses. He besides suggested the standard to judge a direction system by utilizing the cost-benefit standard. Undoubtedly, cost-benefit standard is normally acceptable. Sophisticated systems are expensive and time-consuming. In contrast, simple systems might non be accurate adequate for bring forthing study in some instances. Therefore directors should exhaustively see about pros and cons of the installing and version of systems in the houses to achieve functional system at sensible cost.
Activity-Based Costing ( ABC ) is a system of bing proposed by Professor Johnson and Robert Kaplan in their book “ Relevance Lost: The Rise and Fall of Management Accounting ” in 1987. Dey and Bhattacharyya ( 2004 ) stated that “ as a powerful tool for mensurating public presentation, ABC is used to place, depict, assign costs and studies this on bureau operations. It is a more accurate cost direction system than Traditional Cost Accounting ( TCA ) . ABC identifies the chances to better concern procedure, effectivity and efficiency by finding the “ true ” cost of merchandise and serviceaˆ¦ Most companies seem to acknowledge that their costing systems are non antiphonal to today ‘s competitory concern environment. The methods of allotment of operating expense among their merchandises are hopelessly disused, rather simple and unequal. ABC helps to apportion cost on the footing of cause and consequence relationship. ”
However, in the Asiatic states, largely in developing states, traditional direction accounting patterns are still widely used for assorted grounds like the deficiency of consciousness of new techniques, the deficiency of expertness and, possibly, more significantly, and the deficiency of top direction support. Extra factors include the high cost of execution and the fact that there merely was “ no ground to alter ” from the traditional technique to the new tool ( Tho et al. , 1998 )
Apparently, accounting and fiscal information are of import to SMEs in order to use in fiscal direction, determination devising, and operation through assorted studies ( balance sheet, income statement, hard currency budget, etc. ) and methods ( fiscal ratio analysis, etc. ) However, SMEs owners/managers should non overlooked the procedure in obtaining informations and fixing studies since if they wrongly record, they would bring forth meaningless studies. Then they may do determination in the incorrect ways.
III. METHODOLOGY
This subdivision will chiefly explicate designation of survey countries, the process for informations aggregation, informations analysis and the restraints or restriction faced by the research worker during informations aggregation. To analyze and look into fiscal and direction accounting patterns in SMEs, this survey is chiefly based on quantitative research by using the questionnaire study as a major instrument. In add-on, descriptive analysis is used to explicate phenomena, response to the inquiries largely on usage and utility of fiscal and direction accounting in patterns for SMEs, every bit good as step relationships between variables consistently and statistically.
3.1 Methodology
This research was carried out by garnering informations from both secondary and primary informations that enable to accomplish the research aims. With relevant collected informations, informations analysis was conducted based on theoretical model and so decision is presented.
Secondary Data Collection
A comprehensive literature reappraisal was conducted with relevant articles and research documents to derive in-depth cognition about concerned subject in general and patterns in other states. In Cambodia, there is non much widely treatment related to fiscal and direction accounting patterns and related issues. Most of the old surveies are related to financing SMEs in Cambodia, confer withing services in Cambodia particularly in SMEs.
Primary Data Collection
Based on literature reappraisal and theoretical model, the questionnaire study was developed to be the major tool for this research survey. The aim is to derive an apprehension of fiscal and direction accounting patterns in SMEs in Cambodia. By utilizing a research survey of Guilding et Al ( 2000 ) as a guideline, this research focused chiefly on what and how fiscal and direction accounting patterns are used in the company and respondents ‘ sentiment on utility of the patterns.
After the questionnaire was developed, it was so distributed to the relevant section in the assorted SMEs in Phnom Penh, sooner to the Finance Department. We had requested the company to direct the questionnaire to the finance section and preferably we would wish the proprietor, finance director, or at least the comptroller to make full up the questionnaire ; so that the information obtained will be dependable and valid.
Numbers of Completed Questionnaires
In instance of this research survey, like many others, there are some people who did non react to the questionnaire. Table 3.2.1 presents the figure of distributed and gathered questionnaires.
3.3 The Organization of the Questionnaire
The questionnaire was divided into two subdivisions – general information of the endeavor and degree of sentiment indicated the specific statements – which responded to the accounting information categorizations used by Holmes and Nicholls ( 1989 ) every bit good as McMahon ( 1999 ) – Statutory ( ST ) , Statutory/Budget ( SB ) , and Statutory/Budget/Additional ( SBA ) .
The organisation of questionnaire could be classified as follows:
Features of the endeavors and their accounting organisation and patterns
General features of the houses: location, concern age, registered capital and fixed assets value ( exclude land ) , figure of employees, nature of concern, chief concern activity, signifier of legal enrollment, phase of development, one-year gross.
Use of both fiscal and direction accounting patterns including aims every bit good as the ways of utilizing accounting information
Attitude toward the preparation plan in related issues i.e. accounting patterns, revenue enhancement ordinances
Features of owners/managers and in-charge of fiscal and accounting affairs:
The inquiries asked about the degree of cognition, accomplishment, and acquaintance with accounting.
Statutory
Method and frequences in readying of fiscal statements
The constituent of one-year fiscal statements which they prepare and how much they are complied with ordinance set by National Accounting Council ( NCA ) and Tax Department which are chief regulative organic structures to pull strings the related issue.
Budget and cost direction
Product/service cost measuring
Budgeting
Extra information
Discrepancy analysis
Fiscal indexs
3.4. Variable Measurement
The survey of Holmes and Nicholls ( 1989 ) indicated the important influences on such information acquisition or readying in the company based on four variables: ( a ) concern size ; ( B ) the figure of old ages the concern had been runing under bing direction ; ( degree Celsius ) industrial sector ; and ( vitamin D ) the instruction of a concern ‘ owner/manager. Therefore, utilizing these variables as the guideline, this research indicates three independent variables which are concern size ( categorized by registered capital, fixed plus excepting land, figure of employees and one-year gross ) , concern age, and industrial sector to analyze the usage and utility of fiscal and direction accounting patterns.
In order to measure variables, Likert graduated table was provided in the questionnaire for evaluation the degree of respondents ‘ attitude toward the given statements. The statements are specified chiefly on usage rate and perceived virtue of the studied subject. The Likert graduated table provided is ranged from “ 1 ” ( strongly disagree ) to “ 4 ” ( strongly agree ) . Furthermore all the inquiries, respondents could besides bespeak “ make non cognize ” if they do non cognize whether the proposed statement is applied to accounting patterns in their organisation. Using five graduated tables from strongly differ to make non cognize might non be usual ; nevertheless, the purpose is to avoid the raters that are loath to give utmost judgements therefore doing equivocal in informations analysis.
3.5 Data Analysis Methods
Statisticss and descriptive analysis are applied in order to gaining control and explicate study phenomena. Most of the consequences would be analyzed by frequence, per centums, agencies and standard divergence. Paired t-Test would be used for measurement relationship of usage and utility of each variable, chiefly on fiscal indexs and discrepancy analysis. Furthermore, one-way ANOVA and independent sample T-test were employed to compare any differences among given variables. Spearman ‘s Rank Correlation had been used to cipher the grade of correlativity between Use and Usefulness of both Financial Accounting Indicators and Management Accounting Practices. The expression for Spearman ‘s Rank Correlation is:
The hypotheses t-test, Rank Correlation had been applied to prove the significance of R with the expression:
with grade of freedom = ( n-2 ) and 0.05 significance degree.
The consequences of analysis could be interpreted in table 3.5.1.
The relationship between one variable and others would be tested quantitatively by following with hypotheses proving at the 95 % assurance interval ( I±=0.05 ) . The hypotheses are following:
H0: Given variable is non related to other given variable
H1: Given variable is related to other given variable
Besides, the differences would be tested under hypotheses proving at the same assurance interval.
3.6 Scope and Limitation of the Study
Due to limited clip, resources and fiscal restraints, the range was limited and the research is conducted based on:
The accounting information merely composes of Financial and Management Accounting Information. This study does non take into history the Tax Accounting Practices.
The fiscal and direction accounting patterns in SMEs in Cambodia within the selected SMEs, chiefly in Phnom Penh metropolis. It does non concentrate on all metropoliss and states in Cambodia.
The handiness of informations collected
The interview with some comptrollers ( through naming ) , some man of affairs, and the secondary informations.
IV. ANALYSIS AND DISCUSSION
Use and Usefulness Perception of Accounting Practices
In General
Table 4.1.1 nowadayss the usage of accounting patterns in the houses. Overall, the endeavors have concerned in utilizing accounting patterns in of import degree for their companies ( average = 2.958 ) . In add-on, they besides concerned in utilizing it in general aim ( average = 2.96 ) . With consideration in each aim, the surveyed endeavors showed that they employed accounting patterns for analysing their fiscal place and public presentation ( average = 3.16 ) . Second one is for describing to the province organic structures ( average = 3.12 ) . For turn outing the fiscal stableness to the loaners and to the spouses are about in the same degree ( of import with the average = 2.80 and intend = 2.75 severally ) .
The standard divergence of these measurings is rather broad, particularly utilizing fiscal and direction accounting for turn outing the fiscal place to the spouses ( with the standard divergence of 1.057 ) . Therefore, the statistic consequences concluded that the surveyed endeavors have concerned the least in footings of utilizing accounting patterns for turn outing the fiscal place to the spouses. On the other manus, the statistics consequences investigated that the most they have worried in utilizing accounting patterns is for analysing the fiscal place and public presentation ( with the standard divergence = 0.807 ) .
Table 4.1.1 shows, among the surveyed companies, that accounting package use is of import to pull off informations every bit good as in fixing accounting and fiscal studies ( average = 3.25 ) . These endeavors besides use, in the of import degree, fiscal information provided by other companies to better themselves i.e. concern public presentation betterment ( average = 2.75 ) . From the tabular array 5.6, it besides presents the surveyed companies which have extremely extended usage of accounting information in determination devising and strategic planning ( average = 2.91 ) .
The utility of accounting patterns in the houses is presented in Table 4.1.2 The endeavors have concerned the utility of accounting patterns for fiscal place and public presentation analysis in the most of import degree ( average = 3.30 ) and they concerned it in the of import degree in operative direction of the endeavor. Furthermore, the fiscal accounting informations produced for regulator intent is besides of import for internal determination devising ( average = 3.17 ) .
Harmonizing to the study, respondents indicated degree of their sentiment on utility of assorted direction accounting patterns and fiscal accounting indexs. SMEs seem to acknowledge utility of these patterns and indexs. In order to look into which patterns SMEs consider the most of import and the least of import for them, direction accounting patterns and fiscal accounting indexs were rank together. The list of direction accounting patterns and fiscal accounting indexs could be listed in table 4.1.3.
4.2 Fiscal Accounting Indexs
Table 4.2.1 nowadayss the Use and Usefulness of Financial Accounting Indicators. By and large the investigated companies extremely employ the fiscal accounting indexs to measure the company public presentation and they consider its utility in the of import degree for their endeavors ( intend = 3.08 and 3.12 severally )
Among these indexs, the most of import fiscal appraisal is gross revenues and the least of import one is return on assets ( ROA ) . It might be inferred from the study that most of the investigated houses are sale-oriented since they greatly consider their net income and loss. On the other manus, they ignore Balance Sheet statement to analyse resources used in the organisation. Apparently from following three of import indexs, they are net net income, growing rate of gross revenues, and net net income.
In position of their utility, the investigated endeavors besides take into history the gross revenues. In contrast, most houses are likely to pay less attending to stock list degree, return on equity ( ROE ) and return on assets ( ROA ) .
By using Spearman ‘s Rank Correlation ( R )[ 1 ]trial, a really high grade of positive correlativity ( rs = 0.912 ) has been obtained between the ranks in utilizing and utility of the fiscal accounting indexs and it indicates a really strong relationship between the usage and their utility. There are 10-pairs of ranks ; the significance of R has been testicles here by using hypotheses t-test[ 2 ], Rank Correlation, with [ ( n-2 ) = ( 10-2 ) ] 8 grade of freedom ( df ) , with the undermentioned hypothesis:
( The rank correlativity in the population is zero )
( The rank correlativity in the population is positive among the rank )
The computed value of t = 6.29 ; hence, void hypothesis ( H0 ) is rejected because the computed T ( t = 6.29 ) is greater than 1.833 ( from Student ‘s t Distribution Table with 0.05 significance degree, One-Tailed trial and 9 df ) . The alternate hypothesis is accepted and it can be concluded that the rank correlativity in the population is different from zero, or there is a positive correlativity between the ranks in utilizing and in utility of fiscal accounting indexs. Sing the overall mean in utilizing and usefulness, it can be inferred that despite their apprehension about the utility, fiscal accounting indexs are non used every bit broad as their utility among the surveyed endeavors. It might be because of many grounds such as deficiency of skilled people and possibly for extra costs.
For all the fiscal accounting indexs, the ideal agencies are expected to be 4 ( the highest rank ) . Therefore, following two types of difference or spread can be observed from table 4.3.2.
Gap to Ideal = ( Ideal Mean – Mean in Usefulness )
Aspiration Gap = ( Mean in Usefulness – Mean in Using )
One sample-t trial has been applied against the expected average value of 4 to look into the cogency of the “ spread to ideal ” . The consequence of T value = -16.210, which is lower than -2.262. [ From Student ‘s t Distribution Table with 0.05 significance degree, two tailed-test, and ( 10-1 ) = 9 df ] . Therefore, it can be concluded that the average values of utility of Financial Accounting Indicators are significantly lower than the ideal mean. That means the spread to ideal is statistically important.
In order to look into the “ aspiration spread ” , paired-t trial has been applied. The paired-t trial can be applied for average value in utilizing and in utility of 10 fiscal indexs to prove the significance of the aspiration spread. Hence, the undermentioned nothing and alternate hypotheses ( sing two variables are dependent ) have been tested:
( The difference of the population mean is zero )
( The difference of the population mean is non zero )
The computed value of T is -1.515, which is greater than -2.262 [ from Student ‘s t Distribution Table with 0.05 significance degree, two tailed-test, and ( 10-1 ) = 9 df ] . Therefore, void hypothesis ( H0 ) has been accepted. Therefore, it can be said that two population agencies are equal, and it can be concluded that the usage and utility of the fiscal accounting indexs are the same. In other words, the aspiration spread has no statistically important difference.
4.3 Management Accounting Practices
Overall most of the investigated houses extremely measure unit cost of merchandises and services on a regular basis ( average = 3.07 ) . Furthermore, unit cost of merchandises and services include direct stuff, direct labour, and fabricating operating expense. It might be concluded that most companies measure their merchandises and services costs based on full costing. Similar to the survey of Haldma and Laats ( 2002 ) , Szychta ( 2002 ) , and Drury and Tayles ( 1995 ) , they claimed that full costing are widely used in assorted companies since the companies would wish to be ensured that all costs are included in merchandises and services costs. Besides the degree of utilizing activity based costing ( ABC ) to apportion operating expenses to merchandises and services are comparatively high ( average = 2.91 ) .
Among the surveyed endeavors, there are 26 endeavors which indicate that they do non cognize whether ABC is applied and is widely used in their companies. It might be inferred from the study that in instance SMEs would wish to utilize ABC ; hence, they need accounting forces who have higher cognition and skill together with efficient and effectual accounting system to manage these affairs. It might non worthwhile for SMEs to put in this system. In term of one-year runing budgets readying, the companies extremely and on a regular basis fix the one-year budgets ( average = 3.01 ) which corresponds with utility of budgeting that most houses think it is utile. Furthermore, the analysis of discrepancy of existent public presentation compared to budget is an of import direction tool in the investigated companies ( average = 3.24 ) and most of them considered that discrepancy analysis is an of import direction tool for them in determination devising procedure ( average = 3.19 ) . Table 4.3.1 nowadayss the Use of Management Accounting Practices.
The computed value of t = 0.415 ; hence, void hypothesis ( H0 ) is accepted because the computed T ( t = 0.415 ) is lower than 1.796 ( from Student ‘s t Distribution Table with 0.05 significance degree, One-Tailed trial and 11 df ) . It can be concluded that the rank correlativity in the population is zero, or there is a no correlativity between the ranks in utilizing and in utility of Management Accounting Practices.
For all the Management Accounting Practices, the ideal agencies are expected to be 4 ( the highest rank ) . Therefore, following two types of difference or spread can be observed in table 4.3.2.
Gap to Ideal = ( Ideal Mean – Mean in Usefulness )
Aspiration Gap = ( Mean in Usefulness – Mean in Using )
One sample-t trial has been applied against the expected average value of 4 to look into the cogency of the “ spread to ideal ” . The consequence of T value = -28.289, which is lower than -2.179. [ From Student ‘s t Distribution Table with 0.05 significance degree, two tailed-test, and ( 13-1 ) = 12 df ] . Therefore, it can be concluded that the mean values in utility of the direction accounting patterns are significantly lower than the ideal mean. That means the spread to ideal is statistically important.
In order to look into the “ aspiration spread ” , paired-t trial has been applied. The paired-t trial can be applied for average value in utilizing and utility of 13 direction accounting patterns to prove the significance of the aspiration spread. Hence, the undermentioned nothing and alternate hypotheses ( sing two variables are dependent ) have been tested:
The computed value of T is 0, which is greater than -2.179 [ from Student ‘s t Distribution Table with 0.05 significance degree, two tailed-test, and ( 13-1 ) = 12 df ] . Therefore, void hypothesis ( H0 ) has been accepted. Therefore, it can be said that two population agencies are equal, and it can be concluded that the usage and utility of the direction accounting patterns are the same. In other words, the aspiration spread has no statistically important difference.
V. CONCLUSION
Economic activity in Cambodia is dominated by Small and Medium Enterprises ( SMEs ) , which are seen as playing a major function in economic growing and poorness decrease.
Small and Medium Enterprises ( SMEs ) in Cambodia face a weak legal and regulative environment which creates uncertainnesss and increases the hazard of making concern. These uncertainnesss and hazards result in high dealing costs and the high costs of making concern in general. That is one of the grounds why most of SMEs do non registered in the Ministry of Commerce. Besides these issues, SMEs still have other troubles which do non ease their concerns to run and run successfully such as missing the accounting and fiscal cognition.
Most of the SMEs in Cambodia, they ignored the usage and utility of fiscal and direction accounting even it is really important for the company, both internal and external usage, in assisting the enterprisers to be after and pull off their operation toward the companies ‘ ends.
By utilizing the questionnaire as the tool to look into the fiscal and direction accounting patterns in SMEs in Cambodia, the survey could be concluded as follows:
More than half of surveyed SMEs engage their ain staffs and use accounting package to cover with accounting information and fix one-year fiscal statements, largely Balance Sheet, Income Statement and Cash Flow. And monthly frequence is the most frequence where all the investigated SMEs prepare their fiscal statements approximately without proper shuting the history.
In the position of SMEs, they extremely use, as the first precedence, fiscal and direction accounting statistically to analyse the endeavor ‘s fiscal place and public presentation. Furthermore, non merely in utilizing it but it seems it is really utile for them every bit good comparing to the utility of fiscal and direction accounting in operative direction of the endeavor. Second, they use it for describing to the province organic structures. And fiscal and direction accounting are less concerned by most surveyed SMEs in utilizing it for turn outing the fiscal stableness and place to loaners and spouses severally.
Fiscal accounting informations produced for regulative intent is extremely utile non merely for internal determination devising but SMEs besides extremely makes an extended utilizations of its in determination devising and strategic planning every bit good. In add-on, SMEs is extremely effectual in utilizing fiscal information of other companies to better concern public presentation.
