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A review of the understanding of the functions and reliability of International Financial Reporting Systems applied by rural SMEs in KwaZulu Natal (KZN) will determine the level of knowledge and understanding in the use of financial management by rural entrepreneurs in KZN, in order to evaluate the functions reliability of financial reporting systems of rural SME in KZN. Mixed approaches of both qualitative and quantitative techniques were used to collect primary data from five rural villages in KwaZulu Natal. The results of the survey revealed that the majority of respondents do not follow proper international financial reporting international standards. They do, however, use traditional methods in recording their cash collections by using exercise books to keep daily records. Further research should aim to establish financial management training needs of rural SMEs in KZN. Financial management and financial reporting systems knowledge and understanding by rural entrepreneurs will be improved. The paper provides practical guidance on how to perform financial management activities and financial reports as applied in remote rural areas.

international journal of academic research in accounting, finance and management sciences

Functions and Reliability of International Financial Reporting Systems of Rural Smes in Kwazulu Natal: Knowledge and Understanding of Financial Management