Open AccessCompliance Factors of Malaysian Private Entity Reporting Standard (MPERS) by Small Medium Enterprises (SMEs)
Author(s) -
Nurul Nazlia Jamil,
Nathasa Mazna Ramli,
Ainulashikin Marzuki,
Nurul Nadiah Ahmad
Publication year - 2021
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v12n3p149
Subject(s) - business , accounting , compliance (psychology) , context (archaeology) , position (finance) , sample (material) , affect (linguistics) , perception , small and medium sized enterprises , empirical evidence , marketing , finance , psychology , chromatography , social psychology , paleontology , philosophy , chemistry , communication , epistemology , neuroscience , biology
The study objectively reports the findings on a questionnaire survey when examining the factors affecting Malaysian Private Entity Reporting Standard (MPERS) compliance in Malaysia by small and medium enterprises (SMEs). The study is based on a professional accountant questionnaire survey involving a sample of 176 respondents who are currently involved in the implementation of MPERS. The result reveals that the main factors affecting the SMEs' compliance with MPERS were the legal limitations and requirements. The study also finds that the perception, size of entities, management and accounting skills of the external user, and consideration of costs and benefits, have little impact on MPERS compliance. Furthermore, the study contributes to the literature of the financial reporting standard for SMEs by providing empirical from Malaysia's local context that uses MPERS and how the theses affect reporting practices. To adopt the 'true and fair view' financial reporting standard when explaining the firm's financial performance and financial position, this study should be the interest of regulatory authority, standard setters, and owners of SMEs themselves.