Accounting Information And Performance Of Small And Medium Enterprises In Makindye Division

ABSTRACT

information is critical to organizations' performance in today's highly competitive

environment. The Statement of Accounting Concepts 3, International Accounting Standard

Board (IASB) and Financial Accounting Standard Board (FASB, 1980) developed a

conceptual framework for financial reporting where relevance, reliability, understandability

and comparability are the qualitative characteristics that financial accounting information

should possess.

The study covered relevance, reliability, understandability and accuracy. There is a belief

that there is a relationship between these qualities and performance of small and medium size

enterprises.

This dissertation investigates the con-elation between quality of accounting information and

performance of small and medium enterprises. 150 paiiicipants from different categories of

selected small and medium enterprises (Slv!Es); with 120 (80%) usable responses received.

With the belief that there is a relationship between accounting information and the

performance of small and medium enterprises, individual qualitative characteristics

(relevance, accuracy, understandability, reliability) were tested with the performance.

From the findings of the study, it is recommended that for better decision making and

improved performance of small and medium enterprises, accounting information should be relevant, accurate, understandable and reliable.