Accounting standards and financial reporting small enterprise (Mukwano Group of Companies Uganda)

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Kampala International University: College of Economics and Management
The study will aimed at establishing the relationship between accounting standards and financial reporting in Mukwano Group of Companies. It was accompanied by the following objectives, to examine the relationship between accounting standards and financial reporting, to establish the procedures of setting accounting standards, and to find out the factors that inhibit the adoption of accounting standards in the financial reporting in Mukwano Group of Companies the study was explanatory and descriptive, designed. The study explored a population of 100 respondents out of which a sample size of 80 people was obtained using solven's formula. This study used primary data instrument to collect and publications by the same organization that collected them. Research instruments such as observation, interview and questionnaire were also used. The researcher made the following conclusions it will be established at accounting standards are rules primarily and intended to be founded in order to present consistent and favorable financial reports. Standards avoided to present consumption's management from checking unsuspecting investors. They provide guidelines of what to conclude in the financial reports and how it will be reported. It will be also established from the work of Zecharia Bolo of Moi University and Dr. Samuel Sejjaka that most small and medium enterprises do not prepare financial reports and in cases where some do; they fall short of generally accepted standards. Therefore small enterprises like Mukwano Group of Companies will adopt proper and better financial reporting practices like adopting accounting standards. Since it's a fact that small and medium enterprises make up the majority of business in Uganda the benefits will also extend to the economy as a provision of security and other services by the Mukwano Companies. Accounting standards if adopted as recommended by (ICPAU) by SMe's, will give formats on preparations of financial reports and the accounting documents to include in the final report. This will most likely prolong the continuity of SMEs and will go along away in removing the a aforementioned inadequacies in SMEs reporting and enable them acquire the much needed finance from financial institutions and hence better reporting. The researcher made the following recommendations, Mukwano Group of Companies should carry out a cost and benefit analysis to find out whether the benefit of preparing proper financial statements as defined by international accounting standards exceeds the costs, Mukwano Group of Companies' management should acquire more knowledge in business management and financial reporting. Going for training in preparation of financial reports and performance can do this from educational Centres like the small business Centre in Kampala International University, Mukwano Group of Companies' management should adopt accounting standards when preparing their financial statements; this practice will make their financial reports comparable and consistent.
A research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of the Bachelor's Degree in Business Administration of Kampala International University
Accounting standards, Financial reporting, Mukwano Group of Companies