title: Towards the development of a financial reporting framework for Sri Lankan SMEs

authors: Wijekoon Mudiyanselage, Himali Nisansala Wijekoon

subjects: IFRS for SMEs

abstract: The study has two objectives: to identify the users and their information needs of Sri Lankan small and medium enterprises (SMEs) financial information; and to examine the need for internationally comparable accounting information for Sri Lankan SMEs. The findings clarify issues with the current SME financial reporting standards and provide useful insights to assist in developing an appropriate reporting framework for Sri Lankan SMEs. An analysis of the literature reveals a paucity of empirical research on financial reporting by SMEs and little about the users and their financial information needs in the context of developing countries. No prior empirical research that examines the effects of adopting the International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) in Sri Lanka was found to exist. 
This thesis contributes to the literature, through applying a mixed methods approach. A questionnaire survey was used to collect data from 323 accountants and owners of SMEs. Quantitative data was analysed using a statistical package for social sciences. The responses are subdivided into three categories: small; medium and large SMEs to reveal differences according to size. Forty-one face-to-face semi-structured interviews were conducted with accountants and owners, bank lending officers, income tax officers, and representatives from government agencies, and the accounting standards setting authority of Sri Lanka. Follow-up interviews were conducted with the same group of interviewees to obtain their comments on a proposed financial reporting framework. Qualitative data was analysed using thematic analysis via the NVivo software. Institutional theory was adopted as the theoretical framework to study Sri Lanka’s decision to adopt the IFRS for SMEs. 
This decision was in response to institutional pressures rather than alleged benefits of internationally comparable financial information. Coercive institutional pressures are the most obvious which drove the adoption of IFRS for SMEs both at country and individual firm levels. SMEs do not see any need to provide internationally comparable accounting information due to their limited cross border activities. Many of the accounting topics included in the IFRS for SMEs appear to be irrelevant. The prime users of the financial information are owner-managers, banks, and the Inland Revenue Department. Government institutions are also users of financial information, particularly for the large SMEs. Users and their financial information needs vary according to the size of the SME. The results indicate that SME financial statements are unable to meet the needs of the main users. Tax oriented reporting, a lack of detail and a lack of up-to-date information are the main weakneses in SME financial statements. Further, users indicate the existing financial reporting framework, based on general purpose financial reporting, is neither cost effective nor relevant to the diverse SME sector in Sri Lanka. 
Based on the findings, a framework for Sri Lankan SME financial reporting is proposed, which includes four tiers. The proposed framework allows non-publicly accountable entities to determine the objective of their financial reporting and tailor their information to users’ needs in a cost effective manner. These findings have implications, and recommendations for policy makers, and standard setters charged with developing and implementing an appropriate financial reporting framework for SMEs. The government and the local standard setters should pay greater attention to SME financial reporting and take steps to make it credible, relevant, and appropriate to the needs of users. The findings provide useful insights for developing countries, particularly the Asian countries where adoption of IFRS for SMEs is being considered.

text: Towards the development of a financial reporting framework for Sri Lankan SMEs The study has two objectives: to identify the users and their information needs of Sri Lankan small and medium enterprises (SMEs) financial information; and to examine the need for internationally comparable accounting information for Sri Lankan SMEs. The findings clarify issues with the current SME financial reporting standards and provide useful insights to assist in developing an appropriate reporting framework for Sri Lankan SMEs. An analysis of the literature reveals a paucity of empirical research on financial reporting by SMEs and little about the users and their financial information needs in the context of developing countries. No prior empirical research that examines the effects of adopting the International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) in Sri Lanka was found to exist. 
This thesis contributes to the literature, through applying a mixed methods approach. A questionnaire survey was used to collect data from 323 accountants and owners of SMEs. Quantitative data was analysed using a statistical package for social sciences. The responses are subdivided into three categories: small; medium and large SMEs to reveal differences according to size. Forty-one face-to-face semi-structured interviews were conducted with accountants and owners, bank lending officers, income tax officers, and representatives from government agencies, and the accounting standards setting authority of Sri Lanka. Follow-up interviews were conducted with the same group of interviewees to obtain their comments on a proposed financial reporting framework. Qualitative data was analysed using thematic analysis via the NVivo software. Institutional theory was adopted as the theoretical framework to study Sri Lanka’s decision to adopt the IFRS for SMEs. 
This decision was in response to institutional pressures rather than alleged benefits of internationally comparable financial information. Coercive institutional pressures are the most obvious which drove the adoption of IFRS for SMEs both at country and individual firm levels. SMEs do not see any need to provide internationally comparable accounting information due to their limited cross border activities. Many of the accounting topics included in the IFRS for SMEs appear to be irrelevant. The prime users of the financial information are owner-managers, banks, and the Inland Revenue Department. Government institutions are also users of financial information, particularly for the large SMEs. Users and their financial information needs vary according to the size of the SME. The results indicate that SME financial statements are unable to meet the needs of the main users. Tax oriented reporting, a lack of detail and a lack of up-to-date information are the main weakneses in SME financial statements. Further, users indicate the existing financial reporting framework, based on general purpose financial reporting, is neither cost effective nor relevant to the diverse SME sector in Sri Lanka. 
Based on the findings, a framework for Sri Lankan SME financial reporting is proposed, which includes four tiers. The proposed framework allows non-publicly accountable entities to determine the objective of their financial reporting and tailor their information to users’ needs in a cost effective manner. These findings have implications, and recommendations for policy makers, and standard setters charged with developing and implementing an appropriate financial reporting framework for SMEs. The government and the local standard setters should pay greater attention to SME financial reporting and take steps to make it credible, relevant, and appropriate to the needs of users. The findings provide useful insights for developing countries, particularly the Asian countries where adoption of IFRS for SMEs is being considered.

year: 2018

title: Mechanical performance of Kraft fibre reinforced polypropylene composites: Influence of fibre length, fibre beating and hygrothermal ageing

authors: Pickering, Kim L.

subjects: A. Natural fibre composites

abstract: This paper describes the influence of fibre length, fibre beating and hygrothermal ageing on tensile strength (TS), Young’s modulus (YM), failure strain (FS) and impact strength (IS) of Kraft fibre reinforced polypropylene (PP) composites. TS, YM and IS of composites were found to decrease and FS increased with decreasing fibre length. Modest levels of fibre beating increased the TS of composites, which is believed to be due to improved interfacial bonding. During hygrothermal ageing, the diffusion coefficient increased with increased ageing temperature. Composites without coupling agent showed higher water uptake and diffusion coefficient than those with coupling agent. TS and YM were found to decrease for hygrothermal ageing due to fibre damage and reduced fibre matrix interfacial bonding, whilst FS and IS were found to increase due to the plasticizing effect of water.

text: Mechanical performance of Kraft fibre reinforced polypropylene composites: Influence of fibre length, fibre beating and hygrothermal ageing This paper describes the influence of fibre length, fibre beating and hygrothermal ageing on tensile strength (TS), Young’s modulus (YM), failure strain (FS) and impact strength (IS) of Kraft fibre reinforced polypropylene (PP) composites. TS, YM and IS of composites were found to decrease and FS increased with decreasing fibre length. Modest levels of fibre beating increased the TS of composites, which is believed to be due to improved interfacial bonding. During hygrothermal ageing, the diffusion coefficient increased with increased ageing temperature. Composites without coupling agent showed higher water uptake and diffusion coefficient than those with coupling agent. TS and YM were found to decrease for hygrothermal ageing due to fibre damage and reduced fibre matrix interfacial bonding, whilst FS and IS were found to increase due to the plasticizing effect of water.

year: 2008

title: Studies on the conservation of waterlogged wood in New Zealand

authors: Wallace, Roderick Thomas

abstract: This thesis is a study of properties of certain New Zealand woods recovered from waterlogged environments. The woods are those which were commonly used by the pre-european Maori to make artefacts, and the properties are those which affect the way these artefacts can be conserved after they have been removed from wet archaeological sites.
The properties studied were (a) the species of wood used (b) the forms and shapes of the timbers (c) the densities (d) directional shrinkages, and (e) directional penetrabilities of each wood. The results of this research are intended to aid conservators to correctly treat the artefacts. 
The research began with studies of (a) New Zealand wet site archaeology, (b) the structure and properties of wood in general, and (c) the techniques used to conserve waterlogged wood worldwide.
This was followed by a survey of circa. 1000 wooden Maori artefacts from Museums involving the identification, by thin section microscopy, of wood species. 30 wood types from 22 tree species were found to have been widely used. A collection was made of samples of each type in different states of decay. 
Each sample was tested for density, directional shrinkage and directional penetrability.
The penetrability was measured by vacuum impregnation of water into wood blocks. Results were compared to those from sound oak (Quercus robur), a wood which has been studied intensively by conservators in Europe. 
Detailed summaries of the conservation properties of 26 wood types are given. This reveals that while some New Zealand woods are easy to conserve others provide considerable problems. The latter woods are all highly durable in wet sites, extremely dense, have high shrinkages and are highly impenetrable. These will require special types of treatment to avoid damage during conservation.

text: Studies on the conservation of waterlogged wood in New Zealand This thesis is a study of properties of certain New Zealand woods recovered from waterlogged environments. The woods are those which were commonly used by the pre-european Maori to make artefacts, and the properties are those which affect the way these artefacts can be conserved after they have been removed from wet archaeological sites.
The properties studied were (a) the species of wood used (b) the forms and shapes of the timbers (c) the densities (d) directional shrinkages, and (e) directional penetrabilities of each wood. The results of this research are intended to aid conservators to correctly treat the artefacts. 
The research began with studies of (a) New Zealand wet site archaeology, (b) the structure and properties of wood in general, and (c) the techniques used to conserve waterlogged wood worldwide.
This was followed by a survey of circa. 1000 wooden Maori artefacts from Museums involving the identification, by thin section microscopy, of wood species. 30 wood types from 22 tree species were found to have been widely used. A collection was made of samples of each type in different states of decay. 
Each sample was tested for density, directional shrinkage and directional penetrability.
The penetrability was measured by vacuum impregnation of water into wood blocks. Results were compared to those from sound oak (Quercus robur), a wood which has been studied intensively by conservators in Europe. 
Detailed summaries of the conservation properties of 26 wood types are given. This reveals that while some New Zealand woods are easy to conserve others provide considerable problems. The latter woods are all highly durable in wet sites, extremely dense, have high shrinkages and are highly impenetrable. These will require special types of treatment to avoid damage during conservation.

year: 1985