Adoption of GAAP: An Insight into the Small & Medium Enterprises
This paper analyses the financial accounting practices that are adopted by SME’s, which are operating in Mumbai in the state of Maharashtra. The sample consists of 57 units consisting of, manufacturing firms, suppliers of various services and retail shops through administration of a structured questionnaire. The findings of the study says that most of the enterprises do not record each and every financial transaction and do not follow the accounting rules that are framed by the regulatory authorities. Thus, a further attempt was made to find out the reason for not recording the financial transactions. The findings reveal that the enterprises finds recording the transaction as a time consuming activity, which involves efforts and knowledge and the owners also lacks accounting education.