Chapter 4 dealt with the analysis of the two sets of questionnaires administered to the respondents. The results of each question were analysed, as summarised in Appendixes C and D and presented separately. The findings of this study are summarised below:
5.6.1 Background information
According to Figure 4.9, the results indicated that the preparers of financial statements in SMEs in the agricultural sector of Ghana are experienced in preparing accounts. Figure 4.10 also revealed that the majority of the respondents have an interest in agricultural accounting.
Responses to Question A6 from the regulatory bodies indicated that no special training, seminars and workshops are specifically organised for accountants working in SMEs in the agricultural sector of Ghana.
5.6.2 Farm profile
Figure 4.14 clearly indicated that the majority of the entities in the agricultural sector of Ghana are private companies. It was again indicated by figure 4.16 that the majority of the respondents had targeted the retail market for their farm produce. It was also depicted by figure 4.17 that SMEs in the agricultural sector of Ghana mainly depend on the rain-fed method for farming. The responses depicted by figure 4.18 indicated that the income approach is used as a valuation approach by most of the agricultural entities in the study. It was also revealed by the accountants and preparers of financial statements that the majority of the respondents (56.7%) use the accrual basis of accounting for agricultural produce whilst biological assets are mainly valued, using the fair value method.
5.6.3 Objectives in preparing financial statements
Both the statement of comprehensive income and the statement of financial position were ranked first as the most important components of financial statements whilst ranked second was the statement of cash flows. This finding indicates that both the statement of comprehensive income and the statement of financial position are the
most important components of financial statements. Notes and explanations provide
more information regarding the financial statements and therefore play a supporting role to the financial statements. It was also discovered that the loan requirement is the main reason for the preparation of financial statements. This finding is contrary to the assertion that shareholders’ satisfaction is the main reason for the preparation of financial statements.
5.6.4 Knowledge of IFRS
The analysis of the responses from the accountants and preparers of financial statements indicated that preparers of financial statements in SMEs in the agricultural sector of Ghana do not have excellent knowledge of IFRS. The analysis also indicated that IFRS 13 is complex and, thus, too difficult to enforce in the agricultural sector of Ghana. Again, it was indicated that fair value implementation challenges have resulted in a significantly better quality of financial reporting in Ghana. On the other hand, the regulatory bodies shared a similar opinion with the preparers of financial statements that IFRS 13 is complex; preparers of financial statements in SMEs in the agricultural sector of Ghana do not have excellent knowledge of IFRS; and fair value implementation challenges have resulted in a significantly better quality of financial reporting in Ghana.
5.6.5 Level of accounting education and training in Ghana
The analysis of the responses from the accountants and preparers of financial statements of SMEs in the agricultural sector of Ghana indicated that there is limited access to training materials, seminars and workshops for working professionals. The analysis depicted that there is a low level of public awareness by regulators and other stakeholders of IFRS. It was also discovered that academic education does not focus on IFRS. Moreover, the results showed that academic education in Ghana does not focus on agricultural accounting, whilst the respondents also indicated that there is insufficient training and education for accounting personnel toward the implementation of IFRS 13.
Notably, the analysis of the responses from the regulatory bodies resulted in the same assertions made by the accountants and preparers of financial statements to affirm that there is limited access to training materials, seminars and workshops; a low level of public awareness on IFRS; academic education does not focus on IFRS and agricultural accounting; whilst there is insufficient training and education for accounting personnel toward the implementation of IFRS 13. Responses from regulatory bodies, with regard to Question B4, revealed that lack of funds to ensure smooth implementation of IFRS 13; inadequate qualified personnel to organise training programmes for preparers of financial statements of SMEs in the agricultural sector; the scattered nature of SMEs in the agricultural sector; poor infrastructure development and lack of government support make the implementation of IFRS 13 difficult.
5.6.6 Economic challenges in respect of fair value implementation facing SMEs in the agricultural sector of Ghana
The analysis of the responses from the accountants and preparers of financial statements clearly indicated that lack of market information on the prices of biological assets, accessibility of principal market through middle traders and brokers, nonexistence of a principal market for agricultural produce, and frustration of the Ghanaian attitude of not doing things according to schedule are considered to be the most significant economic challenges with regard to fair value implementation difficulties facing SMEs in the agricultural sector of Ghana.
5.6.7 Existing laws on the implementation of IFRS 13/IAS 41 in the agricultural sector of Ghana
The analysis of the responses from regulatory bodies under this objective clearly depicted that high inflation erodes benefits of exchange rate gains from exports, lack of a methodological relationship between regulatory systems of the country, lack of a methodological relationship between existing local laws and IFRS, the absence of the involvement of regulatory bodies, lack of adequately trained human resources, high IFRS enforcement costs, and high IFRS implementation costs are considered to be
the most significant effects of existing laws on the implementation of IFRS 13/IAS 41 in the agricultural sector of Ghana.
The analysis of the responses from the accountants and preparers of financial statements clearly confirmed that the lack of adequately trained human resources, high IFRS enforcement costs, and high IFRS implementation costs make the implementation of IFRS 13 Fair Value Measurement difficult.