Financial results vs. implementation of accounting practices

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Abstract

It is worth mentioning that the proper implementation of accounting practices provides a good opportunity for firms to compete in the market in order to offer qualitative products and services, which have affordable prices for consumers (Nugroho et al., 2022). The main purpose of this study is to overview the impacts of the implementation of accounting practices in some manufacturing companies in Albania. To carry out this study, questionnaires distributed to manufacturing companies in the cities of Durrës and Tirana were used. It was noticed from the study that the most important elements of the implementation practices focus on reducing costs and increasing profit. This applies to any firm, but the manufacturing companies surveyed in Albania are focused on the short-term spectrum and try to reduce any costs that do not bring immediate benefits. During the analysis, it was seen that the firms had implemented practices with reduced costs, such as their division into fixed, variable and additional costs. None of the manufacturing companies had used the regression method to have a forecast for the future and the activity-based costing (ABC) method was only known theoretically. This study aims to contribute to the literature and also the results have value for developing countries like Albania.

Keywords: Accounting Practice, Accounting Policies, Financial Performance, Manufacturing Firms

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G2, M41, M42

Received: 11.05.2022
Accepted: 10.04.2023
Published online: 12.04.2023

How to cite this paper: Hallunovi, A. (2023). Financial results vs. implementation of accounting practices. Journal of Governance & Regulation, 12(2), 19–26. https://doi.org/10.22495/jgrv12i2art2