Abstract
We examine the financial reporting practices of small privately held businesses that are not subject to SEC regulation. Specifically, we determine the factors associated with the production and use of financial statements for firms that have discretion in the preparation of financial statements and do not face the demands of public equity markets.
In addition, for firms that prepare financial statements, we determine the factors associated with the sophistication of the financial statements in terms of whether the financials are compiled, reviewed, and/or audited by a professional accountant and whether the firm produces accrual-based financial statements.
Finally, we examine the potential benefits afforded firms producing financial statements, having audited financial statements, and having accrual-based financial statements. We find that firms with audited financial statements benefit in the form of greater access to credit and that firms with accrual-based financial statements benefit in the form of a lower cost of credit.
Mighty Solutions is an “A to Z” web development company always keeping its services up-to-date with the latest trends on the market, providing its customers all over the world with high-end-class and easily extensible internet products. Solutions we offer range from creating custom website designs to developing business applications of any complexity.
The company’s staff will help you to efficiently present your business on the Internet, develop a solution that would fully correspond to all your business needs and/or improve the existing system. Our guidelines combined with utmost accuracy while working with details have proved to be a perfect union which enables our highly proficient personnel provide our clients with technically efficient, reliable and affordable solutions.
We also provide financial reporting and anaysis.
|
