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Financial Accounting as a Tool to Enhance Non-Government Organisations Performance: A Case Study of a Large NGO in Durban, South Africa

Author

Listed:
  • Jean Damascene Mvunabandi

    (School of Accounting, Economics and Finance, University of KwaZulu-Natal, University Road Westville, Bag X 5400, Durban 4000, South Africa.)

  • Charmaine Lathleiff

    (School of Accounting, Economics and Finance, University of KwaZulu-Natal, University Road Westville, Bag X 5400, Durban 4000, South Africa.)

  • Paul-Francois Muzindutsi

    (School of Accounting, Economics and Finance, University of KwaZulu-Natal, University Road Westville, Bag X 5400, Durban 4000, South Africa.)

Abstract

Numerous non-governmental organisations (NGOs) in South Africa and elsewhere do not have standardised financial accounting practices to follow in preparing their financial statements and it is not clear whether the International Financial Reporting Standards (IFRS) for Small and Medium-sized Entities (SMEs) can be used to enhance NGOs performance (Kaya et al., 2015). This article explored the applicability of financial accounting practices as a relevant tool to enhance NGO performance with particular reference to a large NGO in Durban, South Africa. A qualitative approach was employed and data was collected through the use of semi-structured interviews and conventional thematic and document analysis. Evidence from this study showed that despite adopting accounting and financial policy and procedures, the selected NGO finds it difficult to maximise its financial performance due to failure to fully comply with IFRS for SMEs in South Africa. This article provides necessary recommendations applicable to other similar NGOs globally.

Suggested Citation

  • Jean Damascene Mvunabandi & Charmaine Lathleiff & Paul-Francois Muzindutsi, 2022. "Financial Accounting as a Tool to Enhance Non-Government Organisations Performance: A Case Study of a Large NGO in Durban, South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 12(3), pages 10-17, May.
    • Handle: RePEc:eco:journ1:2022-03-2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial Accounting; Financial performance; IFRS; NGO; SMEs; ASB;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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