Economic and Management Sciences

Permanent URI for this community

http://hdl.handle.net/11660/1

Browse

Now showing 1 - 6 of 6

Open Access
Accounting ethics in the accounting profession: a sample stakeholder survey in Bloemfontein
(University of the Free State, 2015-11) Makhabane, Frank Thebe; Massyn, Liezel
Recent years have witnessed an increase in the emphasis on accountability and transparency in both private and public sectors, largely because of a need to optimize efficiencies and productivity. Accompanying this trend has been an increasing appreciation of the centrality of ethics in public life. A key profession in meeting these demands is the accounting profession. An often-understated aspect of the accounting profession that strives to ensure adherence to ethics by accounting professionals is accounting ethics, which is defined as an example of professional ethics and, in particular, the study and practice of moral values and judgments in the field of applied ethics as they apply to accountancy. Against this background and with a specific focus on Bloemfontein, this study sought answers from the following research question: (i) Why are accounting ethics important/critical to the accounting profession? To answer the above, the secondary objectives of the study were: (a) To identify the development of accounting ethics in accounting as a profession. (b) To assess the importance of accounting ethics in the accounting profession in Bloemfontein. (c) To evaluate the role of accounting ethics education in the accounting profession among stakeholders in Bloemfontein and thereafter map the range of these stakeholder perceptions. The research methods used was a quantitative approach through the use of questionnaires. Questionnaires were coded and analysed using the Statistical Package for the Social Sciences (SPSS) software. Results from questionnaire data show a high percentage of the sampled population being aware of accounting ethics and that they chose to be ethical in their business decisions. Further, the overwhelming majority (85%) of the sampled population indicated that ethics should be integral to all modules that form the basis of accountancy training. It is for this reason that the study recommends that (accounting) ethics should not be a stand-alone module or subject but one that is integrated vertically (in a succession of study years, i.e. first, second and third years of study as the case may be) and horizontally (in different modules/subjects in a particular year of study). Other recommendations of the study include continuous development and support in the form of workshops and other forms of in-service training and development programmes for accounting professionals and corporate leaders, aimed at engendering accounting ethics in the workplace and as an integral part of personal values. Additionally, these recommendations include professional bodies in the accounting profession that should enforce registration by accounting professionals so as to be in a position to enforce their codes of conduct. Another recommendation is that there is a need for close cooperation in all aspects of accountancy training (from curriculum design through to curriculum delivery) between educational institutions and professional and regulatory bodies in the accounting profession so as to guarantee organic development of training in alignment with the changing demands of the profession.
Open Access
Algemeen aanvaarde rekeningkundige praktyk vir niewinsgewende organisasies, met verwysing na die NG Kerk in die Vrystaat
(University of the Free State, 2006) Rossouw, Jacobus; Van Wyk, H. A.
English: Not-for-profit organisations, and thus the congregations and welfare organisations of the Dutch Reformed Church in the Free State, exhibit certain unique characteristics, different from businesses. In essence, the primary objective of not-for-profit organisations is not to realise a profit to be distributed to equity participants (e.g. shareholders), but to meet certain religious, cultural, social and other non-commercial needs of the community. Not-for-profit organisations’ need for relevant accounting standards in fact emanates from their unique characteristics. Owing to the nature of not-for-profit organisations, the users of their financial statements require information (financial and non-financial) which is different from the information required by users of financial statements of businesses. Financial reporting which makes it possible for the users of financial statements of not-for-profit organisations to assess the stewardship of the organisation’s management, is the central focus because management are accountable to the members of the organisation, and also especially to donors. Standards of Generally Accepted Accounting Practice (GAAP) are drawn up primarily for businesses, and specifically to enable users of financial statements of companies in the international capital markets, to make economic decisions. Given this fact, and the unique nature and characteristics of not-for-profit organisations, it follows that Standards of GAAP are neither relevant nor appropriate in the case of not-for-profit organisations. Standards of GAAP therefore cannot be applied indiscriminately to not-for-profit organisations, albeit that appropriate South African legislation (Nonprofit Organisations Act) probably requires compliance with Standards of GAAP. In the international accounting environment, attempts have been made to develop unique accounting standards for small- and medium-sized entities, while unique accounting standards have also been drawn up for government institutions on the basis of their unique accounting needs. The same approach should also be followed for not-for-profit organisations since their unique nature and characteristics also necessitate typical accounting standards. Where not-for-profit organisations do indeed attempt to apply Standards of GAAP, they nonetheless experience problems in this regard. Some of these problems derive from the theoretical irrelevance of Standards of GAAP, while other problems are of a more practical nature. The fundamental problem derives from the question whether the cash or the accrual basis is the most appropriate in the case of not-for-profit organisations. Moreover, “fund accounting” is typical of not-for-profit organisations; however, an accounting standard for treatment of “funds” does not exist. In addition, various problems are also experienced with the recognition of assets, impairments and depreciation of assets, because the definition of “assets” and the recognition criteria do not consider the unique nature of not-for-profit organisations. Various questions exist with respect to the recognitio n of receipts as income. The question in particular is whether donations received for a specific purpose, donations which may only be utilised in future periods, as well as capital donations, should be recorded as income, liabilities or directly as funds. Not-for-profit organisations also experience problems with the recognition of so-called “in natura” receipts, and other forms of income. Given the nature and characteristics of not-for-profit organisations, performance reporting is also problematic because the “profit figure” and other reported financial information often do not capture the real “performance” (i.e. the achievement of objectives) of not-for-profit organisations. Furthermore, certain terminologies in GAAP are also not applicable to not-for-profit organisations. In some countries, accounting standards have been developed and issued specifically for not-for-profit organisations. The standards issued by the United States of America , the United Kingdom, Canada and Australia have been analyse d and compared to establish appropriate accounting principles for not-for-profit organisations. Accounting practice, applied in the above-mentioned countries, was reviewed by means of empirical tests among congregations and welfare organisations of the Dutch Reformed Church in the Free State. Specific aspects that were addressed and which have led to proposals for typical standards of generally accepted accounting practice for not-for-profit organisations are the following: · Presentation of financial statements; · Reporting on the restrictions imposed by donors on the utilisation of funds; · Accounting in terms of a cash basis versus the accrual basis ; · Recognition and measurement of fixed assets and accompanying expenses, such as depreciation and impairments, as well as the recognition and measurement of inventory; · Recognition and measurement of income in general, and in particular, recognition of donations and contributions, “restricted donations received”, and donations “in natura”; · Performance reporting by not-for-profit organisations; and · Aspects related to fund accounting. The core recommendations derive from the position that existing and formal Standards of GAAP should be used as a basis, and these standards should be modified to deal with the typical accounting concerns that pertain to not-for-profit organisations. The accounting profession, not-for-profit organisations, and other stakeholders must take note of the irrelevance of GAAP for not-for-profit organisations, the accounting problems experienced in the context, as well as the need for, and the recommendations made with respect to typical accounting standards for not-for-profit organisations. Like some other countries, South Africa should also play an active role in developing accounting standards which are applicable and relevant to not-for-profit organisations.
Open Access
Business ethics in the accountancy profession: a South African perspective
(University of the Free State, 2013-01) Lubbe, Nandi; Lubbe, D. S.
English: For thousands of years, man has been searching for the meaning of life, especially through philosophy and religion. One of the most important aspects in this search is probably the distinction between what constitutes right (good) and wrong (bad). This has not been confined to the personal/philosophical/religious aspects of life, but has also spread to the business sphere and eventually developed into the academic field today known as business ethics. Probably not a single day passes without the media reporting on unethical behaviour in its various forms in South Africa. The recent Lonmin/Marikana strike and its aftermath has dominated the South African media during 2012 and has already largely been described as the most tragic episode in the history of post-apartheid South Africa. The Lonmin incident is a “classic case study” of unethical conduct which included, amongst others, participation in unlawful and unprotected strikes, excessive police brutality, intimidation of and violent action against workers who reported for duty, malicious damage to property, clashes between labour unions fighting for membership and control of the industry, and poor leadership. Of all the corporate collapses that shocked the business world, Enron and its then auditors, Arthur Andersen, was problably the most infamous and significant due to its widespread international spillover effect. Enron and other unethical economic scandals provide an indication of the gravity and extensive reach of business ethics in the world today. The accounting profession plays such an important role in the global economy that the prevelance of unethical business practices often leads to appeals for an investigation into the competence and ethical behaviour of these professionals, accompanied by a notion that the main cause of the wrongdoings may be traced back to inadequate prominence given to ethics education within the profession. One of the main challenges in presenting business ethics courses is to keep the subject pragmatic and practically applicable – which may be difficult, possibly due to the discipline’s development from philosophy. If the pragmatic and practical focus is not maintained, business ethics may result in a mere philosophical and theoretical course that has little to do with ethical challenges encountered in the real business world. This study consists of a literature compopnent and an empirical component. The fourfold aim of the literature study was to provide 1) an overview of the development of business ethics as a discipline; 2) the viewpoints and requirements of professional accountancy bodies regarding business ethics and business ethics education; 3) an overview of business ethics modules presented by certain South African universities; and 4) the broad theoretical background to the discipline. The empirical research component was conducted by means of a questionnaire. The aim was primarily to determine the insight of four groups of students in business ethics at the beginning of the course as compared to that at the end of the course to establish the possible impact of the course on the ethical reasoning abilitites and perceptions of students. The questionnaire was also developed to also take into account the major requirements of SAICA regarding business ethics courses. The opinions and perceptions of the four groups of students enabled the researcher to reach conclusions and make recommendations regarding the suitability of the current content of business ethics courses. The study is set out in 5 chapters. Chapter 1 provides the introduction to the study, sketching a few of the ethical dilemmas that the world is currently faced with as a means to illustrate the importance of business ethics as a discipline. This is followed by an overview and discussion of the viewpoints and requirements of professional accountancy bodies regarding business ethics and business ethics education as well as an overview of business ethics modules presented by certain South African universities. Chapter 3 provides an overview of the development of business ethics as a discipline followed by an analysis of the findings gathered from the questionnaire (chapter 4). The final chapter consists of the conclusions and recommendations for improvement of business ethics courses and further research possibilities.
Open Access
A critical analysis of managing change for the accounting cadre at the treasury department in Lesotho
(University of the Free State, 2014-11) Mosoeunyane, Tlali Zechariah; Jacobs, Danie
Abstract not available
Open Access
Performance of first-year accounting students: does time perspective matter?
(University of the Free State, 2013) Joubert, Hanli; Viljoen, Marianne; Schall, Robert
English: Academic failure of first-year accounting students is a national and international problem. Existing research is inconclusive regarding the causes for the failure and does not make provision for the possible influence of dominant time perspectives on performance in accounting. This article investigates whether time perspective has an effect on the performance of first-year accounting students. A quantitative non-experimental predictive multivariate design is used and confounding variables are taken into consideration. The results of the study indicate significant relationships between performance in first-year accounting and gender, age and a past-negative time perspective. The most significant result of this study is that a past-negative time perspective, together with an unfavourable psychosocial background, might have led to failure in first-year accounting. It is suggested that students with a negative time perspective be identified and encouraged to participate in support programmes at the university.
Open Access
Sectional title property in South Africa: an accounting and auditing perspective
(University of the Free State, 2013-01) Lubbe, Leandi; Lubbe, D. S.
English: This study was undertaken against the background of the current housing problem in South Africa. Sectional titles play an important role in addressing this challenge, which is a high priority problem in the country. Very little research has so far been done on the South African sectional title industry from an accounting and auditing perspective. Furthermore, legislation in this regard is often contradictory and confusing. In addition, pressure regarding costs such as audit fees and management fees from owners of sectional title units bring about unique challenges and problems for the industry. These aspects do, however, provide ample opportunity for research. The first main aim of this study was an overview of practical problems experienced from an accounting and auditing perspective regarding risks associated with sectional titles, auditing-specific problems relating to sectional title and accounting-specific problems relating to sectional title. The second, two-fold aim of the study was to find possible solutions to the above-mentioned problems and to make recommendations in this regard. The third aim of the study was to set industry benchmarks by way of analysis and interpretation of a sample of annual financial statements of sectional title schemes over a three year period. These benchmarks can be of assistance as an industry standard for owners, trustees, managing agents, auditors and accountants rendering a professional service within the sectional title industry. The literature review of this study covered three main aspects in respect of sectional title schemes, namely legal aspects relating to accounting and auditing matters of sectional title schemes, auditing and assurance aspects and accounting and reporting aspects. The literature review paved the way for a detailed analysis of the auditing and accounting aspects relating to the sample of body corporate financial statements and an empirical study performed on the sectional title industry in South Africa by way of interviewing a sample of role players in the industry. The results of the empirical study and data analysis revealed a great number of contradictory and confusing legal aspects as well as uncertainties in the industry. Various problems and concerns were addressed and practical recommendations were made of which the industry should take note. The empirical findings can also be used as a valuable basis for further research.

Browse

Browsing Economic and Management Sciences by Subject "Accounting"

Results Per Page

Sort Options