Accounting policy disclosure: practice in South Africa
| dc.contributor.advisor | Britz, P. M. | |
| dc.contributor.advisor | Joubert, J. A. | |
| dc.contributor.author | Van Zyl, Haneke Alouise | |
| dc.date.accessioned | 2018-09-14T09:08:32Z | |
| dc.date.available | 2018-09-14T09:08:32Z | |
| dc.date.issued | 2017-09 | |
| dc.description.abstract | English: This study has been conducted against the background of the perceived decreasing usefulness of financial statements in the decision making process of users. The perceived decline being a result of the increasing volumes of disclosures in complete sets of financial statements that have been prepared in accordance with International Financial Reporting Standards (IFRS). The purpose of this study was to determine whether or not the increase in the volume of financial statement disclosures, and thus the decrease in the usefulness of financial statements in the decision making process of users, can be attributed to the inclusion of generic, boilerplate accounting policies, in the financial statement disclosures. This study attempted to contribute towards the debate on the reasons for the so-called “Disclosure Problem” that is deducting from the usefulness of financial statements and to provide potential solutions in addressing this issue. The literature review of this study addressed the following: 1) the history and development of the accounting process, a complete set of financial statements and financial statement disclosures; 2) the technical considerations with regards to accounting policy disclosures; 3) the perceived nature of accounting policy disclosures today and 4) the review project conducted by the Institute of Chartered Accountants of Scotland (ICAS) and the New Zealand Institute of Chartered Accountants (NZICA), per request of the International Accounting Standards Board (IASB), as well as the Disclosure Initiative being conducted by the IASB in response to the perceived Disclosure Problem. Following the literature review, a document analysis of the complete sets of annual consolidated financial statements of South African companies, listed on the JSE within the Consumer Goods sector with financial year ends of no earlier than 28 February 2015, was conducted. The document analysis commenced with the determination of the significance of disclosed accounting policies in relation to a complete set of annual financial statements. This was done in order to determine whether disclosed accounting policies constitute a financial statement component that is sufficiently significant to have a material impact on the volume of disclosures, included in complete sets of financial statements. After the determination of the significance of disclosed accounting policies, an in depth analysis of the nature of disclosed accounting policies of the companies in the population, was performed. This analysis had the purpose to determine whether the significant accounting policy disclosure component, that can notably influence the volume of financial disclosures, is deemed to be generic or specific in nature. Disclosed accounting policies deemed to be generic are seen as unnecessarily increasing the volume of financial statements disclosures and are thus a possible reason for the decreased usefulness of financial statements in the decision making process of users. From the literature review conducted, it was evident that there is a perceived decline in the usefulness of financial statements in the decision making process of users. This is attributable to the increasing volume of disclosures to the annual financial statements that is prepared in accordance with IFRS. The results from the empirical study indicated that: 1) disclosed accounting policies do constitute a component of the financial statements that can significantly influence the volume of disclosures thereto; and 2) disclosed accounting policies of the population tested, include a notable percentage of generic accounting policies. These generic accounting policies unnecessarily increase the volume of disclosures that in turn decrease the usefulness of financial statements in the decision making process of users. In addition to the conclusions reached from the literature review and the empirical study, recommendations for addressing the issue of inefficiencies in current disclosure practices are made. Recommendations for possible future research to be conducted in this field are also made. The study contributes to the debate regarding the “disclosure problem” and provides insights on and support to the projects, such as the Disclosure Initiative, that is currently being conducted by the IASB to address the issue on hand. | en_ZA |
| dc.description.abstract | Afrikaans: Hierdie studie is uitgevoer teen die agtergrond van die waarneembare afname in die bruikbaarheid van finansiële state in die besluitnemingsproses van gebruikers. Die waarneembare afname is as gevolg van die toenemende volume openbaarmaking in volledige stelle van finansiële state wat voorberei is ooreenkomstig Internasionale Finansiële Verslagdoeningstandaarde (IFRS). Die doel van hierdie studie was om te bepaal of die toename in die volume van finansiële staat openbaarmaking, en dus die waarneembare afname in die bruikbaarheid van finansiële state in die besluitnemingsproses van gebruikers, moontlik toeskryfbaar kan wees aan die insluiting van generiese, “boilerplate” rekeningkundige beleide in die finansiële staat openbaarmaking. Die studie poog om by te dra tot die redes vir die sogenaamde “Openbaarmakings Probleem” wat afbreuk maak aan die bruikbaarheid van finansiële state, asook om moontlike oplossings te verskaf om die probleem aan te spreek. Die literatuuroorsig van hierdie studie het die volgende aangespreek: 1) die geskiedenis en ontwikkeling van die rekeningkundige proses, ʼn volledige stel finansiële state en finansiële staat openbaarmaking; 2) die tegniese oorwegings ten opsigte van rekeningkundige beleid openbaarmaking; 3) die waarneembare aard van hedendaagse rekeningkundige beleid openbaarmaking en 4) die oorsigtelike projek wat gesamentlik uitgevoer is deur die Instituut van Geoktrooieerde Rekenmeesters van Skotland (ICAS) en die Nieu-Seelandse Instituut van Geoktrooieerde Rekenmeesters (NZICA), soos versoek deur die Internasionale Rekeningkundige Standaarde Raad (IASB) asook die Openbaarmakings Inisiatief (Disclosure Initiative) wat tans deur die IASB uitgevoer word in reaksie tot die waarneembare Openbaarmakings Probleem (Disclosure Problem). ʼn Dokument analise van die volledige stelle van jaarlikse gekonsolideerde finansiële state van Suid Afrikaanse maatskappye, genoteer op die JSE in die verbruikersgoedere sektor, met jaareindes nie vroeër as 28 Februarie 2015 nie, is na die literatuur oorsig uitgevoer. Die dokument analise het begin met die bepaling van die beduidendheid van geopenbaarde rekeningkundige beleide in verhouding tot ʼn volledige stel finansiële state. Dit is gedoen ten einde te bepaal of geopenbaarde rekeningkundige beleide ʼn finansiële staat komponent uitmaak wat beduidend genoeg is om ʼn wesenlike impak op die volume van openbaarmaking, wat in volledige stelle van finansiële state ingesluit is, te hê. Na die bepaling van die beduidendheid van geopenbaarde rekeningkundige beleide, is ʼn in-diepte ontleding van die aard van geopenbaarde rekeningkundige beleide van die maatskappye in die populasie uitgevoer. Hierdie ontleding het die doel gehad om te bepaal om die beduidende rekeningkundige beleid openbaarmaking, wat waarneembaar die volume van finansiële openbaarmaking kan beïnvloed, geag word generies of spesifiek van aard te wees. Geopenbaarde rekeningkundige beleide wat as generies beskou word, word geag om die volume van finansiële staat openbaarmaking onnodig te vermeerder en is dus ʼn moontlike rede vir die waarneembare afname in die bruikbaarheid van finansiële state in die besluitnemings proses van gebruikers. Van die literatuuroorsig wat uitgevoer is, was dit duidelik dat daar ʼn waarneembare afname is in die bruikbaarheid van finansiële state in die besluitnemings proses van gebruikers. Dit is toeskryfbaar aan die toenemende volumes van openbaarmaking tot die jaarlikse finansiële state wat voorberei word in ooreenstemming met IFRS. Die resultate van die empiriese studie het getoon dat: 1) geopenbaarde rekeningkundige beleide ʼn beduidende komponent van finansiële state uitmaak wat die volume van openbaarmaking beduidend kan beïnvloed; en 2) geopenbaarde rekeningkundige beleide van die populasie wat getoets is, ʼn noemenswaardige persentasie van generiese rekeningkundige beleide, wat die volume van openbaarmaking onnodig verhoog, insluit, wat op sy beurt die bruikbaarheid van finansiële state in die besluitnemings proses van gebruikers laat afneem. Bykomend tot die gevolgtrekkings, gemaak vanuit die literatuuroorsig en die empiriese studie, word aanbevelings gemaak, ten einde die probleem van oneffektiwiteite in die huidige openbaarmakingspraktyke, aan te spreek. Aanbevelings vir moontlike toekomstige navorsing wat in die veld uitgevoer kan word, word ook gemaak. Die studie dra by tot die debat rakende die “Openbaarmakings Probleem” en verskaf insigte tot, en ondersteun, die projekte soos die Openbaarmakings Inisiatief (Disclosure Initiative), wat tans deur die IASB uitgevoer word, om die probleem voorhande aan te spreek. | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11660/9293 | |
| dc.language.iso | en | en_ZA |
| dc.publisher | University of the Free State | en_ZA |
| dc.rights.holder | University of the Free State | en_ZA |
| dc.subject | Accounting policy disclosure | en_ZA |
| dc.subject | Financial reporting | en_ZA |
| dc.subject | IFRS | en_ZA |
| dc.subject | Boilerplate | en_ZA |
| dc.subject | Illustrative financial statements | en_ZA |
| dc.subject | Disclosure quality | en_ZA |
| dc.subject | Comparability | en_ZA |
| dc.subject | Benefits of IFRS | en_ZA |
| dc.subject | Uniform accounting policies | en_ZA |
| dc.subject | Dissertation (M.Acc. (Accountacy)--University of the Free State, 2017 | en_ZA |
| dc.title | Accounting policy disclosure: practice in South Africa | en_ZA |
| dc.type | Dissertation | en_ZA |