Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2148887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Maher Jeriji Author-X-Name-First: Maher Author-X-Name-Last: Jeriji Author-Name: Ala Nasfi Author-X-Name-First: Ala Author-X-Name-Last: Nasfi Title: The value relevance of mandatory sustainability reporting assurance Abstract: Sustainability reporting assurance (SRA) ensures the credibility of sustainability information disclosed by companies. This practice has continued to evolve, particularly within regulatory frameworks. The SRA is widespread among the largest French and South African companies because of the requirements of GRENELLE II and KING III laws. The increased regulation of SRA and the increased rate of obtaining assurance motivated us to conduct our study. This study examines the impact of mandatory SRA on firm value. We run a fixed-effects ordinary least squares (OLS) panel model to test our hypothesis for the 2007–2018 period on a sample of 88 South African listed companies on the Johannesburg Stock Exchange (JSE) and 83 French listed companies on the SBF120 index. We use Tobin’s Q to measure firm value. Our results show a significant positive association between mandatory SRA and firm value. This finding implies that SRA regulations positively affect investors’ perceptions of firm performance, particularly firm value, for two reasons. First, mandatory SRA may strengthen firm legitimacy and establish a good reputation. Second, the adoption of SRA regulations plays an important role in reducing asymmetric information between various actors and solving agency problems between managers and shareholders. Regulators may be interested in the findings when considering current and future assurance requirements for sustainability reporting, and shareholders when considering SRA as an investment choice criterion. Journal: South African Journal of Accounting Research Pages: 122-138 Issue: 2 Volume: 37 Year: 2023 Month: 05 X-DOI: 10.1080/10291954.2022.2148887 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2148887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:2:p:122-138 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2008610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ramishka Nardhamuni Author-X-Name-First: Ramishka Author-X-Name-Last: Nardhamuni Author-Name: Kayleigh Greenslade Author-X-Name-First: Kayleigh Author-X-Name-Last: Greenslade Author-Name: Wayne van Zijl Author-X-Name-First: Wayne Author-X-Name-Last: van Zijl Title: An analysis of the use of share-based payments by the JSE Top 100 companies Abstract: Limited research has been conducted on companies’ use of share-based payments in a South African context. Where research has been performed, the focus has been predominantly on shared-based payments as part of executive remuneration packages. This paper extends this research by investigating all uses of share-based payments by the Johannesburg Stock Exchange’s (JSE) Top 100 companies. A content analysis was used to capture the details of each scheme disclosed by the JSE Top 100 companies. This included at whom the scheme was aimed, the purpose of the scheme, the settlement type, the vesting period and conditions, and whether there had been any modifications or cancellations.Descriptive and inferential statistics were used to analyse the data. Results reflected that 93 of the 100 companies investigated made use of share-based payments. Seventy-four per cent of all instruments were equity-settled. The few cash-settled schemes found were primarily used by the Basic Materials and Financials sectors. The average vesting period for all instruments was approximately 4 years, with Black Economic Empowerment-aimed schemes having the longest vesting period at 10 years. Non-market performance conditions were most prevalent at 87% while only 27% included market conditions.Overall, the findings are in line with Agency Theory and prior papers. In addition, this paper found a significant number of modifications and cancellations of instruments. This may be because of poor economic conditions, where reduced economic activity and lower share prices result in share-based payments becoming unfavourable to holders. Journal: South African Journal of Accounting Research Pages: 85-105 Issue: 2 Volume: 37 Year: 2023 Month: 05 X-DOI: 10.1080/10291954.2021.2008610 File-URL: http://hdl.handle.net/10.1080/10291954.2021.2008610 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:2:p:85-105 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2172229_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Faeze Rezazade Author-X-Name-First: Faeze Author-X-Name-Last: Rezazade Author-Name: Susannah Minutillo Author-X-Name-First: Susannah Author-X-Name-Last: Minutillo Author-Name: Nirmal Patel Author-X-Name-First: Nirmal Author-X-Name-Last: Patel Title: Accounting outsourcing and its relationship with financial performance of SMEs: Manager and employee perspectives Abstract: There is a gap in the literature related to understanding the relationship between outsourcing of accounting functions and financial performance (productivity and cost efficiency) of SMEs. This study examines the relationship between accounting outsourcing and financial performance in terms of cost efficiency and profitability in SMEs operating in Greater Sydney, Australia. An online survey of employees and managers (N = 80) of Australian SMEs using snowball sampling assessed the demographics, accounting outsourcing, organisational profitability, and cost-effectiveness of these SMEs. Data were analysed using linear regression and correlation analyses. The empirical analysis revealed that the outsourcing of tax services was related to a better financial performance of SMEs in terms of both cost efficiency and profitability. The outsourcing of management accounting functions was beneficial to the productivity of SMEs, whereas the outsourcing of general accounting was not related to higher productivity. Collectively, the findings of this study will assist SMEs in identifying resource gaps and the reasons for turning to external accountancy services to close the gaps and improve their financial performance. Journal: South African Journal of Accounting Research Pages: 106-121 Issue: 2 Volume: 37 Year: 2023 Month: 05 X-DOI: 10.1080/10291954.2023.2172229 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2172229 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:2:p:106-121 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2119683_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Christoff Botha Author-X-Name-First: Christoff Author-X-Name-Last: Botha Author-Name: Cecileen Greeff Author-X-Name-First: Cecileen Author-X-Name-Last: Greeff Title: An investigation into the normal tax implications of fractional share rights in South Africa Abstract: A recent development in the financial service industry is the introduction of the fractional share right that allows a retail investor to invest in a fraction of a listed equity share. Fractional share right is not defined in the Income Tax Act No. 58 of 1962 (‘the Act’), nor has it been subject to scrutiny in South African courts. Uncertainty exists regarding the normal tax implications of fractional share rights in South Africa. This article investigated the possible normal tax implications of a fractional share right for a retail investor. The research followed a qualitative approach through the analysis of primary and secondary sources. The article established that a fractional share right is essentially a contract for difference, with a fraction of a listed equity share serving as the reference instrument. It was ascertained, based on a combination of the integration and bifurcation approaches, that a contract for difference in respect of a fractional share right constitutes a financial instrument for purposes of the Act. Due to the absence of specific provisions in the Act dealing with the normal taxation of financial instruments for retail investors, it was ascertained that the amounts stemming from the contract for difference in respect of a fractional share right may be taxed according to the general provisions of the Act – sections 1(1) and 11(a) of the Act. Journal: South African Journal of Accounting Research Pages: 139-159 Issue: 2 Volume: 37 Year: 2023 Month: 05 X-DOI: 10.1080/10291954.2022.2119683 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2119683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:2:p:139-159 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435066_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G D I Barr Author-X-Name-First: G D I Author-X-Name-Last: Barr Author-Name: L Sharp Author-X-Name-First: L Author-X-Name-Last: Sharp Title: The realignment of international stock markets after the 1987 crash, with special reference to the Johannesburg Stock Exchange Abstract: This paper investigates stock price associations between the world’s sixteen largest international markets in the period immediately before and after the 1987 market crash, as well as in a more recent post-crash period. The analysis suggests that the crash had the following effects on stock market interrelationships. Firstly, we find that international markets developed distinctly stronger links with one another following the crash and most particularly with the New York Stock Exchange (NYSE). Secondly, our analysis suggests that stock market interrelationships may be seen to follow a clear regional configuration, not only during the period around the crash, but also more generally. In particular, our analysis identifies four important regional stock market groups: emerging markets in East Asia-Oceania; established markets in Europe, and in North America; and the relatively independent markets in Tokyo, Brussels and Milan. Stock markets within a particular group exhibit definite common behaviour attributes. This observation suggests that the potential for the international diversification of equity portfolios has a distinct regional profile, corresponding closely with a small number of geographical areas. Thirdly, the Johannesburg Stock Exchange (JSE) followed emerging market behaviour very closely during the October 1987 crash, although more generally, the JSE’s behaviour appears to be dominated by the influence of the NYSE. Finally, we investigate the immediate vicinity of the 198? crash, and examine the role of the gold price as a mechanism which insulates the JSE from international financial disturbances. Journal: South African Journal of Accounting Research Pages: 1-13 Issue: 1 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435066 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435067_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: W A A Maguire Author-X-Name-First: W A A Author-X-Name-Last: Maguire Title: Voluntary reporting of financial targets: Motivation and share price reaction Abstract: This paper examines the impact on share prices on the first occasion on which firms voluntarily report financial targets; specifically target rate of return, target debt-equity ratio and target dividend payout ratio. By reference to estimation risk and signalling theories, the hypothesis is that this reporting will have a positive share price impact on average. The market model and two control groups are used in this event study, which involves thirty four cases of voluntary reporting by South African firms. The results indicate a positive average share price impact. This finding may have implications for corporate financial reporting strategy. Journal: South African Journal of Accounting Research Pages: 15-38 Issue: 1 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435067 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:1:p:15-38 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435068_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D J Bradfield Author-X-Name-First: D J Author-X-Name-Last: Bradfield Author-Name: C S Ardington Author-X-Name-First: C S Author-X-Name-Last: Ardington Title: On construction of index funds in South Africa Abstract: Index funds, an increasingly popular form of investment in the US and UK since the 1970s, have recently emerged in South Africa. This paper examines two methods of constructing index funds in the South African environment. These two methods, namely stratification and optimisation, are empirically tested on the JSE and the results are contrasted with studies conducted on other exchanges. The suitability of the various statistics employed to measure tracking ability is also considered. Journal: South African Journal of Accounting Research Pages: 39-55 Issue: 1 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435068 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:1:p:39-55 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435069_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Paul van Rensburg Author-X-Name-First: Paul Author-X-Name-Last: van Rensburg Title: Employing the prespecified variable approach to APT factor identification on the segmented Johannesburg Stock Exchange Abstract: Prior research has provided evidence that the return generating process on the Johannesburg Stock Exchange (JSE) is dichotomous in nature (Campbell, 1979; Gilbertson and Goldberg, 1981;Carter, 1983; Page, 1986, 1989; Venter, Bradfield and Bowie, 1992). More specifically, this prior work supports the contention that there exists a cleavage in the economic forces underlying returns on the mining and industrial sectors of the JSE.In this paper the implications are considered for financial researchers applying linear factor models (LFMs) to describe the return generating processes underlying both mining and industrial shares on the JSE. A factor analytic augmentation to LFMs using prespecified explanatory variables is motivated. This suggestion is applied to the LFM underlying the Ross (1976) APT and it is empirically examined to what extent the factor analytic augmentation contributes to explaining both the time series and cross section of JSE returns. Journal: South African Journal of Accounting Research Pages: 57-74 Issue: 1 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435069 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:1:p:57-74 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435070_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: W D Hamman Author-X-Name-First: W D Author-X-Name-Last: Hamman Author-Name: E V d M Smit Author-X-Name-First: E V d M Author-X-Name-Last: Smit Author-Name: A C Jordaan Author-X-Name-First: A C Author-X-Name-Last: Jordaan Title: On the distributions of cash flow ratios of listed South African industrial companies Abstract: This paper investigates the assumption of normality in the distribution of cash flow ratios of listed South African industrial companies over the period 1974 to 1993. Twenty eight cash flow ratios are defined and the distributions are investigated for the assumption of normality, usually assumed in parametric statistical procedures, both before and after outlier removal. The chi-square goodness-of-fit and the Kolmogorov-Smimov tests are used for this purpose. The tests indicate that the assumption of normality is consistently rejected on the industry level, both before and after outlier removal, and frequently rejected on the sectoral and yearly levels. Journal: South African Journal of Accounting Research Pages: 75-88 Issue: 1 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435070 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435070 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:1:p:75-88 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435071_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D C Bowie Author-X-Name-First: D C Author-X-Name-Last: Bowie Author-Name: D J Bradfield Author-X-Name-First: D J Author-X-Name-Last: Bradfield Title: Some evidence on the stability of beta coefficients on the JSE Abstract: Knowledge of beta stability is crucial for projections involving the use of beta coefficients, in particular, in the areas of project evaluation and portfolio design. This paper investigates the issue of beta stability on the JSE. The investigation reveals how spurious inferences on stability can be made if estimation techniques do not correct for thin trading. The findings reveal that the levels of stability are similar to that reported on UK and USA stock markets once the distortions caused by thin trading are removed. Further a particular phenomenon associated with beta instability, known as the regression tendency, was investigated. This phenomenon was found to be present on the JSE and it was demonstrated empirically how a Bayesian adjustment counteracts this regression bias. Journal: South African Journal of Accounting Research Pages: 1-20 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435071 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435071 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:1-20 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435072_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J Lord Author-X-Name-First: J Author-X-Name-Last: Lord Title: The impact of managerial accounting and control systems on employee participation programmes: an integrated causal model and path analysis Abstract: Empirical support for the causal direction of inter-relationships between employee participation, attitudes and performance was sought on a profitable South African mine. Of particular interest were the roles played by various elements of the Firm’s managerial accounting and control system in the effectiveness of the participation schemes.A path model of employee participation was developed, tested longitudinally, and found to possess considerable explanatory power. Arising from the empirical analysis of the data, a revised path model of employee participation was then developed. This amended model is presented and briefly discussed. Journal: South African Journal of Accounting Research Pages: 21-49 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435072 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:21-49 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435073_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S Davidson Author-X-Name-First: S Author-X-Name-Last: Davidson Title: Agency theory, insider ownership and corporate focus: some South African evidence Abstract: It is widely believed that unbundling will immediately add value to shareholders. This paper investigates the basis for this belief. It is contended that the benefits of unbundling are not based on the US experience of corporate refocussing. In the US, many conglomerates experienced a “diversification penalty”. When US conglomerates divested their businesses this “diversification penalty” was eliminated, to the immediate benefit of shareholders. This paper investigates whether a “diversification penalty” is present in South Africa. The results appear to indicate no such penalty. The paper also investigates the relationship between insider ownership and corporate diversification. The benefits from unbundling are not simply based on the elimination of diversification penalties, but on managements focus on core business and competencies. Journal: South African Journal of Accounting Research Pages: 51-68 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435073 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:51-68 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435074_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L J Stainbank Author-X-Name-First: L J Author-X-Name-Last: Stainbank Title: Value added reporting in South Africa: current disclosure patterns Abstract: The value added statement has become a recognised part of annual reports in South Africa despite the fact that no guidance has been provided to the preparers of the value added statement other than The corporate report (ICAEW, 1975) which was issued in the United Kingdom and a statement of recommended accounting practice issued by the Singapore Society of Accountants (1984).This article presents the results of a survey which examined the construction of value added statements produced by certain listed companies in South Africa to determine how the problems of reporting value added are being dealt with and whether any preferred treatments are emerging. Diversity in terminology, presentation and treatments were found which would suggest that value added statements are not useful as they are not derived from a systematically applied consistent model and that comparability is only possible within a company over time or within company groups.An interesting trend is the appearance of a cash value added statement which does not lend itself to as much diversity in preparation as it links to the cash flow statement. Journal: South African Journal of Accounting Research Pages: 69-91 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435074 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:69-91 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435075_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R C van den Honert Author-X-Name-First: R C Author-X-Name-Last: van den Honert Author-Name: G D I Barr Author-X-Name-First: G D I Author-X-Name-Last: Barr Title: Comments on “The use of statistical techniques in the interpretation and implementation of South African insider trading legislation” Abstract: In a recent paper Botha (1995) proposes the use of statistical techniques and models from modem finance to show that the abnormal returns on a firm’s share price in some window period immediately before a specific event was not merely a chance event, but rather that firm-specific information caused material share price changes during the window period. He suggests that this model can thus be used iu South African courts to enforce insider trading legislation. We identify two blemishes in Botha’s reasoning and model, which should be rigorously addressed and resolved before any claim can be made that the method could be practically implemented as a tool to identify’ insider trading. Journal: South African Journal of Accounting Research Pages: 95-100 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435075 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435075 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:95-100 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435076_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D Botha Author-X-Name-First: D Author-X-Name-Last: Botha Title: Reply: Comments on “The use of statistical techniques in the interpretation and implementation of South African insider trading legislation” Abstract: This is a response to critical comments by Van Der Honert & Barr (1997), reported in this volume, relating to an earlier paper (Botha 1995). Van Der Honert & Barr assert that two blemishes in the reasoning and the model need to be ‘...rigorously addressed and resolved’. This reply argues and submits that Van Der Honert & Ban have not only attributed an incorrect assumption to the reasoning in the original paper, but do not seem to have taken cognisance of a crucial study (Meulbrook 1992), cited in the original paper, the results of which form the basis of the actual stated assumption of the original paper. Furthermore, their comments in regard to some issues of evidence indicate a misplaced understanding of the functions, and practice and procedures of our criminal courts. Thus, the two aspects which form the basis of the criticism by Van Der Honert & Barr, are clearly not of such a nature that, in relation to the proposed event study technique, they would ‘ ...mitigate against it becoming a satisfactory tool in a court of law’, as Van Der Honert & Barr have attempted to claim. Journal: South African Journal of Accounting Research Pages: 101-109 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435076 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435076 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:101-109 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435321_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Ward Author-X-Name-First: M Author-X-Name-Last: Ward Title: Comments on the debate: “The use of statistical techniques in the interpretation and implementation of South African insider trading legislation” Abstract: This paper reviews the discussion and comment relating to Botha’s (1995) proposed methodology for identifying insider trading. It is suggested that a causal nexus between trading with private information and an expectation of material price movement is essential. Suggestions are also made on the statistical treatment of the event study data and on the length of the event window. Journal: South African Journal of Accounting Research Pages: 111-115 Issue: 2 Volume: 11 Year: 1997 Month: 1 X-DOI: 10.1080/10291954.1997.11435321 File-URL: http://hdl.handle.net/10.1080/10291954.1997.11435321 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:11:y:1997:i:2:p:111-115 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435077_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D J Bradfield Author-X-Name-First: D J Author-X-Name-Last: Bradfield Title: Measuring the selection and timing abilities of South African fund managers Abstract: This article reviews a model proposed by Bhattacharya and Pfleiderer (1983) and first implemented by Lee and Rhaman (1990) which allows the separation of the measurement of selection and timing skills of fund managers. It is the first model to analyse the error term to identify a fund manager’s forecasting ability and as such avoids many of the shortcomings of prior models. An empirical analysis of local Unit Trusts using the model reveals that no positive stock selection or timing ability was evident amongst the local fund managers. Journal: South African Journal of Accounting Research Pages: 1-13 Issue: 1 Volume: 12 Year: 1998 Month: 1 X-DOI: 10.1080/10291954.1998.11435077 File-URL: http://hdl.handle.net/10.1080/10291954.1998.11435077 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:12:y:1998:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435078_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: P van Rensburg Author-X-Name-First: P Author-X-Name-Last: van Rensburg Title: Unifying the factor analytic and prespecified variable approaches to APT factor identification on the Johannesburg Stock Exchange Abstract: This paper reviews recent empirical work concerning the number and macroeconomic nature of the priced Arbitrage Pricing Theory (APT) factors on the Johannesburg Stock Exchange (JSE). As a consolidation of prior factor analytic and prespecified variable findings, a brief empirical component is presented with the intention of distilling a simple graphic depiction of the ‘macroeconomic risk structure’ of the Johannesburg Stock Exchange over the period 1965–1995. Journal: South African Journal of Accounting Research Pages: 15-45 Issue: 1 Volume: 12 Year: 1998 Month: 1 X-DOI: 10.1080/10291954.1998.11435078 File-URL: http://hdl.handle.net/10.1080/10291954.1998.11435078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:12:y:1998:i:1:p:15-45 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435079_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: I Vally Author-X-Name-First: I Author-X-Name-Last: Vally Title: The domestic transfer pricing practices of large listed South African industrial companies Abstract: The three main objectives of a domestic transfer pricing system are: (1) the attainment of goal congruence, (2) the facilitation of fair divisional performance evaluation and (3) the promotion of divisional autonomy.The transfer pricing objective considered most important in practice by large listed South African industrial companies is the facilitation of fair divisional performance evaluation. Objectives relating to simplicity and ease of application are also rated more highly than goal congruence, which is somewhat surprising based on the review of current literature.The domestic transfer pricing methods used by large listed South African industrial companies are fairly evenly split between cost and non-cost-oriented methods. The most frequently used primary transfer pricing method is market price. The use of mathematical programming and economic marginal cost prices is practically non-existent. These findings are consistent with the findings of some recent overseas studies.Policies relating to the selection of the transfer pricing method, the purchase of intermediate goods and services and the settlement of transfer pricing disputes reflect some head office management involvement in the transfer price decision process in most cases.Three organisational variables appear to have a significant association with a firm’s choice of transfer pricing method. Firstly, companies with a low level of interdivisional trading use non-cost-oriented transfer pricing methods whereas companies with a high level of interdivisional trading use cost-oriented methods. Secondly, transfer pricing methods selected as a result of some head office management involvement tend to be cost-oriented whereas methods selected by the divisions themselves tend to be non-cost-oriented. Thirdly, cost-oriented methods tend to be used in companies in which transfer pricing disputes are normally settled by some form of head office intervention and non-cost oriented methods are used in those companies in which disputes are normally settled by the divisions themselves. Journal: South African Journal of Accounting Research Pages: 47-72 Issue: 1 Volume: 12 Year: 1998 Month: 1 X-DOI: 10.1080/10291954.1998.11435079 File-URL: http://hdl.handle.net/10.1080/10291954.1998.11435079 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:12:y:1998:i:1:p:47-72 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435080_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: N Garrod Author-X-Name-First: N Author-X-Name-Last: Garrod Title: Portfolio aspects of segment identification Abstract: Despite the enactment of accounting standards on segmental reporting around the globe, the question of segment identification still remains unresolved. The current debate between the FASB and IASC on whether a managerial or risk-return approach is most beneficial to users underscores the importance of the issue. In this paper a measure of firm diversification is developed which provides a clear and unambiguous measure of the potential incremental information content of segmental data over consolidated disclosure. The analysis shows how this measure can be utilised to guide decisions as to the most appropriate and informative categorisation of operational units into reportable segments for external users. Journal: South African Journal of Accounting Research Pages: 73-90 Issue: 1 Volume: 12 Year: 1998 Month: 1 X-DOI: 10.1080/10291954.1998.11435080 File-URL: http://hdl.handle.net/10.1080/10291954.1998.11435080 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:12:y:1998:i:1:p:73-90 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435081_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: P van Rensburg Author-X-Name-First: P Author-X-Name-Last: van Rensburg Author-Name: G Penn Author-X-Name-First: G Author-X-Name-Last: Penn Author-Name: M Haiden Author-X-Name-First: M Author-X-Name-Last: Haiden Title: A note on the effect of secondary school accounting study on university accounting performance Abstract: This study finds that taking accountancy as a matriculation subject in secondary school tends to improve a student’s final Accountancy I mark by more than can be attributed to chance. Nevertheless, prior accounting exposure explains less than 5% of the variation in first year results and the matriculation aggregate symbol is a relatively stronger predictor of Accounting I success. Students without secondary school exposure to accountancy who progress to write the Accounting II examination are found to significantly outperform their colleagues who have taken accountancy as a school subject. However, school accounting exposure and matriculation aggregate symbols together only explain 13% of the variation in second year performance. The major contributors to university success are those factors omitted from the analysis such as how well the student actually studies during his university career. Journal: South African Journal of Accounting Research Pages: 93-99 Issue: 1 Volume: 12 Year: 1998 Month: 1 X-DOI: 10.1080/10291954.1998.11435081 File-URL: http://hdl.handle.net/10.1080/10291954.1998.11435081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:12:y:1998:i:1:p:93-99 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435082_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G D I Barr Author-X-Name-First: G D I Author-X-Name-Last: Barr Author-Name: B S Kantor Author-X-Name-First: B S Author-X-Name-Last: Kantor Title: Price earnings ratios on the Johannesburg Stock Exchange - Are they a guide to value? Abstract: This paper tests whether there is an equilibrium relationship between prices and earnings on the Johannesburg Stock Exchange (JSE). Such a relationship would hold if the JSE Index and index earnings were cointegrated, A full explanation of the technique of cointegration is provided. It is shown that prices and earnings on the JSE are not cointegrated, which is aconsistent with similar results obtained for the New York Stock Exchange. The paper then offers a more general explanation of prices on the JSE to include, in addition to earnings, the influence of world markets and political and exchange rate risk, on the value of the JSE as represented by its Industrial and Financial Index. It is found that the variables of these models of the JSE are in fact cointegated. This means that there have been forces driving long term equilibrium values on the JSE. Movements away from such equilibrium values have represented market beating opportunities Current prices are thus not the best estimate of future prices, suggesting that the JSE cannot be regarded as an efficient market. Journal: South African Journal of Accounting Research Pages: 1-23 Issue: 1 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435082 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435083_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A Riahi-Belkaoui Author-X-Name-First: A Author-X-Name-Last: Riahi-Belkaoui Title: Communication Codes in Accounting Abstract: A selected set of accounting concepts was subjected to analysis using multidimensional scaling techniques to evaluate the different communication codes used by academics and professional in the accounting field. The results verified a socio-linguistic thesis that predicts that academics will use a different communication code from professionals in their accounting concept perception. Journal: South African Journal of Accounting Research Pages: 25-42 Issue: 1 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435083 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:1:p:25-42 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435084_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B Beale Author-X-Name-First: B Author-X-Name-Last: Beale Author-Name: H Davey Author-X-Name-First: H Author-X-Name-Last: Davey Author-Name: G Samkin Author-X-Name-First: G Author-X-Name-Last: Samkin Title: One comprehensive income statement: Do we need it? Abstract: There are two ways in which comprehensive income can be disclosed. This can be either in the form of a separate financial statement as required by South Africa’s AC 101 and the International Accounting Standards Committee’s IASI in addition to the traditional statements, or in an expanded income statement. By requiring the preparation of a separate statement of changes in equity, the Accounting Practices Committee (and the LASC) have accorded the new statement equal status to the traditional income statement.This article examines whether, in the New Zealand experience, users of financial statements support the single statement approach to reporting comprehensive income or whether the needs of users would be better served by two separate statements. The requirement in New’ Zealand, since 1994, to disclose comprehensive income in a separate statement has given users time to become familiar with the concept, enabling them to judge the usefulness of the additional statement approach and to consider the implications of a single integrated comprehensive statement.There is growing international support for reporting both traditional net income and comprehensive income in one comprehensive income statement. However before this can be achieved, the unresolved issues of definition and format need to be addressed. The authors conclude that to leave comprehensive income as a separate statement is to risk relegating it to the status of little more than an addendum which is barely noticed and most often poorly understood. Journal: South African Journal of Accounting Research Pages: 43-59 Issue: 1 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435084 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:1:p:43-59 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435085_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Graham Author-X-Name-First: M Author-X-Name-Last: Graham Title: The effect of STC on earnings retention Abstract: The objective of this study is to determine whether or not the introduction of STC has resulted in South African companies retaining a greater amount of their earnings than prior to the introduction of STC. A statistical analysis of retention rates over a six year period is presented. The analysis shows that the retention rates of South African companies have significantly increased over the period 1990 to 1995 and the study concludes that the introduction of STC has contributed to this increase. Journal: South African Journal of Accounting Research Pages: 63-75 Issue: 1 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435085 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435085 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:1:p:63-75 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435086_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J A Miller Author-X-Name-First: J A Author-X-Name-Last: Miller Title: Extraordinary items: Accounting and market risk Abstract: The market reaction to the recurrent reporting of extraordinary items was tested by calculating and comparing the betas for a portfolio of shares that reported extraordinary items in each of the five years 1990 through 1994 and a control portfolio that reported no extraordinary items over the same period. There was evidence of a loose interpretation of the accounting standard and of income smoothing in the ‘extraordinary items portfolio’ which had almost double the systematic risk, as measured by the beta coefficient of the two portfolios. Extraordinary items were found to be significant predictors of market betas in a multivariate analysis. Journal: South African Journal of Accounting Research Pages: 1-25 Issue: 2 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435086 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435086 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:2:p:1-25 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435087_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K R Jefferis Author-X-Name-First: K R Author-X-Name-Last: Jefferis Author-Name: C C Okeahalam Author-X-Name-First: C C Author-X-Name-Last: Okeahalam Title: International stock market linkages in Southern Africa Abstract: The paper examines linkages between stock markets in South Africa, Botswana and Zimbabwe, and between these markets and stock markets elsewhere in the world, specifically emerging markets in Latin America and Asia and developed markets in the USA and the UK, over the period 1989–96. The topic is of interest given apparent co-movements in global stock markets during the Asian financial crisis of 1997 and earlier during the Wall Street crash of 1987. By examining the extent to which Southern African markets are linked to each other and to other international markets the paper provides insight into the process of international financial integration and its implications for international investment strategies. Analysis is carried out using correlations of market returns (for short term linkages) and cointegration analysis of market indices (for long term linkages). The results show that in the short term the. South African market is closely related to international markets, particularly the UK and Asian markets. Botswana is related to the two other regional markets but not other emerging markets, while Zimbabwe shows little evidence of relationships with other markets. Longer term relationships are not clearly established. however, except between Botswana and South Africa. The results indicate that the process of integration between Southern African markets,’ and of those markets into the international financial system, is still at an early stage. Journal: South African Journal of Accounting Research Pages: 27-51 Issue: 2 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435087 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:2:p:27-51 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435088_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C J van Staden Author-X-Name-First: C J Author-X-Name-Last: van Staden Title: Aspects of the predictive and explanatory power of value added information in South Africa Abstract: In this paper the predictive and explanatory power of value added information was investigated with regards to three external indicators by doing statistical analysis on empirical data of South African listed companies. The analysis indicated that value added information did not have significant predictive and explanatory power additional to that of earnings for the three selected external indicators. It also showed that the high inter-correlation between value added and earnings prevented value added from being used in prediction models in combination with earnings. The predictive and explanatory power of value added information therefore seems to be limited. Journal: South African Journal of Accounting Research Pages: 53-75 Issue: 2 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435088 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:2:p:53-75 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435089_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R Alston Author-X-Name-First: R Author-X-Name-Last: Alston Author-Name: E Uliana Author-X-Name-First: E Author-X-Name-Last: Uliana Title: The Efficiency of rights on the JSE Abstract: As a result of Johannesburg Stock Exchange regulations, the majority of equity issues are by rights issue. The objective of this study is to establish whether the South African market for rights issues is efficient. Using the Black-Scholes model, theoretical rights pricing boundaries were tested, and actual rights prices compared to model prices. Dilution adjusted and unadjusted model prices were calculated using historical standard deviation and implied standard deviation measures of volatility. Results showed inefficiencies associated with the lower boundary condition. The results for daily and per issue pricing indicate significant overpricing. Additional findings are that the dilution adjustment is required and the implied standard deviation is a better measure of volatility than the historical standard deviation. Journal: South African Journal of Accounting Research Pages: 77-97 Issue: 2 Volume: 13 Year: 1999 Month: 1 X-DOI: 10.1080/10291954.1999.11435089 File-URL: http://hdl.handle.net/10.1080/10291954.1999.11435089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:13:y:1999:i:2:p:77-97 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435090_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Ward Author-X-Name-First: M Author-X-Name-Last: Ward Title: Factors influencing credit assessment Abstract: This study examines the perceptions of credit analysts on which factors determine credit risk. A sample drawn from the major international credit underwriters was used to rank a previously derived set of micro-economic variables in terms of their importance as predictors of credit risk and ultimately corporate failure. The study aimed at supplementing the existing empirical research into corporate failure, which has largely been based on the predictive power of financial ratios, with expert perceptions. The results showed that the respondents relied heavily on secondary type data; i.e. the fact that banks had already withdrawn facilities, or that there had been prior instances of fraud or insolvency. The respondent’s own assessment of the primary data was rated of lower importance.The relative importance of various criteria was also tested, using conjoint analysis. The analysis showed banking history and previous underwriting experience to be the most important assessment criteria, followed by the quality of management. The methodology also demonstrated the ability of conjoint analysis to identify respondents whose approach differed significantly from that of the group, and could therefore assist in identifying training needs amongst credit analysts. Journal: South African Journal of Accounting Research Pages: 1-19 Issue: 1 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11435090 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11435090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435091_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S Baker Author-X-Name-First: S Author-X-Name-Last: Baker Author-Name: G K Everingham Author-X-Name-First: G K Author-X-Name-Last: Everingham Title: Accounting for futures and options in terms of IASC proposals: practitioners’ views in South Africa Abstract: This paper outlines the development and nature of the International Accounting Standards Committee’s proposals in relation to financial instruments. It considers the applicability of the specific principles therein in relation to accounting for futures and options traded on the South African Futures Exchange (SAFEX).Using a questionnaire approach, views of preparers and users of financial statements were canvassed, in relation to the reliability of SAFEX prices, and the accounting treatment of gains and losses.Both users and preparers were agreed that speculative gains and losses should be included in income, whereas in relation to hedged transactions, the findings suggest a desire to follow the accounting treatment awarded to the underlying. Preparers were found to consider SAFEX pricing reliable, whereas no conclusion could be drawn from users in this respect. Journal: South African Journal of Accounting Research Pages: 21-34 Issue: 1 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11435091 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11435091 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:1:p:21-34 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435092_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A Riahi-Belkaoui Author-X-Name-First: A Author-X-Name-Last: Riahi-Belkaoui Title: Formal knowledge in accounting studies Abstract: This article draws on Pepper’s World Hypotheses to describe four different approaches to obtaining formal knowledge in accounting studies. These approaches are: formism, mechanism, contextualism, and organicism. Journal: South African Journal of Accounting Research Pages: 35-47 Issue: 1 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11435092 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11435092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:1:p:35-47 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435093_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G D I Barr Author-X-Name-First: G D I Author-X-Name-Last: Barr Author-Name: B S Kantor Author-X-Name-First: B S Author-X-Name-Last: Kantor Title: Adding market value to a holding company Abstract: The paper explains the forces that determine changes in the discount of Net Asset market value of the typical JSE listed holding company. It is demonstrated that a variety of events which will alter the discount automatically may have very little value to add for shareholders. Nevertheless the discount itself may reveal scepticism about the ability of the holding company to undertake value adding investments. Therefore unbundling may signal that the holding company is less likely to pursue such value destroying investments. If so the discount will narrow and the holding company will have added value for its shareholders. Journal: South African Journal of Accounting Research Pages: 49-64 Issue: 1 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11435093 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11435093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:1:p:49-64 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435094_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C de Villiers Author-X-Name-First: C Author-X-Name-Last: de Villiers Title: Social responsibility disclosure by South African industrial holding companies: a research note Abstract: The disclosure of social responsibility in the 1982, 1987, 1992 and 1997 annual reports of ten companies listed in the industrial holdings section of the Johannesburg Stock Exchange was analysed. Information on employee-related matters is disclosed most often, followed by community-related information and environment-related information. Descriptive statements (as opposed to monetary or quantitative non-monetary disclosures) predominate, as does good news (as opposed to bad news or neutral disclosures). Disclosures increased over the years, with a dramatic increase from 1992 to 1997. Journal: South African Journal of Accounting Research Pages: 65-73 Issue: 1 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11435094 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11435094 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:1:p:65-73 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461397_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: AD Hoc Reviewers Journal: South African Journal of Accounting Research Pages: i-i Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461397 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461397 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:i-i Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461398_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K Mashishi Author-X-Name-First: K Author-X-Name-Last: Mashishi Author-Name: E Rabin Author-X-Name-First: E Author-X-Name-Last: Rabin Title: A study of the approaches to learning, engagement with the learning context and conceptions of learning of a group of fourth year accounting students Abstract: Recent research into the quality of learning of accounting students has indicated that students lack requisite skills and competencies in a number of areas. Sharma (1997: 125) refers to the following inadequacies, amongst others, that researchers have identified: That students approach accounting as memorisation and that there are significant declines in students' ability to handle complex problems. Wolk and Cates (1994: 269) suggest that accounting students do not possess the ‘broad intellectual, communication and interpersonal skills to tackle and solve unstructured problems using innovative methods’. This observation is at odds with the university which values independent critical, analytical thinking. This study therefore investigates the approaches to learning of fourth year accounting students, and explores the manner in which students interact with the elements of the learning context (lectures and tutorials). The students' conceptions of accounting are identified. The results of the investigation into students' approaches to learning using Bigg's SPQ inventory, revealed that the majority of the participants adopt a surface approach when studying accounting. At the same time the research showed that most of the students in the sample did not prepare for lectures, focused mainly on note-taking during lectures, and used tutorials to gain an understanding of concepts and principles (and not to develop problem solving skills). In addition, most of the students had a narrower conception of accounting than that promoted by the department. The results suggest that if accounting educators aim to develop the kind of accountants that will be able to cope with the demands of the business world, educators need to utilise research on students learning at tertiary level to improve their own teaching and the quality of students learning Journal: South African Journal of Accounting Research Pages: 1-19 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461398 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461398 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:1-19 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461399_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: EG Kitindi Author-X-Name-First: EG Author-X-Name-Last: Kitindi Author-Name: DS Iwisi Author-X-Name-First: DS Author-X-Name-Last: Iwisi Author-Name: KV Mgaya Author-X-Name-First: KV Author-X-Name-Last: Mgaya Title: An analysis of problems encountered by auditors of small, medium and micro enterprises in Botswana Abstract: Auditing is acclaimed as lending credibility to financial statements of enterprises. However, small enterprises see little importance in maintaining proper books of accounts and preparing financial statements. The Republic of Botswana has committed itself to the promotion of small enterprises in Botswana. But, small enterprises are said to have characteristics that pose difficulties to auditors. This suggests auditors will become more involved with small enterprises as a result of the expected growth and expansion of small enterprises. This study sought to establish the characteristics of small enterprises in Botswana, problems small enterprise auditors in Botswana face, frequency of occurrence of the problems, and their impact on auditing.The findings suggest that characteristics of small enterprises in Botswana are the same as those of small enterprises in other countries. Most of twenty-seven problems suggested to auditors rarely occurred, or occurred only occasionally. However, these problems are significant, as they are considered to have an important effect on auditing. Journal: South African Journal of Accounting Research Pages: 21-40 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461399 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461399 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:21-40 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461400_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Shotter Author-X-Name-First: M Author-X-Name-Last: Shotter Author-Name: FJ de Hart Author-X-Name-First: FJ Author-X-Name-Last: de Hart Author-Name: GJ Plant Author-X-Name-First: GJ Author-X-Name-Last: Plant Author-Name: EM Louw Author-X-Name-First: EM Author-X-Name-Last: Louw Author-Name: AJ Pienaar Author-X-Name-First: AJ Author-X-Name-Last: Pienaar Title: The relevance of management accounting education at South African tertiary institutions Abstract: This study examines the extent of the gap between education and practice, in respect of management accounting in South Africa. The investigation is carried out by means of two surveys; the first among universities and technikons to determine what is taught by tertiary institutions and the second among consultants to ascertain what is being practised.It finds a significant overemphasis by education of simplistic mathematical models and quantitative techniques at the expense of strategic management accounting and performance measurement techniques.A literature study indicates that the relevance of the subject might be enhanced through closer co-operation between education and practice as well as multi- disciplinary research. A broader view, incorporating organisational and behavioural perspectives on management accounting, should be taken. Journal: South African Journal of Accounting Research Pages: 41-58 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461400 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461400 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:41-58 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461401_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: JZ Bloom Author-X-Name-First: JZ Author-X-Name-Last: Bloom Author-Name: IJ Lambrechts Author-X-Name-First: IJ Author-X-Name-Last: Lambrechts Author-Name: NJ le Roux Author-X-Name-First: NJ Author-X-Name-Last: le Roux Title: Patterns in financial performance indicators of capital and labour intensive enterprises during an upswing and a decline in the economic cycle Abstract: The objective of this paper is to investigate patterns in the behaviour of various financial performance indicators for capital intensive (CI) and labour intensive (LI) enterprises during an upswing (1987–1989) and a decline (1990–1992) phase of the economic cycle, as measured by the Gross Domestic Product.The nature of an enterprise's activities and the fluctuations which occur in the economic cycle are used to distinguish between patterns in the indicators relevant to the measurement of financial performance. This paper considers the influence of the economic cycle on financial performance in CI and LI enterprises. An analysis is conducted of 62 financial performance indicators in order to ascertain possible different patterns between CI and LI enterprises over two predetermined periods which represent an upswing and a decline in the economic cycle. Exploratory Data Analysis (EDA) is used to identify possible differences between groups of CI and LI enterprises during these phases of the economic cycle. The identified patterns obtained from the results of the EDA are applied to categories of financial performance indicators in order to determine possible trends between CI and LI enterprises as exhibited by the financial performance indicators' behaviour during an upswing and a decline period in the economic cycle. The majority of the patterns obtained from the analysis are to be expected. However, some patterns exhibited by the financial indicators were unexpected. These patterns need clarification.An analysis of the results obtained by means of median plots and notched box and whisker plots indicates that nine financial performance indicators included in the research show statistically significant differences between CI and LI enterprises during either an upswing, a decline or during both periods. The analysis further indicates that five performance measures (three cash flow, one profitability and one inflation-adjusted indicator) highlight differences between CI and LI enterprises for both the upswing and decline in the economic cycle. In addition, four cash flow indicators suggest statistically significant differences between CI and LI enterprises during an upswing or decline period.The results of this investigation can be used to make financial forecasts for various types of enterprises over different expected phases of the economic cycle. Journal: South African Journal of Accounting Research Pages: 59-90 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461401 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:59-90 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461402_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Publication Record to December 2000 Journal: South African Journal of Accounting Research Pages: 91-91 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461402 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461402 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:91a-91a Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461403_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Prize Winners Journal: South African Journal of Accounting Research Pages: 91-91 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461403 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:91b-91b Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461404_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Information for Authors Journal: South African Journal of Accounting Research Pages: 92-94 Issue: 2 Volume: 14 Year: 2000 Month: 1 X-DOI: 10.1080/10291954.2000.11461404 File-URL: http://hdl.handle.net/10.1080/10291954.2000.11461404 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:14:y:2000:i:2:p:92-94 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435095_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R Reeve Author-X-Name-First: R Author-X-Name-Last: Reeve Author-Name: H Holmes Author-X-Name-First: H Author-X-Name-Last: Holmes Author-Name: P Li Author-X-Name-First: P Author-X-Name-Last: Li Author-Name: C Patel Author-X-Name-First: C Author-X-Name-Last: Patel Title: Debiasing the curse of knowledge and audit judgement: Experience reconsidered Abstract: This study contributes to the research related to judgment biases in auditing by examining the extent to which relevant audit experience debiases (mitigates) the “curse of knowledge” (outcome knowledge bias} in audit judgements. Auditors, with a wide range of experience, from the Sydney, Australia, office of a Big 6 public accounting firm, participated in the Field experiment involving an internal control evaluation task. The results support the hypothesis that relevant audit experience debiases the curse of knowledge in audit judgments.The authors gratefully acknowledge the constructive comments from delegates at the 2000 Biennial International Conference of the Southern African Accounting Association, and from participants at a Macquarie University research seminar, on earlier drafts. Journal: South African Journal of Accounting Research Pages: 1-17 Issue: 1 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11435095 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11435095 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435096_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A Savage Author-X-Name-First: A Author-X-Name-Last: Savage Author-Name: E Gilbert Author-X-Name-First: E Author-X-Name-Last: Gilbert Author-Name: J Rowlands Author-X-Name-First: J Author-X-Name-Last: Rowlands Author-Name: A J Cataldo Author-X-Name-First: A J Author-X-Name-Last: Cataldo Title: Environmental disclosure in annual reports: A legitimacy theory perspective Abstract: In recent years, corporations have increasingly used their annual reports to voluntarily disclose information relating to their social actions, particularly those concerning the natural environment. The conventional accounting framework, with its emphasis on decision-usefulness, has largely proved unsatisfactory in explaining this practice, as have various economic theories. This paper uses a legitimacy theory framework to explain why companies engage in this type of voluntary reporting. This research contributes to the accounting literature by advancing legitimacy theory as a framework for examining environmental reporting and applying this in an effort to understand the environmental disclosure practices of two Canadian pulp and paper companies. Journal: South African Journal of Accounting Research Pages: 19-48 Issue: 1 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11435096 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11435096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:1:p:19-48 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435097_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Negash Author-X-Name-First: M Author-X-Name-Last: Negash Title: Uncertainty, cost of capital and financial disclosure: A review of the theory and some evidence Abstract: This paper contains a critical review of the uncertainty research, and reports on the relationship between corporate disclosure and the adverse selection component of the buy-sell (bid-ask) spread of stock prices. Order processing and holding costs will be decoupled from information component following Gloston’s definition of spread, and using the George, Kaul and Nimalendran model. Results indicate that there is some evidence of association between the level of disclosure through annual reports and the size of information asymmetry, but further tests for the putative association between the two variables do not show strong linearity. Journal: South African Journal of Accounting Research Pages: 49-76 Issue: 1 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11435097 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11435097 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:1:p:49-76 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435098_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D Bradfield Author-X-Name-First: D Author-X-Name-Last: Bradfield Author-Name: J Swartz Author-X-Name-First: J Author-X-Name-Last: Swartz Title: Recent evidence on the persistence of fund performance – A note Abstract: This note highlights recent evidence on the persistence of fund performance in South Africa, throwing new light on the 1985–1995 study conducted by Meyer (1997). Our analysis on the persistence of South African fund performance is based on the General Equity category of unit trusts over the period 1995-August 2001. Examining performance persistence across consecutive years, we found evidence of fund performance persistence. This latest evidence seems to be primarily driven by the consistently superior performance of some top performers (rather than persistent poor performers). It seems that there are managers who have significant skill, to the extent that they have systematically been able to outperform their peers. Interestingly this evidence is similar to evidence forthcoming from studies conducted in the USA.As a confirming exercise, we considered the impact of investing in historical top quartile performers, second quartile performers etc., rebalancing annually and accumulating returns during the subsequent year of "unseen" performance data. The results are indeed surprising and compelling. Contrary,cto popular local belief, selecting historical top quartile performers yielded vastly superior performance results to a wide range of alternate combinations. Interestingly the second best strategy was that of a passive peergoup benchmarking approach. Journal: South African Journal of Accounting Research Pages: 99-109 Issue: 1 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11435098 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11435098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:1:p:99-109 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461405_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: AD Hoc Reviewers Journal: South African Journal of Accounting Research Pages: i-i Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461405 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461405 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:i-i Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461406_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R Reeve Author-X-Name-First: R Author-X-Name-Last: Reeve Author-Name: H Holmes Author-X-Name-First: H Author-X-Name-Last: Holmes Author-Name: P Li Author-X-Name-First: P Author-X-Name-Last: Li Author-Name: C Patel Author-X-Name-First: C Author-X-Name-Last: Patel Title: Debiasing the curse of knowledge and audit judgement: Experience reconsidered Abstract: This study contributes to the research related to judgment biases in auditing by examining the extent to which relevant audit experience debiases (mitigates) the “curse of knowledge” (outcome knowledge bias) in audit judgements. Auditors, with a wide range of experience, from the Sydney, Australia, office of a Big 6 public accounting firm, participated in the field experiment involving an internal control evaluation task. The results support the hypothesis that relevant audit experience debiases the curse of knowledge in audit judgments.The authors gratefully acknowledge the constructive comments from delegates at the 2000 Biennial International Conference of the Southern African Accounting Association, and from participants at a Macquarie University research seminar, on earlier drafts. Journal: South African Journal of Accounting Research Pages: 1-17 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461406 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461406 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:1-17 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461407_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A Savage Author-X-Name-First: A Author-X-Name-Last: Savage Author-Name: E Gilbert Author-X-Name-First: E Author-X-Name-Last: Gilbert Author-Name: J Rowlands Author-X-Name-First: J Author-X-Name-Last: Rowlands Author-Name: AJ Cataldo Author-X-Name-First: AJ Author-X-Name-Last: Cataldo Title: Environmental disclosure in annual reports: A legitimacy theory perspective Abstract: In recent years, corporations have increasingly used their annual reports to voluntarily disclose information relating to their social actions, particularly those concerning the natural environment. The conventional accounting framework, with its emphasis on decision-usefulness, has largely proved unsatisfactory in explaining this practice, as have various economic theories. This paper uses a legitimacy theory framework to explain why companies engage in this type of voluntary reporting. This research contributes to the accounting literature by advancing legitimacy theory as a framework for examining environmental reporting and applying this in an effort to understand the environmental disclosure practices of two Canadian pulp and paper companies.This paper stems from the lead author's doctoral thesis at the University of Port Elizabeth. An earlier version of the paper was presented at the 1998 Annual Meeting of the American Accounting Association. We thank Nola Buhr, William Cenker, three anonymous reviewers, and research forum participants at Windsor University, Canada; Oakland University, USA; California State University—Bakersfield, USA; Gonzaga University, USA; Cleveland State University, USA; University of New Brunswick—Saint John, Canada; and University of Port Elizabeth, South Africa for their comments on earlier drafts. Journal: South African Journal of Accounting Research Pages: 19-48 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461407 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461407 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:19-48 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461408_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Negash Author-X-Name-First: M Author-X-Name-Last: Negash Title: Uncertainty, cost of capital and financial disclosure: A review of the theory and some evidence Abstract: This paper contains a critical review of the uncertainty research, and reports on the relationship between corporate disclosure and the adverse selection component of the buy-sell (bid-ask) spread of stock prices. Order processing and holding costs will be decoupled from information component following Gloston's definition of spread, and using the George, Kaul and Nimalendran model. Results indicate that there is some evidence of association between the level of disclosure through annual reports and the size of information asymmetry, but further tests for the putative association between the two variables do not show strong linearity.The earlier versions of this paper were delivered at the July 2000 Biennial Congress of the Southern African Accounting Association and at the 8, h Annual Conference of the Southern African Finance Association. Valuable comments were received from the participants of those conferences. I am also grateful to Leon Brummer, Willie Hamman, David Fryer, Vanessa Sam and Jenny Doke for supplying data and helping me with the computer. Journal: South African Journal of Accounting Research Pages: 49-76 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461408 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461408 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:49-76 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461409_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: DW Taylor Author-X-Name-First: DW Author-X-Name-Last: Taylor Author-Name: T Soobaroyen Author-X-Name-First: T Author-X-Name-Last: Soobaroyen Author-Name: C Ah-Hen Author-X-Name-First: C Author-X-Name-Last: Ah-Hen Title: CEO's use of financial and non-financial performance measures: Manufacturing companies in Mauritius and Australia compared Abstract: It is contended in a body of management accounting literature that financial performance measures are being rendered less relevant than non-financial measures in the management of companies. Such a management trend towards non-financial performance measures is particularly applicable to manufacturing companies due to the prevalence of technological change and customer-focused strategies. This crosscountry empirical study ranks and categorizes financial and non-financial measures used by CEOs of manufacturing companies in a developed country, Australia, and a developing country, Mauritius. It also gives evidence of contingency and agency factors influencing the relative reliance of CEOs on such measurement categories. The analysis is confined to 24 quantitative measures (12 financial and 12 non- financial). Contingency and agency theories are invoked to consider the impact of production technology, perceived environmental uncertainty and information asymmetry on the CEOs' extent of use of financial and non-financial performance measures. Through data from a questionnaire survey of CEOs, drawn from Australian and Mauritian manufacturing companies, results reveal considerable differences between the countries in CEO's reliance on financial versus non- financial measures. Taking the combine countries' sample, factor analysis of CEO's usage patterns results in five categories of measures. Hypotheses about the impact of contingency and agency factors on these measurement categories are tested. These tests indicate that the extent of use of performance measurement categories by CEOs is driven to some extent by environmental uncertainty and technological change, but not by internal information asymmetry. Journal: South African Journal of Accounting Research Pages: 77-97 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461409 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:77-97 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461410_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D Bradfield Author-X-Name-First: D Author-X-Name-Last: Bradfield Author-Name: J Swartz Author-X-Name-First: J Author-X-Name-Last: Swartz Title: Recent evidence on the persistence of fund performance—A note Abstract: This note highlights recent evidence on the persistence of fund performance in South Africa, throwing new light on the 1985–1995 study conducted by Meyer (1997). Our analysis on the persistence of South African fund performance is based on the General Equity category of unit trusts over the period 1995-August 2001. Examining performance persistence across consecutive years, we found evidence of fund performance persistence. This latest evidence seems to be primarily driven by the consistently superior performance of some top performers (rather than persistent poor performers). It seems that there are managers who have significant skill, to the extent that they have systematically been able to outperform their peers. Interestingly this evidence is similar to evidence forthcoming from studies conducted in the USA.As a confirming exercise, we considered the impact of investing in historical top quartile performers, second quartile performers etc., rebalancing annually and accumulating returns during the subsequent year of “unseen” performance data. The results are indeed surprising and compelling. Contrary to popular local belief, selecting historical top quartile performers yielded vastly superior performance results to a wide range of alternate combinations. Interestingly the second best strategy was that of a passive peergoup benchmarking approach. Journal: South African Journal of Accounting Research Pages: 99-109 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461410 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461410 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:99-109 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461411_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Publication Record to December 2001 Journal: South African Journal of Accounting Research Pages: 111-111 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461411 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461411 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:111a-111a Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461412_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Prize Winners Journal: South African Journal of Accounting Research Pages: 111-111 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461412 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461412 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:111b-111b Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11461413_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Information for Authors Journal: South African Journal of Accounting Research Pages: 112-114 Issue: 2 Volume: 15 Year: 2001 Month: 1 X-DOI: 10.1080/10291954.2001.11461413 File-URL: http://hdl.handle.net/10.1080/10291954.2001.11461413 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:15:y:2001:i:2:p:112-114 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435099_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B M Clayton Author-X-Name-First: B M Author-X-Name-Last: Clayton Author-Name: M R Hutchinson Author-X-Name-First: M R Author-X-Name-Last: Hutchinson Title: Organisational commitment of accountants in Australia and South Africa Abstract: This paper examines the independent variables of perceived environmental uncertainty (PEU) and the cultural beliefs of collectivism/individualism between two countries, Australia and South Africa. These countries were chosen because Australia is a stable democracy and South Africa an emerging democracy which is undergoing significant political, social and economic transformation. The purpose of this paper is to determine whether accountants’ commitment to an organization is associated with perceived environmental uncertainty, collectivism and nationality.The results of this study suggest that individuals’ organisational commitment is associated with nationality (South African and Australian) and that relationship is associated with their cultural beliefs (collectivism/individualism) and an environmental variable, perceived environmental uncertainty.This research is regarded as important in that multi-national organizations operating in different political and social environments may choose to use different means to ensure the maximum organisational commitment from their employees, in particular, those who are professional accountants. Journal: South African Journal of Accounting Research Pages: 1-17 Issue: 1 Volume: 16 Year: 2002 Month: 1 X-DOI: 10.1080/10291954.2002.11435099 File-URL: http://hdl.handle.net/10.1080/10291954.2002.11435099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:16:y:2002:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435100_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L. Stainbank Author-X-Name-First: L. Author-X-Name-Last: Stainbank Title: Employers’ and public accountants’ attitudes towards employee reporting in South Africa Abstract: Employee reporting has evolved as a form of reporting to meet the needs of the employees for information about the enterprise for which they work. This is a particularly pertinent topic in South Africa as a result of recent pronouncements which highlight the need to provide users other than shareholders with information and which emphasize the rights of employees.In South Africa, companies are producing employee reports although there is no guidance by any regulatory bodies as to the form and content of such reports. This paper reports the results of a study, which forms part of a wider investigation of the topic, focusing on the attitudes of South African employers and public accountants towards the desirability of employee reporting, its form and contents, and public accountant involvement with published employee reports.After analysis it was concluded that: (a)There is a need for employee reporting.(b)Although the average response provided support for a separate employee report issued annually as the most desirable form of employee reporting, employers preferred regular meetings as their most desired form of employee reporting.(c)Employers and public accountants are of the opinion that public accountant involvement with published employee reports is undesirable. Journal: South African Journal of Accounting Research Pages: 19-40 Issue: 1 Volume: 16 Year: 2002 Month: 1 X-DOI: 10.1080/10291954.2002.11435100 File-URL: http://hdl.handle.net/10.1080/10291954.2002.11435100 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:16:y:2002:i:1:p:19-40 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435101_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J. Hooks Author-X-Name-First: J. Author-X-Name-Last: Hooks Author-Name: H. Davey Author-X-Name-First: H. Author-X-Name-Last: Davey Author-Name: D. Coy Author-X-Name-First: D. Author-X-Name-Last: Coy Title: Researching in the middle ground Abstract: Scientific approaches to research produce one kind of knowledge and have tended to dominate accounting research, particularly research concerning disclosure and disclosure indices. Other research paradigms are equally important and generate other kinds of knowledge (Morgan, 1983). This paper describes a methodology used in the development and application of a disclosure index to measure the extent and quality of disclosure in a series of company annual reports. The research seeks to be descriptive, critical and then normative. The approach developed by the authors incorporates a number of the elements of the scientific approach and complements these with aspects of the naturalistic approach, using subjective processes and acknowledging the biases, values, knowledge and traditions of the researcher and the stakeholder groups. The methodology therefore sits to the right of the centre point identified by Laughlin (1995) as “middle-range” thinking. The authors describe how the methodology was used to develop a disclosure index to measure the quality of New Zealand electricity company annual reports. Journal: South African Journal of Accounting Research Pages: 41-57 Issue: 1 Volume: 16 Year: 2002 Month: 1 X-DOI: 10.1080/10291954.2002.11435101 File-URL: http://hdl.handle.net/10.1080/10291954.2002.11435101 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:16:y:2002:i:1:p:41-57 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435102_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J. Callaghan Author-X-Name-First: J. Author-X-Name-Last: Callaghan Author-Name: A. Savage Author-X-Name-First: A. Author-X-Name-Last: Savage Author-Name: E. Peacock Author-X-Name-First: E. Author-X-Name-Last: Peacock Title: Financial Information Systems: Teaching REA semantics within an Information Engineering framework Abstract: The purpose of this paper is to describe how the accounting REA model can be incorporated into the Information Engineering set of methodologies in the Accounting or Financial Information Systems classroom. We contrast the traditional Information Engineering approach with one that includes REA modeling. We argue that the REA model is an interaction model, and that its use enables accounting students to develop business information systems that more adequately depict business phenomena. We also advocate a hands-on approach to systems development by supplementing conceptual model building with actual systems building through the use of a systems development toolset that automatically generates both application and database programming code from the logical models developed by the students. Consequently, students can see how their abstractions have real-world consequences.A prior version of this paper was awarded first prize in the 1999 Sterling Software University Program IT Research Contest, and was the topic of the keynote address at the 5th Annual Sterling Software University Program Conference (1999) in Dallas, Texas. Revised versions of the paper were presented at the 2000 AIS Educator Conference in Denver, Colorado and the 2002 American Accounting Association Information Systems Mid-Year Conference in Orlando, Florida. Journal: South African Journal of Accounting Research Pages: 59-80 Issue: 1 Volume: 16 Year: 2002 Month: 1 X-DOI: 10.1080/10291954.2002.11435102 File-URL: http://hdl.handle.net/10.1080/10291954.2002.11435102 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:16:y:2002:i:1:p:59-80 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435103_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: N Garrod Author-X-Name-First: N Author-X-Name-Last: Garrod Author-Name: B Giner Author-X-Name-First: B Author-X-Name-Last: Giner Author-Name: M Larrán Author-X-Name-First: M Author-X-Name-Last: Larrán Title: The value relevance of earnings, operating cash flow and accruals: A study on UK data Abstract: The purpose of the work reported in this paper is to establish the value relevance of earnings, operating cash flows and accruals for UK companies. Innovations in this paper are threefold: the use of a valuation rather than a returns model to test value relevance; the prior that earnings and cash flow measure are complementary rather than competing measures of company performance; and the introduction of various economic contingencies or contextual factors, which are hypothesised to influence the valuation multipliers applied to earnings and their component variables. The results confirm the complementarity of earnings and cash flow for valuation purposes and that the valuation multipliers applied to the components of earnings do vary with specific company characteristics. Journal: South African Journal of Accounting Research Pages: 1-22 Issue: 1 Volume: 17 Year: 2003 Month: 1 X-DOI: 10.1080/10291954.2003.11435103 File-URL: http://hdl.handle.net/10.1080/10291954.2003.11435103 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:17:y:2003:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435104_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Negash Author-X-Name-First: M Author-X-Name-Last: Negash Title: Rethinking the reporting of intangibles Abstract: This paper deals with one of the central problems of financial reporting. Using a mix of qualitative-quantitative approach the paper extends the author’s previous work on intangibles. It attempts to represent the views of users and preparers of financial statements about the identification, valuation and reporting of intangibles. Based on the opinions of users and prepares of financial statements and the principle of indeterminacy, the paper proposes a radical shift from the current financial reporting practice and advocates for the introduction of a separate statement for intangibles. Journal: South African Journal of Accounting Research Pages: 23-40 Issue: 1 Volume: 17 Year: 2003 Month: 1 X-DOI: 10.1080/10291954.2003.11435104 File-URL: http://hdl.handle.net/10.1080/10291954.2003.11435104 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:17:y:2003:i:1:p:23-40 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435105_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: N J le Roux Author-X-Name-First: N J Author-X-Name-Last: le Roux Author-Name: S Gardner Author-X-Name-First: S Author-X-Name-Last: Gardner Author-Name: P Olivier Author-X-Name-First: P Author-X-Name-Last: Olivier Title: Biplots for displaying multidimensional financial performance data graphically Abstract: Invariably financial performance of an enterprise is not judged on a single criterion but is described in terms of various related financial performance indicators. Financial decision makers are thus typically confronted with multidimensional data. This paper demonstrates to financial managers several uses of the biplot for displaying multidimensional data graphically. It is shown that biplots not only serve in understanding multidimensional data better but also might reveal features of such data not perceptible by graphing each variable on its own.Two different types of biplots are discussed: One for describing variation in multidimensional data and the other for separating different groups optimally. The first of these types of biplots is applied to a data set originating in risk management and the second to a data set where, on the basis of various financial ratio indicators, the aim is to separate enterprises in danger of financial failure within a year from those not in such danger. In the latter example a distinction is also made between companies classified as manufacturing enterprises and those classified as trading enterprises. Journal: South African Journal of Accounting Research Pages: 41-64 Issue: 1 Volume: 17 Year: 2003 Month: 1 X-DOI: 10.1080/10291954.2003.11435105 File-URL: http://hdl.handle.net/10.1080/10291954.2003.11435105 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:17:y:2003:i:1:p:41-64 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435106_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J E Beeson Author-X-Name-First: J E Author-X-Name-Last: Beeson Author-Name: M M Sutherland Author-X-Name-First: M M Author-X-Name-Last: Sutherland Author-Name: J C Ford Author-X-Name-First: J C Author-X-Name-Last: Ford Title: The evaluation of the management of companies by stockmarket analysts and fund managers Abstract: The management of a company plays a critical role in determining whether a business will be able to produce superior returns to investors. Little research has however been undertaken to establish how fund managers and financial analysts assess management when making investment decisions. This exploratory study aimed to identify the main constructs underlying the assessment of management by investment analysts and fund managers.Following a literature review a survey was conducted using a judgement sample of 15 South African and London-based analysts and fund managers. In depth interviews were conducted with this sample using a pre-piloted set of questions and the results analysed using data mapping techniques and content analysis.The survey showed that an assessment of the management of a company plays an important part in investors’ decisions. The weighting given to an assessment of management over other factors was seen to vary according to the size of the company, the stage in its life cycle and the sector in which it operated. This study identified the main criteria against which management is judged. It also showed that the most common approach to incorporating a judgement on management into the assessment of a company was to adjust the results of financial models, resulting in a down-rating of the stock of companies perceived to be poorly managed in comparison to their peer group. Journal: South African Journal of Accounting Research Pages: 1-24 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435106 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435106 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435107_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A Riahi-Belkaoui Author-X-Name-First: A Author-X-Name-Last: Riahi-Belkaoui Title: Are you being fooled? Quality of earnings and quality of government Abstract: This study investigates empirically the impact of the quality of earnings of major listed firms on the quality of government in a large cross-section of countries. It evaluates government performance using measures of six dimensions of governance, namely, voice and accountability, political stability, government effectiveness, regulatory quality, rule of law and control of corruption. The quality of earnings used is a measure of earnings opacity. The findings show that countries that have a high level of earnings opacity exhibit inferior government performance. The results based on 34 countries persist after controlling separately for market performance, economic freedom, newspaper circulation and emerging vs. developed countries. The importance of the quality of earnings in explaining the variation in government performance across countries sheds light on the strong role of accounting in society. Journal: South African Journal of Accounting Research Pages: 25-41 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435107 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435107 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:25-41 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435108_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Steyn Author-X-Name-First: M Author-X-Name-Last: Steyn Title: Transfer pricing methods in the context of intangible property Abstract: The purpose of this study is to evaluate the suitability of existing acceptable transfer pricing methods and their application to international transactions between related parties involving intangible property, more specifically intellectual property that is legally protected. The application of the internationally accepted transfer pricing methodology, which is based on the application of the arm’s length standard to the transaction, necessitates the finding of suitable comparables between independent enterprises. However, the methods of determining an arm’s length value are being challenged as intangible property, which is often unique and for which no suitable comparables exist, increasingly migrates between tax jurisdictions. Consequently, the existing and accepted transfer pricing methods may not always be appropriate to establish an arm’s length value for intangible property migrations.The study established that the comparable uncontrolled price (CUP) method remains highly relevant as a method of determining an arm’s length transfer price for intellectual property transfers. Since the potential for finding suitable comparables in order to apply this method is very limited in the context of unique intellectual property, the less preferred transactional profit methods such as the transactional net margin method (TNMM) and the profit split method may be more relevant from a practical perspective. The key risk for tax authorities becomes apparent in this study, however, namely, that taxpayers may use these less reliable measures of the arm’s length standard purely for the sake of convenience and ease of application. The study therefore recommends that taxpayers should be required to provide documentary evidence that a search for suitable comparables to apply an appropriate traditional method such as CUP has been unsuccessful, in order to justify having recourse to the less accurate transactional profit methods. Journal: South African Journal of Accounting Research Pages: 43-64 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435108 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435108 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:43-64 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435109_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C Correia Author-X-Name-First: C Author-X-Name-Last: Correia Author-Name: E Uliana Author-X-Name-First: E Author-X-Name-Last: Uliana Title: Market segmentation and the cost of equity of companies listed on the Johannesburg Stock Exchange Abstract: The segmentation between the Resources/Mining and the Financial and Industrial sectors on the Johannesburg stock exchange and the relative historical dominance of the Mining sector in relation to other international markets poses questions about whether the All share data or the Financial and Industrial data should be used in determining the parameters for the Capital Asset Pricing Model. In this study we test whether the two sectors provide different results, examine those results for magnitude and pattern, and whether they are related to each other. We find that the results are different, the magnitude is material for decision-making, and they are related. These findings will enhance the ability of corporate management to apply judgement in calculating the cost of equity capital. Journal: South African Journal of Accounting Research Pages: 65-86 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435109 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435109 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:65-86 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435110_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K Sartorius Author-X-Name-First: K Author-X-Name-Last: Sartorius Author-Name: J Kirsten Author-X-Name-First: J Author-X-Name-Last: Kirsten Title: The cost efficiency of small farm inclusion in agribusiness supply chains Abstract: The inclusion of small-scale commercial farmers in South African agribusiness supply chains is a national priority and there is an urgent need for managerial accounting (MAS) inputs to successfully accomplish this objective. This paper explores ways that small farmers can be cost effectively incorporated in modern agricultural supply chains. A case study methodology is used to test the research questions. The results demonstrate that small-scale farmers can successfully compete with larger growers with respect to production and cost efficiency. The results also illustrate that small-scale farmers generate higher levels of transaction cost than medium and large scale suppliers. A series of proposals are then developed in order to reduce the transaction cost of small farm supply. In conclusion, small-scale farmers can be successfully incorporated in agribusiness supply chains but only if special measures are taken to reduce differential transaction cost. Journal: South African Journal of Accounting Research Pages: 87-113 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435110 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435110 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:87-113 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435111_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B W Steyn Author-X-Name-First: B W Author-X-Name-Last: Steyn Author-Name: W D Hamman Author-X-Name-First: W D Author-X-Name-Last: Hamman Title: The time series behaviour of net profit, cash flow from operating activities and accruals of South African listed industrial companies for the period December 1988 to November 2002 Abstract: Harmonising South African accounting methods with international trends led to basically all South African accounting statements being revised after December 1994. This resulted in changes in accounting policies and methods and, quite often, involved more conservative requirements than previously.A structural change like this change in accounting policies poses some difficulty for the financial analyst with regard to the use of time series analysis. This article examines whether there was a trend towards more conservative accounting methods in the data of South African listed industrial companies during the period December 1988 to November 2002.Test results indicated an increase in reporting conservatism, especially in the latter part of the 14-year period under review. Journal: South African Journal of Accounting Research Pages: 115-133 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435111 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435111 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:115-133 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435112_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R Oberholzer Author-X-Name-First: R Author-X-Name-Last: Oberholzer Author-Name: J S Wilcocks Author-X-Name-First: J S Author-X-Name-Last: Wilcocks Title: The effect on taxpayers of new tax legislation regarding foreign exchange transactions Abstract: Numerous problems have been encountered with the practical application of the new taxation legislation relating to foreign currency transactions. The purpose of this paper is to analyse the amendments relating to foreign exchange transactions and to illustrate, by using examples, the far reaching effect of these amendments on the taxpayer, as well as the effect on the financial statements for accounting purposes. The paper concentrates on the amendments to sections 25D and 24I (with specific reference to section 24I(11)) contained in the Second Revenue Laws Amendment Act (Act 74 of 2002) (promulgated on 13 December 2002) and the Revenue Laws Amendment Act (Act 45 of 2003) (promulgated on 22 December 2003). The paper continues to also illustrate the interaction and the effect of the Eighth Schedule on sections 25D and 24I. Journal: South African Journal of Accounting Research Pages: 135-170 Issue: 1 Volume: 18 Year: 2004 Month: 1 X-DOI: 10.1080/10291954.2004.11435112 File-URL: http://hdl.handle.net/10.1080/10291954.2004.11435112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:18:y:2004:i:1:p:135-170 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435113_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D A Warneke Author-X-Name-First: D A Author-X-Name-Last: Warneke Title: A Comparison of the General Anti-Avoidance Provisions in the Australian and South African Income Tax Acts With Reference to Whether or Not the South African Anti-Avoidance Provisions Would Have Been Applicable to the Facts of FCT v Spotless Services Limited Abstract: The decision of the Australian Courts in the case of FCT v Spotless Services Limited was cause for considerable concern among the ranks of the Australian tax fraternity. The decision hinged on an application of the general anti-avoidance provisions (contained in sections 177A-177G) of the Australian Income Tax Assessment Act. The purpose of this paper is to compare the general anti-avoidance provisions of the Australian and South African Income Tax Acts in order to ascertain whether or not, based on the facts of the case, a South African Tax Court would have come to a similar conclusion as that reached by the Australian Court. Journal: South African Journal of Accounting Research Pages: 91-102 Issue: 1 Volume: 19 Year: 2005 Month: 1 X-DOI: 10.1080/10291954.2005.11435113 File-URL: http://hdl.handle.net/10.1080/10291954.2005.11435113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:19:y:2005:i:1:p:91-102 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435114_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E Gilbert Author-X-Name-First: E Author-X-Name-Last: Gilbert Title: Capital budgeting: A case study analysis of the role of formal evaluation techniques in the decision making process Abstract: This paper furthers the understanding of capital budgeting by reviewing two individual capital investment decisions taken by manufacturing firms in South Africa. This study indicates that managers do not base their capital investment decisions on a comparison of the expected value of potential investment opportunities as recommended by theory. Rather they follow a multi-stage filtering process and reduce the list of projects by establishing the alignment with the firm’s strategic goals on a qualitative basis. Discounted cash flow project evaluation methods (among others) are then used to confirm that the selected projects are expected to achieve satisfactory levels of financial performance. This analysis promotes a better understanding of the unexpectedly limited use of discounted cash flow techniques by managers in capital investment decision making. Journal: South African Journal of Accounting Research Pages: 19-36 Issue: 1 Volume: 19 Year: 2005 Month: 1 X-DOI: 10.1080/10291954.2005.11435114 File-URL: http://hdl.handle.net/10.1080/10291954.2005.11435114 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:19:y:2005:i:1:p:19-36 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435115_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L. Stainbank Author-X-Name-First: L. Author-X-Name-Last: Stainbank Title: Working in teams: An examination of the variables that improve team performance in accounting students Abstract: The accountancy profession requires professional accountants to acquire skills such as intellectual skills, technical and functional skills, personal skills, interpersonal and communication skills, and organizational and business management skills. In the academic environment, accounting students are often required to work in teams and may therefore acquire some of these skills, for example, the ability to work in a collaborative environment and better interpersonal skills.The paper examines the internal and external factors that may influence the performance of accounting student teams. The data was collected in a questionnaire survey and then analysed to determine what factors influence team performance. To operationalize performance, team members’ willingness to continue working together and the team’s mark were used. Results indicate that factors such as meeting management skills and interpersonal skills have a positive effect on the students’ satisfaction with the team and that interim feedback has a positive effect on students’ performance. Journal: South African Journal of Accounting Research Pages: 103-112 Issue: 1 Volume: 19 Year: 2005 Month: 1 X-DOI: 10.1080/10291954.2005.11435115 File-URL: http://hdl.handle.net/10.1080/10291954.2005.11435115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:19:y:2005:i:1:p:103-112 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435116_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S Firer Author-X-Name-First: S Author-X-Name-Last: Firer Author-Name: S M Williams Author-X-Name-First: S M Author-X-Name-Last: Williams Title: Firm ownership structure and intellectual capital disclosures Abstract: The primary purpose of this study is to investigate the association between three ownership structure characteristics and voluntary intellectual capital (IC) disclosure practices. Data for this study is hand collected from the 2000 annual reports of 390 Singapore publicly traded firms. Empirical results indicate Singapore publicly listed firms more closely owned were less likely to voluntarily disclose IC related information than counterparts with a more diffused ownership base. Also, those firms with a high level of executive director ownership were less inclined to voluntarily disclose IC related information than those where executive directors had smaller holdings in the entity. Finally, findings indicate government linked corporations (GLCs) will likely make more voluntary IC disclosures than non-GLCs. Overall, this study makes several unique contributions to the literature. First, the present study provides the first large-scale analysis of evidence of the association between ownership structure and voluntary intellectual capital disclosures. The study also contributes by broadening the examination of intellectual capital disclosure practices beyond general descriptive overviews. Journal: South African Journal of Accounting Research Pages: 1-18 Issue: 1 Volume: 19 Year: 2005 Month: 1 X-DOI: 10.1080/10291954.2005.11435116 File-URL: http://hdl.handle.net/10.1080/10291954.2005.11435116 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:19:y:2005:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435117_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B W Steyn Author-X-Name-First: B W Author-X-Name-Last: Steyn Author-Name: W D Hamman Author-X-Name-First: W D Author-X-Name-Last: Hamman Title: Are historic growth patterns an indication of future growth patterns? Abstract: Over the last decade or two, much has been made of high and exceptionally high growth rates. In this paper, sales growth rates for industrial companies listed in South Africa are examined for the period 1974 to 2002.Results indicate that companies growing above the median for consecutive years actually persisted in showing a growth rate above the median, which was better than expected from the binomial distribution. Tests showed that this result was repeated in companies with consecutive growth rates in the upper quartile and upper decile. It can therefore be deduced that companies with a history of above median, high and exceptionally high growth rates, do tend to maintain these types of growth rates.This investigation also found that, although there is a good chance that companies with growth rates in the upper decile for two consecutive years will again grow within the upper decile the following year, the chance is also better than expected that such a company will not survive the following year, demonstrating the risk accompanying such an exceptionally high growth rate. Journal: South African Journal of Accounting Research Pages: 73-89 Issue: 1 Volume: 19 Year: 2005 Month: 1 X-DOI: 10.1080/10291954.2005.11435117 File-URL: http://hdl.handle.net/10.1080/10291954.2005.11435117 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:19:y:2005:i:1:p:73-89 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435118_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: N M Waweru Author-X-Name-First: N M Author-X-Name-Last: Waweru Author-Name: E Uliana Author-X-Name-First: E Author-X-Name-Last: Uliana Title: Predictors of management accounting change in South Africa: Evidence from five retail companies Abstract: There is limited knowledge of management accounting practices and change in developing countries. This paper explores the processes of management accounting change in five South African retail companies by means of case studies. A number of factors have been identified from the contingency theory literature, which are applied in five cases to examine the management accounting changes and the reasons for them. The cases indicate considerable changes in the organisations’ management accounting practices during the last ten years. Recent environmental change in South Africa arising from government reform/deregulation policy and global competitive environments largely contributed to the management accounting change processes, which is consistent with contingency theory. This paper provides empirical evidence on which future research in less developed countries can be conducted. Journal: South African Journal of Accounting Research Pages: 37-71 Issue: 1 Volume: 19 Year: 2005 Month: 1 X-DOI: 10.1080/10291954.2005.11435118 File-URL: http://hdl.handle.net/10.1080/10291954.2005.11435118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:19:y:2005:i:1:p:37-71 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435119_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S Firer Author-X-Name-First: S Author-X-Name-Last: Firer Author-Name: G Swartz Author-X-Name-First: G Author-X-Name-Last: Swartz Title: An empirical analysis of the external audit fee in the “new” South Africa: The basic model Abstract: This paper studies the audit services market in Post Apartheid South Africa. The similarity of audit fee determinants between South Africa and other countries is analysed and the extent to which the large audit fee premium documented in other countries is also examined. This paper examines audit fee structure in South Africa for 1,605 companies listed on the JSE Securities Exchange (South Africa) for the 2000 – 2004 fiscal years. By analysing the data measuring a number of variables representing auditee size, risk, complexity, agency theory and size of audit firm, a model is developed for the determinants of audit fees. The study strongly confirms that most of the previous international research findings are also applicable to the South African market, and that audit fees are significantly associated with auditee size, risk, complexity of a business, agency theory and the size of the audit firm. The findings of this research study can be used as a benchmark for audit fee negotiation by highlighting the determinants of audit fees. The findings of this study differ from a previous study carried out by Simon (1995), where the determinants of audit fees were examined for the 1991 fiscal year. Simon (1995) found that the large audit firm fee premium documented in other countries did not exist in South Africa. This study found that this large audit fee premium does exist in Post Apartheid South Africa. Journal: South African Journal of Accounting Research Pages: 1-25 Issue: 1 Volume: 20 Year: 2006 Month: 1 X-DOI: 10.1080/10291954.2006.11435119 File-URL: http://hdl.handle.net/10.1080/10291954.2006.11435119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:20:y:2006:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435120_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K Sartorius Author-X-Name-First: K Author-X-Name-Last: Sartorius Author-Name: C Eitzen Author-X-Name-First: C Author-X-Name-Last: Eitzen Author-Name: C Nicholson Author-X-Name-First: C Author-X-Name-Last: Nicholson Title: The appropriateness of performance measurement in the service sector: A case study Abstract: The development of performance measures in service companies has not kept abreast with their manufacturing counterparts despite the unprecedented growth of this sector in recent decades. The objective of this paper is to contribute towards a better understanding of the design of performance measures in the service sector. More specifically, the objective of the paper is to develop a framework that can test the appropriateness of a service company’s performance measures. Two case studies in the service sector were employed to test the research question. The results indicate that the suggested framework is capable of testing the appropriateness of a service company’s performance measures in any service sector. The usefulness of the study is that the expanded standardised framework contributes to the literature of performance measurement, as well as facilitates the design of performance measurement systems in the service sector. Journal: South African Journal of Accounting Research Pages: 27-50 Issue: 1 Volume: 20 Year: 2006 Month: 1 X-DOI: 10.1080/10291954.2006.11435120 File-URL: http://hdl.handle.net/10.1080/10291954.2006.11435120 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:20:y:2006:i:1:p:27-50 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435121_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J Abor Author-X-Name-First: J Author-X-Name-Last: Abor Author-Name: N Biekpe Author-X-Name-First: N Author-X-Name-Last: Biekpe Title: An empirical test of the agency problems and capital structure of South African quoted SMEs Abstract: The agency theory suggests that the separation of ownership and control in firms creates conflicts of interest between the firm’s shareholders and managers. This is mainly because managers have the opportunity to use the resources of the firm in ways that benefit themselves personally to the detriment of shareholders’ wealth maximisation. This study examines the relationship between agency factors and the capital structure decisions of Small and Medium Enterprises quoted on the Johannesburg Stock Exchange. The results indicate that firms with one major institutional blockholder are able to monitor the opportunistic behaviour of management more effectively than those with more than one institutional blockholders. Effective monitoring could result in more debt being used by management to increase shareholder value. Also firms with high growth potentials tend to exhibit high debt ratio than those with low growth opportunities. With the exception of the number of institutional blockholders and growth opportunities, the associations between the other factors and capital structure were not significant. Journal: South African Journal of Accounting Research Pages: 51-65 Issue: 1 Volume: 20 Year: 2006 Month: 1 X-DOI: 10.1080/10291954.2006.11435121 File-URL: http://hdl.handle.net/10.1080/10291954.2006.11435121 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:20:y:2006:i:1:p:51-65 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435122_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Swartz Author-X-Name-First: G Author-X-Name-Last: Swartz Author-Name: M Negash Author-X-Name-First: M Author-X-Name-Last: Negash Title: An empirical examination of the Ohlson (1995) model Abstract: This paper examines the Ohlson (1995) model and documents its validity in explaining share prices using data for 129 firms continuously listed on the Johannesburg Securities Exchange (JSE hereafter), over a twelve year period. More specifically, cross-sectional multiple regressions and panel data least squares procedures are used to examine whether accrual accounting information and a residual income model are useful in explaining variations in year-end share prices. The cross-sectional results indicate that the Ohlson (1995) model does not establish a significant relationship between year-end share prices and accrual accounting information. However, the panel data least square model resulted in significant and positive relationships between year-end share prices and abnormal earnings, abnormal cash dividends and book value of assets. Journal: South African Journal of Accounting Research Pages: 67-82 Issue: 1 Volume: 20 Year: 2006 Month: 1 X-DOI: 10.1080/10291954.2006.11435122 File-URL: http://hdl.handle.net/10.1080/10291954.2006.11435122 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:20:y:2006:i:1:p:67-82 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435123_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E R Venter Author-X-Name-First: E R Author-X-Name-Last: Venter Author-Name: M Stiglingh Author-X-Name-First: M Author-X-Name-Last: Stiglingh Title: The timing of the recognition of a liability for secondary tax on companies in accordance with international financial reporting standards Abstract: United States Generally Accepted Accounting Practice (“US GAAP”) generally requires taxes to be measured at the rate applicable to distributed profits, while International Financial Reporting Standards (“IFRS”) requires the undistributed rate to be used. This current conflict between US GAAP and IFRS has particular relevance in South Africa, which has a dual tax system as a result of Secondary Tax on Companies (“STC”) being levied when a company distributes its profits. Currently, under US GAAP, South African companies would be required to raise a liability for the tax that would become payable on the future distribution of profits, while under IFRS, this is only recognised when the profits are distributed.The objective of the study is, therefore, to consider the timing of the recognition of a liability for STC.The literature study has indicated strong arguments for both the recognition of a liability for STC prior to the declaration of a dividend and the non-recognition of a liability for STC prior to the declaration of a dividend. The empirical study, however, concluded that the recognition of a liability prior to the declaration of a dividend is not appropriate, as a majority of the respondents believe that no “past event” has occurred and therefore the definition of a liability in terms of the IASB Framework is not satisfied. The results of the empirical study, however, also indicate that if the “past event” hurdle could be overcome, uncertainty exists as to whether the recognition of a liability for STC prior to the declaration is appropriate. This is as a result of mixed opinions among the respondents as to whether the “probability” and “measurability” criteria, in terms of the IASB Framework, could be satisfied prior to the declaration of a dividend. Journal: South African Journal of Accounting Research Pages: 83-118 Issue: 1 Volume: 20 Year: 2006 Month: 1 X-DOI: 10.1080/10291954.2006.11435123 File-URL: http://hdl.handle.net/10.1080/10291954.2006.11435123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:20:y:2006:i:1:p:83-118 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435124_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Richard Chivaka Author-X-Name-First: Richard Author-X-Name-Last: Chivaka Title: Cost management along the supply chain Abstract: The potential of strategic cost management tools to support inter-company supply chain value creation has been highlighted by a number of researchers. However, not much research using case studies has been done to demonstrate how cost management tools are applied along supply chains. In addition, limited research has focused on cost management along supply chains in developing countries such as South Africa. This research uses multiple case studies to investigate and gain insight into the manner in which cost management is applied along a product’s supply chain in a developing country - South Africa. The main objective of the study is to contribute to a better understanding of how costs along supply chains can be managed using cost management tools. The paper demonstrates that cost management techniques such as target costing, total quality management, just-in-time and life-cycle costing are being applied. In addition, the research reveals that these cost management techniques assist in cost planning, inventory reduction, cycle time reduction, improved customer satisfaction leading to lower returns and warranty costs, proactive management of quality-related costs, and extended cost analysis across the supply chains Journal: South African Journal of Accounting Research Pages: 1-29 Issue: 1 Volume: 21 Year: 2007 Month: 1 X-DOI: 10.1080/10291954.2007.11435124 File-URL: http://hdl.handle.net/10.1080/10291954.2007.11435124 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:21:y:2007:i:1:p:1-29 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435125_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L J Stainbank Author-X-Name-First: L J Author-X-Name-Last: Stainbank Author-Name: M J C Wells Author-X-Name-First: M J C Author-X-Name-Last: Wells Title: Differential corporate reporting: Registered accountants’ and auditors’ views in South Africa Abstract: This paper reports the results of a postal survey of South African Registered Accountants’ and Auditors’ views on the suitability of selected South African Statements of Generally Accepted Accounting Practice to a range of South African entities varied by size, structure and user base. The paper provides evidence of (1) the need for differential corporate reporting in South Africa, (2) that a single threshold for differential corporate reporting may not adequately address the South African differential corporate reporting needs, and (3) the need for both the presentation and disclosure and the recognition and measurement requirements of specific statements of South African Generally Accepted Accounting Practice to be dealt with in differential corporate reporting standards. Journal: South African Journal of Accounting Research Pages: 31-55 Issue: 1 Volume: 21 Year: 2007 Month: 1 X-DOI: 10.1080/10291954.2007.11435125 File-URL: http://hdl.handle.net/10.1080/10291954.2007.11435125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:21:y:2007:i:1:p:31-55 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435126_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E Chamisa Author-X-Name-First: E Author-X-Name-Last: Chamisa Title: The use and perceived usefulness of IAS 29 restated financial statements by Zimbabwean investment analysts Abstract: International Accounting Standard 29 (IAS 29) (Financial Reporting in Hyperinflationary Economies) asserts that, in a hyperinflationary economy, financial statements “are useful only if they are expressed in terms of the measuring unit current at the balance sheet date” (International Accounting Standards Board (IASB), 2005:1259). In the context of the Zimbabwean economy, this study empirically investigates this assertion using a methodological triangulation comprising the protocol analysis (or process tracing) and the questionnaire techniques. Specifically, the investigation assesses the actual use and perceived usefulness of IAS 29 restated financial statements by Zimbabwean investment analysts with respect to the buy-hold-sell decisions. The empirical results indicate that at present, the Zimbabwean investment analysts make little or no use of hyperinflation-adjusted financial statements (HIAFSs) when making ordinary share investment decisions and perceive the information as “not useful”. This perception appears to be the critical reason why the analysts interviewed make little or no use of HIAFSs. Given this paradox, it appears that the need for further empirical research should be regarded as sine qua non if IAS 29 is to remain relevant in Zimbabwe and avoid suffering the same fate as its predecessors, IAS 6 and IAS 15. Further research should be conducted to provide sufficient evidence to enable the IASB and regulatory authorities in Zimbabwe to reassess the relevance of IAS 29. Journal: South African Journal of Accounting Research Pages: 57-79 Issue: 1 Volume: 21 Year: 2007 Month: 1 X-DOI: 10.1080/10291954.2007.11435126 File-URL: http://hdl.handle.net/10.1080/10291954.2007.11435126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:21:y:2007:i:1:p:57-79 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435127_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G D I Barr Author-X-Name-First: G D I Author-X-Name-Last: Barr Author-Name: C G Holdsworth Author-X-Name-First: C G Author-X-Name-Last: Holdsworth Author-Name: B S Kantor Author-X-Name-First: B S Author-X-Name-Last: Kantor Title: Portfolio strategies for hedging against rand weakness Abstract: This paper considers how portfolios may be structured which provide protection against Rand exchange rate movement and, in particular, against Rand weakness. Two portfolio optimisation methods are used to estimate the portfolio weights of the Top 40 shares listed on the Johannesburg Stock Exchange (JSE) which provide the maximum protection against some pre-defined expectation of Rand weakness. The performance of these Rand-hedge portfolios is then compared to that of the Itrix FTSE 100 Exchange Traded fund (ETF) which mimics the London-based FTSE 100. While the portfolios based on the JSE Top 40 components provide slightly less Rand hedge protection than the Itrix FTSE 100 ETF, they are still able to provide a very effective exchange rate hedge. Moreover, they are also able to provide greater exposure to the South African market and this has resulted in a significant performance advantage over the Itrix FTSE 100 over the last five years. Journal: South African Journal of Accounting Research Pages: 81-101 Issue: 1 Volume: 21 Year: 2007 Month: 1 X-DOI: 10.1080/10291954.2007.11435127 File-URL: http://hdl.handle.net/10.1080/10291954.2007.11435127 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:21:y:2007:i:1:p:81-101 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435128_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: P L Wessels Author-X-Name-First: P L Author-X-Name-Last: Wessels Title: An analysis of the current IT education offered to accounting students at South African universities Abstract: The accountancy and auditing profession operates within an environment that is changing at a rapid pace. Professional accountants need to remain relevant in this changing environment that may require them to change or adapt the services they offer to their clients. One of the key drivers of change in the environment is the advances in information and communication technologies (ICT). Accountants in South Africa are educated through four years of formal academic study and three years of practical training. By the end of the formal training, students entering the profession as trainee accountants should possess a set of critical ICT skills. However, currently there is no formal study or information available on which of the elements of this framework students are exposed to whilst studying at the different South African universities. This may result in students entering the profession without possessing some of the critical ICT skills necessary to perform their job competently.The purpose of this investigation is to determine the extent to which students currently studying accountancy at South African universities will be able to acquire the critical ICT skills to be competent in using information technology. Through this analysis, the shortcomings and strengths of current education practices followed at South African universities will be identified and discussed in order that role-players can identify strategies to improve the education offered to students. Journal: South African Journal of Accounting Research Pages: 103-126 Issue: 1 Volume: 21 Year: 2007 Month: 1 X-DOI: 10.1080/10291954.2007.11435128 File-URL: http://hdl.handle.net/10.1080/10291954.2007.11435128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:21:y:2007:i:1:p:103-126 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435129_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R Oberholzer Author-X-Name-First: R Author-X-Name-Last: Oberholzer Title: A Note: Study abroad programs: A potential key to successful accounting and management education in a global world Abstract: The continuing globalization of business underscores the importance of educating students to develop a broad worldview. This exploratory study attempts to provide educators with some insight into the usefulness of a short-term study abroad program.An existing short-term study abroad program undertaken by students from a first world country (United States of America) to a developing country (South Africa) was used as a basis for conducting the study.It became evident during the study that the mere idea of studying abroad served to initiate research into another culture. In addition, the participants believed that a visit to another country provides better insight into that country. This study argues that it is possible for a study abroad program to be used as an important educational tool for improving accounting and management education in a dynamic global world. Attending a study abroad program helps students gain international experience and intercultural skills, which are key factors in successful globalization and management. Journal: South African Journal of Accounting Research Pages: 127-146 Issue: 1 Volume: 21 Year: 2007 Month: 1 X-DOI: 10.1080/10291954.2007.11435129 File-URL: http://hdl.handle.net/10.1080/10291954.2007.11435129 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:21:y:2007:i:1:p:127-146 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435130_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: P J Naudé Author-X-Name-First: P J Author-X-Name-Last: Naudé Title: Ethics education in accounting: An outsider perspective Abstract: This paper is a discussion of recent initiatives by the International Federation of Accountants with regard to ethics education in the accounting profession. This discussion is framed by four related questions focusing on the reasons for ethics education (why ethics?), the potential and limitations of ethics education (can ethics be taught?), followed by the content (what is to be taught?) and delivery mode (how is ethics to be taught?). Despite some critical remarks, there is great appreciation for the profession’s efforts to restore public trust and serve the common good.“The accounting profession must restore its priceless asset: its reputation.”(Barry Melanchon, AICPA President, 2002) Journal: South African Journal of Accounting Research Pages: 1-17 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435130 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435130 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435131_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E. du Toit Author-X-Name-First: E. Author-X-Name-Last: du Toit Title: Characteristics of companies with a higher risk of financial statement fraud: A survey of the literature Abstract: Fraud and corruption in companies is a serious problem in this day and age. One only needs to think of Enron, Parmalat and Macmed. Companies are constantly identifying new and ingenious ways to defraud their customers, investors, the government and others.For this reason it is important for stakeholders with an interest in a company to devise ways of detecting and identifying fraud to protect their interests. Managers are primarily responsible for the prevention and detection of financial statement fraud. However, they may be the primary perpetrators of fraud. The responsibility to detect and identify financial statement fraud should also not rest solely with the auditors, as they cannot be expected to provide absolute assurance that all material misstatements are detected and identified.This research set out to find whether there are any characteristics in a company by means of which possible financial statement fraud can be detected and identified. Numerous authors gave their insight on the topic in the past, but few came to a clear-cut conclusion of fraud indicators.The article commences with an explanation of financial statement fraud. It further analyses various authors’ statements on the characteristics displayed by companies with a higher propensity for financial statement fraud. The study confirmed that there are characteristics which can identify the risk of financial statement fraud in companies. Parties with an interest in a company, notwithstanding managers and auditors, can observe and measure these characteristics to detect and identify such fraud. Journal: South African Journal of Accounting Research Pages: 19-44 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435131 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435131 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:19-44 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435132_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: T Ruddy Author-X-Name-First: T Author-X-Name-Last: Ruddy Author-Name: G K Everingham Author-X-Name-First: G K Author-X-Name-Last: Everingham Title: Creative accounting, accounting errors, and the ability of users to detect and adjust for them Abstract: Creative accounting refers to the various practices management use to manipulate financial statements in an effort to cause users to draw desired conclusions. The literature reveals that creative accounting is indeed practised in a number of countries, including South Africa.This paper examines the extent to which final year South African accounting students are able to detect and adjust for creative accounting practices and for errors resulting from incorrect application of accounting standards.A case study based experimental approach was adopted to achieve this objective, using the 2002 final year accounting students as subjects, at a major residential university, and a case study developed to include 11 creative accounting practices (including misapplication of standards).On average, the students detected 4.75 of the 11 inappropriate practices incorporated into the case study. The detection rate for each of the 11 practices varied between 10% and 84% and was influenced by their location within the financial statements; the average detection rate for practices located in the statement of accounting policies was significantly higher than that for practices located in the notes to the financial statements.Findings are compared with the Breton and Taffler (1995) study of stockbroker analysts in the United Kingdom and suggest that abilities to detect and correct for creative accounting practices are influenced by the level of accounting knowledge, and the extent of experience with such issues in practice. Journal: South African Journal of Accounting Research Pages: 45-95 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435132 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435132 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:45-95 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435133_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C. Correia Author-X-Name-First: C. Author-X-Name-Last: Correia Author-Name: G. Holman Author-X-Name-First: G. Author-X-Name-Last: Holman Title: An analysis of underpricing and aftermarket performance of initial public offerings on the Alternative Exchange (AltX) Abstract: This paper reviews the international evidence of underpricing of Initial Public Offerings and analyses IPO underpricing by companies listing on the South African Alternative Exchange (AltX). Underpricing is indicated by measuring the percentage difference between the initial offer price and the closing market price on the first day of trading. Underpricing is costly to the pre-issue shareholders. However, studies have reported significant long run underperformance of investing in IPO listings. The objective of this study is to test whether new listings on the AltX are subject to underpricing and measure the level of such underpricing as well to measure the aftermarket performance of investing in new listings on the AltX.During the period October 2003 to September 2007, 42 firms listed on the AltX. The findings of this study indicate that underpricing was evident on the AltX during the period under review with the average first-day return recorded at 29%. The level of underpricing compares with other South African studies which indicated an average underpricing of between 27% and 32.7% for companies listing on the JSE Securities Exchange. The results of this study are consistent with the level of underpricing indicated in prior studies. However, the level of underpricing indicated by a prior study of the Development Capital Market (DCM) was significantly higher than the underpricing indicated by this study for new listings on the AltX. This may be due to the focus on high quality listings by the AltX, increased listing and corporate governance requirements as compared to the DCM as well as due to the continuing role of the Designated Advisor to companies listing on the AltX.Levels of underpricing have not increased on the AltX in the last six months of the study and there is no evidence to indicate that the level of underpricing is related to firm size, the level of proceeds or the age of the firm.Limited analysis of aftermarket performance of the new listings on the AltX indicates that investors would have earned a non-risk adjusted cumulative return of 44% higher than the market benchmark (ALSI), based on the opening issue price. If the first day return is excluded then investors would have earned a non-risk adjusted cumulative return of only 6% higher than the market benchmark. The performance of AltX companies, excluding the first-day return, has been similar to the Small Cap Index of the JSE. The study did not find that high initial returns for AltX companies were followed by long-run under-performance, yet the very low incremental return relative to the ALSI market index, once the first-day return is omitted is surprising relative to the higher risks involved of investing in the small listed entities of the AltX. Journal: South African Journal of Accounting Research Pages: 97-117 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435133 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435133 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:97-117 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435134_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Steyn Author-X-Name-First: M Author-X-Name-Last: Steyn Title: Cost contribution agreements: The South African tax implications of research and development costs incurred by multinationals participating in joint research projects with offshore associates Abstract: Cost Contribution Agreements (CCAs) or cost sharing of research and development costs, is one of the vehicles sanctioned by tax authorities that may be used by multinational enterprise groups (MNEs) to develop and distribute intangible property among members of the group. Such an agreement, which is often used as an international tax planning mechanism, may provide a solution to the challenge of determining a transfer price for the cross-border transfer of rights to intangible property between connected entities, thereby avoiding double taxation, limiting transfer pricing uncertainty and transfer pricing risk, as well as providing the planning opportunity for MNEs to potentially reduce their global tax liability.Although CCAs have been used in international tax planning for a considerable number of years by MNEs, the South African legislative tax framework, unlike some international tax systems, does not make specific provision for the regulation of CCAs. The purpose of this study is therefore to consider the concept of CCAs, and to critically evaluate, within the current South African regulatory framework, the potential application of CCAs for South African taxpayers, with specific reference to the deductibility of CCA costs incurred. Although CCAs that are well planned and structured may provide tax planning opportunities, South African taxpayers face unique planning challenges, since the income tax deduction regime in respect of research, development and intangibles may potentially discourage participation by South African resident taxpayers in joint research and development initiatives such as CCAs. Journal: South African Journal of Accounting Research Pages: 119-145 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435134 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435134 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:119-145 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435135_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: P L Wessels Author-X-Name-First: P L Author-X-Name-Last: Wessels Title: The identification and discussion of strategies for implementing an IT skills framework in the education of professional accountants Abstract: The accountancy and auditing profession operates within an environment that is changing at a rapid pace. It is the responsibility of the profession to ensure that all its members meet the expectations that the users of their services have of them. For professional accountants to remain relevant, they may have to change or adapt the services they offer to their clients. It is the responsibility of professional accountancy bodies to plan for these changes to ensure that members who join the profession possess the required knowledge and skills to be relevant and to remain relevant.One of the key drivers of change has been identified as the advances in information and communication technologies. Information and communication technologies have an impact on the role that accountants play (i.e. what they do), as well as on how they perform this role (i.e. how they do it).The aim of this article is to determine the perceptions of role-players at South African universities to identify strategies that can be employed by universities to ensure that students entering the profession as trainee accountants demonstrate the critical IT skills to be competent accountants in the South African environment.This research shows that there is a real sense within SAICA and academic circles of the importance of students acquiring a relevant set of IT skills through the integration of IT with the professional subjects. However, there is uncertainty about what these IT skills are and how it could be integrated with the professional subjects. It is therefore important that all the role-players understand and demonstrate the urgency to integrate IT skills with the knowledge acquired in the professional subjects to ensure that accounting students acquire the relevant and critical IT skills to be competent accountants within the South African business environment. Journal: South African Journal of Accounting Research Pages: 147-181 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435135 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:147-181 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435136_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C Lamprecht Author-X-Name-First: C Author-X-Name-Last: Lamprecht Title: Business rescue replacing judicial management: An assessment of the extent of problems solved Abstract: The South African Companies Act 46 of 1926 introduced judicial management as a statutory corporate rescue procedure for companies to be used before liquidation, where appropriate. It was retained in the South African Companies Act 61 of 1973, even though the Master of the then Supreme Court recommended its abolishment. Several studies identified different problems and deficiencies and advocated reform, either in the form of a change in current judicial management legislation or through completely new legislation. The Department of Trade and Industry therefore issued a guideline for corporate reform in 2004 in which it proposed a debtor-friendly business rescue regime to replace the creditor-friendly judicial management regime. The ensuing Companies Bill detailing the business rescue provisions was issued in 2007.Acceptance of so far-reaching a change as that from a creditor-friendly to a debtor-friendly regime requires that one be convinced that the problems and deficiencies of the old regime are solved by the replacing regime. This study was therefore undertaken to assess the extent to which the problems and deficiencies of judicial management will be addressed by the proposed business rescue provisions. The assessment was made through a first-time documentation, from current literature, of a comprehensive list of the main problems and deficiencies that have caused judicial management to fail. The business rescue provisions of the Companies Bill were then examined to assess the extent to which the identified problems and deficiencies of judicial management have been addressed. Finally, recommendations for further improvement were made where applicable.The assessment found that only some problems and deficiencies related to judicial management have been addressed. The areas of concern were found to be the lack of specialised courts, the lack of the proper qualifications and regulation of supervisors, remaining conflicts of interest and the exclusion of non-company business entities from the business rescue regime. The study further provided insight and background knowledge concerning new legislation and shed light on the development of a new profession in South Africa, that of the turnaround practitioner. Journal: South African Journal of Accounting Research Pages: 183-196 Issue: 1 Volume: 22 Year: 2008 Month: 1 X-DOI: 10.1080/10291954.2008.11435136 File-URL: http://hdl.handle.net/10.1080/10291954.2008.11435136 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:22:y:2008:i:1:p:183-196 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435137_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R Chivaka Author-X-Name-First: R Author-X-Name-Last: Chivaka Author-Name: A Siddle Author-X-Name-First: A Author-X-Name-Last: Siddle Author-Name: L Bayne Author-X-Name-First: L Author-X-Name-Last: Bayne Author-Name: C Cairney Author-X-Name-First: C Author-X-Name-Last: Cairney Author-Name: J Shev Author-X-Name-First: J Author-X-Name-Last: Shev Title: Reasons for share repurchases in South Africa: Theory versus practice Abstract: Share repurchases (share buy-backs) have become an increasing global phenomenon, with South Africa (SA) following the international trends since 1999. While there has been a significant amount of international research concerning share repurchases, the same is not true of SA. In addition, there is little research that compares the theoretical reasons given for share repurchases and practice. The objectives to be addressed in this research are thus twofold; first to ascertain the reasons disclosed by company directors for repurchases in order to create visibility of the SA practice, and second to identify the similarities and differences between the reasons for share repurchases in SA and the theoretical reasons, and those emerging from academic literature (in finance theory), in order to contribute to the bridging of the gap between theory and practice. In order to address these objectives, this research uses an archival analysis method to gather data from companies listed on the Johannesburg Securities Exchange Ltd (JSE). Reasons for specific share repurchases given by companies listed on the JSE are then analysed and compared against theoretical reasons using the pattern of behaviour approach. The paper contributes to knowledge by creating visibility of the reasons that influence share repurchases in the SA context. In addition, this research contributes to the closing of the gap between theory and practice by highlighting some of the potential tensions that exist between management and stakeholders in the process of share repurchases. Such tensions, which arise from differences in expectations, have the effect of precluding management from explicitly citing some of the reasons given in finance theory when motivating for share repurchases. Journal: South African Journal of Accounting Research Pages: 1-30 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435137 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435137 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:1-30 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435138_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B Marx Author-X-Name-First: B Author-X-Name-Last: Marx Title: An analysis of audit committee responsibilities and disclosure practices at large listed companies in South Africa Abstract: Audit committees traditionally focused on oversight of the financial reporting process with the aim of ensuring that accurate, credible and reliable financial reporting is provided to the shareholders. The role and responsibilities of the audit committee have evolved, however, and today’s audit committees are required to deal with diverse emerging issues, such as integrated sustainability reporting and fostering an ethical culture in doing business.The main objective of the paper is to investigate the responsibilities performed and disclosure practices of audit committees at large listed companies in South Africa. The data was collected through inspection of annual reports and questionnaires sent to the audit committee chairs in the population. The main findings of the study are that the audit committees at these companies are performing their traditional responsibilities of overseeing external audit, internal audit, financial reporting, internal control and risk management reasonably well, while to a lesser extent dealing with emerging issues such as sustainability reporting and ethics compliance. It was also found that the reporting in the annual report on the responsibilities performed by audit committees was of a poor standard and does not reflect the true state of affairs. Journal: South African Journal of Accounting Research Pages: 31-44 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435138 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:31-44 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435139_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Charlton Author-X-Name-First: G Author-X-Name-Last: Charlton Author-Name: B Marx Author-X-Name-First: B Author-X-Name-Last: Marx Title: An investigation into the impact of continuous auditing on the external auditors of the four largest banks in South Africa Abstract: With the increasing demands on technology and the increase in the number of transactions processed by organisations, users of financial information require information that is accurate, valid and reliable, but, most importantly, relevant – which means having the information available on a timelier basis than before. These requirements therefore necessitate a process of continuous monitoring of controls from a management perspective, and a process of continuous auditing on, as far as possible, a real-time basis from an external audit perspective.This article focuses on continuous auditing from an external auditor perspective, with the four major commercial banks in South Africa selected to test the theories of continuous auditing identified in the literature. The research results showed that the external auditors of these banks use continuous auditing, but only to a limited extent. The article therefore concludes that, from a South African perspective, continuous auditing is not at this stage the preferred method of auditing. Journal: South African Journal of Accounting Research Pages: 45-65 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435139 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435139 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:45-65 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435140_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Oberholzer Author-X-Name-First: M Author-X-Name-Last: Oberholzer Author-Name: G van der Westhuizen Author-X-Name-First: G Author-X-Name-Last: van der Westhuizen Title: Estimating technical and scale efficiency in banks and its relationship with economic value added: A South African study Abstract: This study used monthly balance sheet data, annual financial statement reports as well as other relevant data to calculate the technical and scale efficiency estimates (determined by Data Envelopment Analysis (DEA)) as well as the performance measurement of economic value added (EVA) for three of the major banks in South Africa. The main purpose of the study was to determine, by means of multiple regression analysis, whether changes in the efficiency estimates lead to changes in the EVAs of the banks. This study found that the overall regression model is statistically significant for only one of the three banks. Journal: South African Journal of Accounting Research Pages: 67-86 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435140 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435140 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:67-86 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435141_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K Barac Author-X-Name-First: K Author-X-Name-Last: Barac Title: Management accounting and financial management knowledge requirements for South African entry-level trainee accountants Abstract: The literature shows that the content of management accounting syllabuses does not always correspond to the subject knowledge as applied in practice. The purpose of this study is to investigate whether the perceptions of TIPP and TOPP training officers differ with respect to the importance and depth of management accounting and financial management topics as contained in the prescribed SAICA syllabus.The results of this study indicate that the two types of training officers disagree significantly on the importance of 22 of the identified 31 management accounting topics. TIPP training officers place them at the lower end of the scale when it comes to importance, but TOPP training officers rank them somewhat higher. Several traditional management accounting topics are perceived as important by TIPP and TOPP training officers, which may suggest that traditional management accounting topics still have a role to play in the education of today’s South African trainee accountants.The same tendency was found with regard to financial management topics. For 12 of the 15 identified financial management topics, the effect of the type of training officer was moderate, while the effect became moderate to large for the three remaining topics (treasury function topics). For both TIPP and TOPP respondents the depth in which topics should be mastered is positively correlated with their perceived attributed importance.SAICA should consider these different perceptions of TIPP and TOPP training officers in the formulation of its new training model. Journal: South African Journal of Accounting Research Pages: 87-111 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435141 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:87-111 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435142_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L P Steenkamp Author-X-Name-First: L P Author-X-Name-Last: Steenkamp Author-Name: R S Baard Author-X-Name-First: R S Author-X-Name-Last: Baard Author-Name: B L Frick Author-X-Name-First: B L Author-X-Name-Last: Frick Title: Factors influencing success in first-year accounting at a South African university: A comparison between lecturers’ assumptions and students’ perceptions Abstract: Lecturers in first-year Financial Accounting at a South African university assumed poor student throughput rates were attributable to various factors, including the influence of prior learning of Accounting, the language of instruction used, poor class attendance and a lack of preparation by students for assessment opportunities. This article investigates how these assumptions compare to student perceptions of factors influencing their success in the module. The significance of the reported student perceptions was also compared to institutional data, such as study records. The results indicated that poor class attendance, inadequate preparation, insufficient time and a lack of English tuition are the main factors leading to poor performance. It was found that students who had Accounting as a school subject, had Afrikaans as a home language, and regularly attended classes, were statistically significantly more successful in first-year Financial Accounting at this particular South African university. The findings of this study create a platform for continued debate on the importance of a variety of factors for first-year success. Journal: South African Journal of Accounting Research Pages: 113-140 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435142 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435142 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:113-140 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435143_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Negash Author-X-Name-First: M Author-X-Name-Last: Negash Title: The effects of IFRS adoption: A review of the early evidence Abstract: This review documents the conceptual, methodological and policy issues that relate to the domain of financial reporting research that attempts to examine whether there are measurable gains, (if any) stemming from the adoption of international financial reporting standards, (IFRS). It selects and reviews four recent papers from conceptual, research design and policy perspectives. Information content, uncertainty-disclosure, value relevance, and earnings and accounting quality studies have all attempted to show the benefits of finer and increased information environments. Notwithstanding the early evidence, this review argues that the papers face both epistemological and research design problems, in that IFRS adoption effect studies do not take cognizance of the contributions of the literature on behavioral finance, financial integration, project analysis, regulation, earnings sustainability and market microstructure. In addition, the studies ignore the possibility that the greater percentage of the benefits and costs may not be directly observable. The review is done against the backdrop of the recent financial crisis. Journal: South African Journal of Accounting Research Pages: 141-154 Issue: 1 Volume: 23 Year: 2009 Month: 1 X-DOI: 10.1080/10291954.2009.11435143 File-URL: http://hdl.handle.net/10.1080/10291954.2009.11435143 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:23:y:2009:i:1:p:141-154 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435144_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: N M Waweru Author-X-Name-First: N M Author-X-Name-Last: Waweru Title: Do dividends matter? Some evidence from an emerging market Abstract: This study investigated the information content theory of dividends in the Kenyan Stock market. Data was obtained from the Nairobi Stock Exchange (NSE) hand book for the period 2001–2007. Using regression analysis, the study attempted to determine the factors that influence dividend payments in the subject companies. The results of this study indicate that dividend payments are mainly influenced by the current year’s income followed by the company’s retained earnings. The study also found a significant relationship between the share prices of the companies and the dividends paid. We conclude that whereas profitability drive share prices, dividends also influence the share prices of the companies listed on the NSE. Therefore managers may use dividends to convey information. However the study found no significant relationship between dividend payment and liquidity. Journal: South African Journal of Accounting Research Pages: 1-11 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435144 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435144 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:1-11 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435145_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Oberholzer Author-X-Name-First: M Author-X-Name-Last: Oberholzer Title: A model to compare firms’ efficiency in creating shareholders’ value Abstract: The first objective of this study is to develop a Data Envelopment Analysis (DEA) model to determine the relative technical efficiency of firms to create shareholders’ value. The second objective is to compare the technical efficiency with the profit ratios in the Du Pont analysis to determine whether there are some consistencies between these two measures of performance. Data of 33 JSE Limited listed manufacturing companies were used over a five-year period. The study found that there is a significant monotone dependence between the annual technical efficiency and the return on equity of companies. The practical implication of the study is that it provides a functional model that indicates an aggregated judgement of a firm’s efficiency of using resources to create shareholders’ value, and, the readily available return on equity can be used as a substitute to technical efficiency, which is more complicated to calculate. The value of this study is that it is the first to apply a unique DEA model for profit-motive companies. Journal: South African Journal of Accounting Research Pages: 13-30 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435145 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435145 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:13-30 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435146_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Holman Author-X-Name-First: G Author-X-Name-Last: Holman Author-Name: J Shev Author-X-Name-First: J Author-X-Name-Last: Shev Author-Name: F Zheng Author-X-Name-First: F Author-X-Name-Last: Zheng Title: Evidence of share option backdating in the JSE Top 40 since 2001 Abstract: This study investigates whether executives backdate share option grant dates to their advantage in South Africa. Using data for 175 options granted to executives of the JSE top 40 companies between 2001 and 2006, a pattern of negative cumulative abnormal share returns before the grant dates but positive and increasing returns thereafter is observed. This pattern is far more pronounced for unscheduled grants than scheduled grants. Statistical testing shows that the mean cumulative abnormal returns are significantly different from zero after the grant date, but are not significantly different from zero before the grant date. The mean differences between pre- and post-grant period average cumulative abnormal share returns are significantly different. These results suggest that there is statistical evidence that opportunistic behaviour around executive option grants, including backdating, took place. Journal: South African Journal of Accounting Research Pages: 31-48 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435146 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435146 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:31-48 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435147_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C G Mitchell Author-X-Name-First: C G Author-X-Name-Last: Mitchell Author-Name: T R Hill Author-X-Name-First: T R Author-X-Name-Last: Hill Title: An exploratory analysis of stakeholders’ expectations and perceptions of corporate social and environmental reporting in South Africa Abstract: This paper presents the results of a study that surveyed South African stakeholders of corporate social and environmental reporting to assess their perceptions of what businesses should be reporting, and how effectively they perceive it is being reported. Evidence was gathered from questionnaires completed by respondents of samples from key stakeholder groups, and from interviews of representatives of other stakeholders groups.The study found that areas traditionally associated with CSR reporting such as impacts on the environment, employees, consumers and the broader public, were considered to be inadequately reported. The study also found that many areas of traditional financial and corporate governance were also perceived to be less than adequately reported. The paper concluded that this represents evidence for a need for improved corporate reporting. Stakeholders believed that there is insufficient pressure on companies to present CSR disclosure.The study also showed that stakeholders believed that CSR should be included with the annual report, should be prepared to the same standards as financial reported, and should be externally verified or audited. Journal: South African Journal of Accounting Research Pages: 49-78 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435147 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:49-78 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435148_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L J Stainbank Author-X-Name-First: L J Author-X-Name-Last: Stainbank Title: Students’ perceptions of the usefulness of an accounting project in acquiring accounting knowledge and professional skills Abstract: This paper focuses on the usefulness of an accounting project that was implemented in order to encourage students to integrate their knowledge of different modules at a third year level, to enable them to acquire accounting knowledge and professional skills, to work in groups, and to be active participants in the learning process.This paper extends Stainbank’s 2005 study by presenting and discussing students’ perceptions of the usefulness of the project in enhancing a broad range of skills and abilities for three independent years. Analyses of the results reveal significant differences in students’ perceptions as to the enhancement of these skills by the project. Gender and language differences were also found and the not English speaking students rated the value of the project statistically significantly higher than the English speaking students.When the responses were analysed according to the five groups of skills as outlined by the International Federation of Accountants’ International Education Standard IES 3, the students ranked „personal skills’ as the highest benefit of the project. The language analysis indicates the importance of this learning intervention to enhance the skills outlined in this paper and IES 3. Journal: South African Journal of Accounting Research Pages: 79-100 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435148 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435148 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:79-100 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435149_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D A Warneke Author-X-Name-First: D A Author-X-Name-Last: Warneke Author-Name: R D Jooste Author-X-Name-First: R D Author-X-Name-Last: Jooste Title: An analysis of certain issues relating to the taxation of equity instruments Abstract: In this article we examine certain issues associated with Section 8C and other important and frequently encountered related provisions of the Income Tax Act. The issues examined relate to: the difference in tax treatment of restricted and unrestricted equity instruments; possible inequitable tax treatment where an employee receives both an interest free or low interest loan and an equity instrument from an employer and also where a taxpayer receives an equity instrument as trading stock; and the donations tax implications of the donation of a restricted equity instrument. The article does not purport to be an exhaustive analysis of these provisions; rather it discusses certain interesting issues encountered by the authors. Journal: South African Journal of Accounting Research Pages: 101-128 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435149 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:101-128 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435150_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: R S Baard Author-X-Name-First: R S Author-X-Name-Last: Baard Author-Name: L P Steenkamp Author-X-Name-First: L P Author-X-Name-Last: Steenkamp Author-Name: B L Frick Author-X-Name-First: B L Author-X-Name-Last: Frick Author-Name: M Kidd Author-X-Name-First: M Author-X-Name-Last: Kidd Title: Factors influencing success in first-year Accounting at a South African university: The profile of a successful first-year Accounting student Abstract: The study investigated factors influencing success of first-year students in Financial Accounting at a South African university, thereby establishing a profile of successful and at-risk students. A two step process was followed to achieve the goals of the study. Firstly, the significance of a number of factors influencing students’ ability to succeed was statistically tested to determine the possible correlation between specific factors and students’ success. The most important factors in determining success of students in the module include average Grade 12 mark, whether students had Accounting as a subject at secondary school, class attendance, home language (Afrikaans or English), and the programme within which students were enrolled. Secondly, the simultaneous effect of all these factors was determined by means of a multivariate technique to derive a profile of successful and at-risk students. The results show general trends that could inform admission decisions and guide the implementation of interventions for at-risk students, while academically stimulating the highly successful students. Journal: South African Journal of Accounting Research Pages: 129-147 Issue: 1 Volume: 24 Year: 2010 Month: 1 X-DOI: 10.1080/10291954.2010.11435150 File-URL: http://hdl.handle.net/10.1080/10291954.2010.11435150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:24:y:2010:i:1:p:129-147 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435151_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J H Hesketh Author-X-Name-First: J H Author-X-Name-Last: Hesketh Title: Accounting academics’ multiple challenges: Issues-driven learning offers a way forward Abstract: Accounting academics in South Africa are under pressure from their stakeholders, particularly the South African Institute of Chartered Accountants (SAICA) and the Department of Education (DoE), to make urgent changes. Challenges include the need for increased research output and for new teaching, learning and assessment techniques that require and enable students to develop additional competencies beyond core technical knowledge, thereby improving graduate attributes and student retention rates. Changes needed involve an educational focus and mind-shift. The purpose of this article is to establish how issues-driven learning (IDL), as an example of experiential or experience-based learning theory (ELT) can be implemented to meet the challenges. Journal: South African Journal of Accounting Research Pages: 1-34 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435151 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435151 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:1-34 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435152_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S J Kruger Author-X-Name-First: S J Author-X-Name-Last: Kruger Title: Students’ and lecturers’ perceptions of the effect of open-book examinations on the learning behavior of accountancy students Abstract: In 2003 the South African Institute of Chartered Accountants (SAICA) changed its assessment policy from a closed-book to an open-book format. One reason for this was to encourage better learning behaviour amongst students. This paper investigates whether students perceive this aim to have been achieved, by means of a survey conducted among final-year accounting students who were preparing for the qualifying examination of SAICA. Assessment in the first three years of study was generally done by means of closed-book examinations, but in their final year, students were assessed by means of open-book tests and examinations (OBA). A comparison was made between the views of these potential chartered accountants and those of lecturers in accounting departments at selected universities.Students were generally positive about the introduction of OBA, but lecturers were less enthusiastic. Their conclusion was that OBA has generally been a step in the right direction to preparing students better for the workplace. Cognisance should, however, be taken of the negative study behaviour that was encountered. The paper also proposes strategies to improve the effectiveness of OBA. Journal: South African Journal of Accounting Research Pages: 35-57 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435152 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435152 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:35-57 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435153_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Sher Author-X-Name-First: G Author-X-Name-Last: Sher Author-Name: G D I Barr Author-X-Name-First: G D I Author-X-Name-Last: Barr Title: Portfolio rebalancing in South Africa Abstract: The theory of so-called ‘optimal’ portfolio rebalancing has emerged over the last decade in journals and working papers, but this theory has several drawbacks, being based on advanced mathematics and relying on sets of restrictive assumptions. This paper investigates rebalancing strategies by using resampling procedures from actual South African data in a way that captures the intrinsic high volatility nature of South African asset price movements. It considers the main consequences of calendar and range rebalancing strategies on tracking error, transaction costs and portfolio performance and demonstrates that range rebalancing has advantages over calendar rebalancing in the South African financial context using the comparative portfolio allocations of Firer, Peagram and Brunyee (2003). As such it provides a practical framework for South African portfolio managers to make informed choices on the appropriate approach for best-practice portfolio rebalancing. Journal: South African Journal of Accounting Research Pages: 59-80 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435153 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435153 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:59-80 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435154_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D Coetsee Author-X-Name-First: D Author-X-Name-Last: Coetsee Title: A comment on research frameworks applied in accounting research Abstract: In the social sciences three different research frameworks are used: positivistic, interpretative and critical. These frameworks approach research from different premises, which collectively contribute to the pool of knowledge. Accounting institutions and their activities are fashioned by human interventions whose perceptions of the truth change over time. Accounting information and its treatment, therefore, cannot be adequately interpreted through the deterministic or objective lens of a positivist framework. This article argues that there is a place for each of the different research frameworks in accounting research and in an attempt to foster debate in South Africa, the article identifies and explains the nature and the process of each social research framework with specific reference to the South African context. This article also comments briefly, where possible, on the research frameworks applied in accounting accredited journals of South Africa. Journal: South African Journal of Accounting Research Pages: 81-102 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435154 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435154 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:81-102 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435155_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B Marx Author-X-Name-First: B Author-X-Name-Last: Marx Author-Name: V van Dyk Author-X-Name-First: V Author-X-Name-Last: van Dyk Title: Sustainability reporting at large public sector entities in South Africa Abstract: Public sector entities are central to the delivery of sustainable development, and every aspect of their role shapes how people live their lives. This, together with the fact that they are under constant and growing pressure to operate in an environmentally friendly and sustainable manner, and to show their stakeholders that they provide good value for money, highlights the need for open, honest and reliable sustainable reporting to public sector stakeholders. The objective of the paper is twofold: it aims, firstly, to provide a brief overview of sustainability and sustainability reporting and how it impacts on public sector entities, and, secondly, to provide evidence regarding the sustainability reporting practices at large public sector entities in South Africa. This is done through a literature review of current corporate governance and sustainability developments in the private and public sector, supported by empirical evidence obtained from assessing, through content analysis, the sustainability reporting of the largest public sector entities in South Africa. The study found that sustainability reporting by public sector entities is still in its infancy, and that the reporting by the largest public sector entities in South Africa ranges from excellent to sub-standard. Journal: South African Journal of Accounting Research Pages: 103-127 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435155 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:103-127 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435156_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: W D Esterhuysen Author-X-Name-First: W D Author-X-Name-Last: Esterhuysen Author-Name: M Ward Author-X-Name-First: M Author-X-Name-Last: Ward Title: The information content of the Financial Mail’s “Top Companies” announcements Abstract: Investors look beyond accounting and financial data and incorporate factors relating to morality, society, the environment and corporate governance (inter alia) in making their investment choices. This study examines the share price performance of South African companies which best comply with the financial and qualitative criteria as prescribed in the Financial Mail’s “Top Companies” publication.Using event-study methodology, the abnormal and cumulative abnormal returns of companies recommended by analysts as “Top Companies” were examined. Positive, significant excess cumulative returns were observed for new entrants to the “Top Companies” sample after the publication date. Thereafter, negative returns were observed for the long-term post-publication holding period of up to 200 trading days.The results suggest that any new information related to the criteria in the FM “Top Companies” publication is of value, but only to short-term traders with low transaction costs. Long-term investors who buy these shares based on the recommendations of the FM analysts generally receive below market rates of return, suggesting that once companies have made it into the list, the value is overstated. Journal: South African Journal of Accounting Research Pages: 129-143 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435156 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435156 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:129-143 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435157_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E van Wyk Author-X-Name-First: E Author-X-Name-Last: van Wyk Title: A Note: The SAICA Part I Qualifying Examinations: Factors that may influence candidates’ success Abstract: The study investigates certain factors characterising successful and unsuccessful candidates in the 2009 and 2010 SAICA Part I Qualifying Examination (QE I) with the purpose of making recommendations to candidates, educators, training centres and to SAICA. The study also aims to serve as basis for future studies as to how the success rate of candidates in the QE I might be improved.Successful candidates tend to attempt the QE I at a young age, preferably prior to getting married and starting a family. Candidates’ chances of passing decrease with the number of exam attempts. Candidates with a first language of English or Afrikaans are more likely to be successful when writing the QE I. Finally, attending a Board Course prior to writing the examination might improve candidates’ success rate.SAICA, in collaboration with relevant RTO/ATO training centres, may consider providing/obtaining financial assistance to/for candidates who may not be able to attend Board Courses. The effect on candidates of having to study and attempt the QE I in a language other than their first language should be investigated and addressed. One way of addressing the issue may be that SAICA may consider making the QE I papers available in the two main black languages isiXhosa and isiZulu.Factors affecting the academic performance of candidates deserve more research. These include their scholastic background including the resource base of schools, candidates’ home environment, socio-economic background and possible inferior high-school education. Journal: South African Journal of Accounting Research Pages: 145-174 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435157 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:145-174 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435158_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Steenkamp Author-X-Name-First: G Author-X-Name-Last: Steenkamp Title: A Note: The perceptions of a CTA class regarding the changes to the international accounting standards dealing with financial instruments Abstract: The IASB has recently begun redeveloping the accounting standards that deal with financial instruments. During 2009 the IASB issued an exposure draft (ED 7/2009), which proposed certain changes to IAS 39. This study seeks to investigate the perceptions of a CTA class regarding these proposed changes. The study also compares the students’ responses to the South African Institute of Chartered Accountants (SAICA) comments as well as the final IFRS 9. In general, it was found that the students were positive about the proposed changes, and formulated valid opinions regarding aspects thereof - although their practical examples were limited. It was found that the perceptions of the students mostly corresponded to the SAICA comments, and even more so to the final IFRS 9 drafted. It is conjectured that including students in the evaluation of an exposure draft could be beneficial to both the process and the students themselves, as it could develop the students’ pervasive professional skills (such as critical thinking, life-long learning and change management) as required by the new Competency Framework: Detailed Guidance for Academic Programmes. Journal: South African Journal of Accounting Research Pages: 175-189 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435158 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:175-189 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435159_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: T F Prinsloo Author-X-Name-First: T F Author-X-Name-Last: Prinsloo Author-Name: M Oberholzer Author-X-Name-First: M Author-X-Name-Last: Oberholzer Title: A Note: Estimating the relationship between environmental performance and economic performance of South African mining companies Abstract: The purpose of the study is to determine the relationship between environmental performance and economic performance in the South African mining industry, where the economic performance consists of market-based and accounting-based estimates. In this regard, Spearman’s ranking-order correlation was applied. The study found that there is some contradiction in the direction of the relationship between accounting-based estimates and market-based estimates and their relationship with environmental performance. Furthermore, there is some contradiction in the direction of the relationship between economic performance and the environmental performance of the different mining sectors. The main limitation is that only a limited number of mining companies reported on environmental-related issues. Only ten mining companies provided sufficient annual data over a five-year period. The contribution of this study is that it pointed out that causation can be argued both ways between environmental performance and economic performance. When a change in the environmental performance influences the economic performance, it can be determined whether it does/does not pay to be green. This one-sided view, used in previous studies, presents probably only half of the bigger picture. Journal: South African Journal of Accounting Research Pages: 191-207 Issue: 1 Volume: 25 Year: 2011 Month: 1 X-DOI: 10.1080/10291954.2011.11435159 File-URL: http://hdl.handle.net/10.1080/10291954.2011.11435159 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:25:y:2011:i:1:p:191-207 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435161_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Steenkamp Author-X-Name-First: G Author-X-Name-Last: Steenkamp Title: The impact of study behaviour on the success of South African CTA students Abstract: In South Africa, prospective chartered accountants are required to complete a postgraduate course that is recognised as a Certificate of Theory in Accounting (CTA) in order to qualify to write Part 1 of the SAICA Qualifying Examination (QE1). Students often struggle to complete this course in the prescribed time period, which causes them financial loss and emotional distress. The aim of this research was to determine study behaviours that contribute to the successful completion of a CTA. These behaviours were identified using data collected from the CTA classes of five different universities (statistically analysing their CTA marks and reported study behaviour). The results show that the attendance of classes providing additional help improves students’ chances of success, and specific study behaviours that are linked to success include good examination techniques, learning from mistakes made in previous tests by analysing where you went wrong and practising questions under time pressure. Journal: South African Journal of Accounting Research Pages: 1-15 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435161 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435161 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435162_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K Barac Author-X-Name-First: K Author-X-Name-Last: Barac Title: The relationship between devoted study time and auditing learning approaches followed by prospective chartered accountants in South Africa Abstract: Learning approaches in accounting, distinguishing between deep, surface and strategic approaches, have been researched in several countries other than South Africa. The study reported in this article provided a South African perspective by investigating the auditing learning approaches of prospective chartered accountants in relation to time they spent studying during their final university postgraduate programme and their preparation for auditing topics examined in the first part of their professional accounting qualifying examination. The widely accepted research instrument, the Approaches and Studies Skills Inventory for Students (ASSIST), was applied. Statistical analysis revealed a preference for the strategic approach by candidates who passed the auditing question in the South African Institute of Chartered Accountants’ 2010 Qualifying Examination Part 1. The study found that those who devoted more time were more inclined to follow a strategic or deep approach, while less devoted study time resulted in a surface approach. Various areas for future research were identified. Journal: South African Journal of Accounting Research Pages: 17-42 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435162 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435162 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:17-42 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435163_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L C Smith Author-X-Name-First: L C Author-X-Name-Last: Smith Author-Name: J Pym Author-X-Name-First: J Author-X-Name-Last: Pym Author-Name: V Ranchhod Author-X-Name-First: V Author-X-Name-Last: Ranchhod Title: Explaining the first-year academic performance of commerce academic development students: A statistical analysis Abstract: Academic development students’ academic performance in the first-year accounting degree is influenced by a range of personal and contextual variables. The objective of this paper is to conduct an exploratory investigation of a selection of these variables in order to determine why some students perform better than others. A multiple regression analysis model is used to identify statistically significant relationships between students’ academic performance and demographic, academic, home, school and environmental factors. The results suggest that students’ academic performance in their first year is positively influenced by their performance in the school-leaving examination, motivation, and being a member of the Thuthuka programme. Conversely, students’ academic performance is negatively influenced for male students, and by HIV/Aids and parental discipline. Journal: South African Journal of Accounting Research Pages: 43-65 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435163 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435163 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:43-65 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435164_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C Correia Author-X-Name-First: C Author-X-Name-Last: Correia Author-Name: G Holman Author-X-Name-First: G Author-X-Name-Last: Holman Author-Name: A Jahreskog Author-X-Name-First: A Author-X-Name-Last: Jahreskog Title: The corporate use of derivatives: a survey of South Africa’s large listed non-financial firms Abstract: This paper presents the results of a comparative questionnaire survey of derivative use by South African companies. The objective was to determine the extent of derivative use and to examine how and why companies use derivatives. Derivative use by South African companies compares favourably to the level of derivative use in developed countries. The risk most often hedged is currency exposure followed by interest rate risk. Commodity producers tend to hedge commodity price risk. Companies mainly use forwards to hedge exchange rate risk whilst swaps dominate in the hedging of interest rate risk. Companies mainly use derivatives to hedge contractual obligations and rarely use derivatives to take a view on market movements. Concerns relate to transaction costs, investor perceptions, and credit and liquidity risks. Companies indicated that they would, if permitted, hedge expected as compared to actual future currency exposure. Journal: South African Journal of Accounting Research Pages: 67-94 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435164 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435164 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:67-94 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435165_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L van Staden Author-X-Name-First: L Author-X-Name-Last: van Staden Author-Name: N van der Merwe Author-X-Name-First: N Author-X-Name-Last: van der Merwe Title: Capitalisation of borrowing costs: An investigation into technical uncertainties in IAS 23 Abstract: Those who are not experts in the field of accounting will most probably be of the opinion that interest should be expensed and therefore reduce profits. However, for financial periods beginning on or after 1 January 2009, the capitalisation of borrowing costs (interest) incurred on certain qualifying assets became mandatory for companies applying International Financial Reporting Standards (IFRS). Apart from the practical implications of this change, some technical questions remain unanswered by IAS 23 Borrowing Costs, and since it is now mandatory to capitalise borrowing costs, it might be worthwhile to take a deeper look at the requirements of this standard. The study reveals that knowledgeable Financial Accounting academics were quite divided in their opinions regarding the finer technical details of the revised standard, for example the period that constitutes a “substantial period of time” as mentioned in the standard when defining qualifying assets. These differences in opinion might prove that accountants with equal knowledge may interpret the standard differently, which might lead to confusion and inconsistency in external reporting; to at least some degree a possible infringement of the modern plea towards accounting harmonisation. The findings of this research could prompt standard-setters to provide clearer guidance in the revision of future standards on borrowing costs in various different accounting frameworks, or even of other standards with similar uncertainties. In the instances where participants did agree on the correct accounting treatment, the findings in this research could also be used as guidance for what the correct accounting treatment should be for various scenarios. This could be useful, amongst others, to accountants in practice, auditors, textbook and guidance document authors, university lecturers and providers of continuing professional development (CPD) training. Journal: South African Journal of Accounting Research Pages: 95-117 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435165 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435165 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:95-117 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435166_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: H du Preez Author-X-Name-First: H Author-X-Name-Last: du Preez Author-Name: C S du Preez Author-X-Name-First: C S Author-X-Name-Last: du Preez Title: Taxation students’ perceptions of open-book assessment prior to the qualifying examination of South African chartered accountants Abstract: In this study taxation students’ perceptions of open-book assessment, prior to their exposure to open-book assessment in the qualifying examination of South African chartered accountants, is explored. A focus group was conducted using the Interactive Qualitative Analysis methodology. In this focus group, taxation students without prior exposure to open-book assessment identified their perception themes (also referred to as affinities) on open-book assessment. These affinities were grouped together and described by them as: good preparation, back-up, encouragement, general advantages, improved quality of answers, negative symptoms, negative environment, personal experience and hindrance, different approach and time management. The students then identified relationships between these different affinities. These relationships were summarized and reflected on a System Interrelationship Diagram, giving a visual map of the students’ perceptions.Findings from the System Interrelationship Diagram indicated that students perceive good preparation as the strongest driver for successful completion of an open-book assessment. This System Interrelationship Diagram showed three primary outcomes namely negative symptoms, different approach and time management. This implies that students perceived that open-book assessment may create laziness (negative symptom) in students leading to a different approach when preparing for and completing such assessments. Finally, they concluded that successful completion of an open-book assessment necessitates proper time management. Journal: South African Journal of Accounting Research Pages: 119-142 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435166 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435166 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:119-142 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435167_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J J Roeleveld Author-X-Name-First: J J Author-X-Name-Last: Roeleveld Title: An argument for either excluding death as a capital gains tax event or abolishing estate duty Abstract: South Africa is one of the few countries in the world that imposes both estate duty and capital gains tax on the assets of a person on death. This paper presents an argument for the abolishment of estate duty in South Africa or, in the alternative, making the act of dying a non-taxable event for capital gains tax purposes. While certain political considerations may play a role, this paper also demonstrates, by referring to the recommendations of previous commissions of inquiry into the tax system of South Africa, that the imposition of both capital gains tax and estate duty on death currently has no basis as this was never a policy decision and not recommended by previous commissions. Estate Duty has existed from 1955 and since then the basis of taxation in South Africa changed from source to residence and in 2001 capital gains tax was introduced. The paper also demonstrates, by way of an example, what the impact is of levying the two forms of taxation simultaneously on the death of a person. In order to remove one of these taxes levied on the death of a taxpayer, certain sections of the Income Tax Act would have to be revised and are highlighted in the paper or, in the alternative, the Estate Duty Act would have to be repealed. A brief insight into what taxes are imposed by certain foreign jurisdictions on death is also provided in order to further substantiate the recommendation to abolish one of the two taxes on the death of a person. Journal: South African Journal of Accounting Research Pages: 143-164 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435167 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:143-164 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435168_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: P de Jager Author-X-Name-First: P Author-X-Name-Last: de Jager Author-Name: S Parsons Author-X-Name-First: S Author-X-Name-Last: Parsons Author-Name: J J Roeleveld Author-X-Name-First: J J Author-X-Name-Last: Roeleveld Title: A commentary on SARS’ proposed fair value tax on financial instruments Abstract: On 5 July 2012 the South African National Treasury released its draft Taxation Laws Amendment Bill, which included the proposed insertion of section 24JB into the Income Tax Act. The proposed section will require all banks, company members of the JSE Securities Exchange (stockbrokers) and hedge funds to include in or deduct from their taxable income amounts in respect of financial assets and financial liabilities (as defined) according to the profit recognised on those instruments in terms of International Financial Reporting Standards. The effect will be to introduce a fair value tax on the financial instruments of those entities, within the scope of the proposed section. This constitutes a significant change from the current approach that is mostly realisation based. South Africa is not the first country to consider the introduction of a fair value tax on financial instruments, therefore there is precedent. However, both the timing and the approach of the proposal are possibly problematic.This paper discusses the theoretical tax and economic implications of this proposal and attempts to identify positive and negative potential outcomes. A number of unanswered questions are raised that should be addressed before such legislation can be effectively introduced in South Africa. Interview evidence obtained from tax forum meetings, as well as the tax department of one of the banks that would fall within the scope of this legislation, is used to augment the interpretation of this proposal The main findings are that the postulated benefits of the change are unlikely to be realised, that the proposed greater reliance on accounting figures can have unintended consequences and that taxpayers within the scope of the proposed section will lose the benefit of capital gains tax on certain items. Journal: South African Journal of Accounting Research Pages: 165-184 Issue: 1 Volume: 26 Year: 2012 Month: 1 X-DOI: 10.1080/10291954.2012.11435168 File-URL: http://hdl.handle.net/10.1080/10291954.2012.11435168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:26:y:2012:i:1:p:165-184 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435169_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J Winfield Author-X-Name-First: J Author-X-Name-Last: Winfield Author-Name: J Luyt Author-X-Name-First: J Author-X-Name-Last: Luyt Title: An evaluation of an exploratory intervention to improve progression in a first-year accounting course Abstract: South African universities face pressure to increase the throughput of accounting students, with a special emphasis on expanding the number of female and black graduates. To improve the progression of at-risk first-year second-semester accounting students, an intervention known as JumpStart was implemented at the Faculty of Commerce at the University of Cape Town (UCT) in 2010. JumpStart involved the allocation of skilled instructors, additional workshops, student mentors and a study skills course, thus employing a wide range of factors known to influence student success: academic, psychological and social. The intervention was evaluated using analyses of student academic performance and responses to a programme evaluation. In 2008 and 2009, only 23% and 29% of at-risk students performed well enough to progress to second-year accounting. By contrast, in 2010, 71% of JumpStart students were eligible to progress. For each gender and ethnic category, progression rates for JumpStart students were superior to those for non-JumpStart students, with the most significant improvements being made by female students and white students. An unexpected finding was a significant improvement in the progression rates of non-JumpStart at-risk students when compared with previous years, which may be at least partially explained by the weakest at-risk students choosing to join JumpStart. The responses to the programme evaluation indicated that students valued the allocation of skilled instructors and the provision of additional workshops above the other components of the intervention. A considerable difference existed between the way in which black and white students valued the study skills course and the mentor groups, with black students valuing these components of the intervention much more. Journal: South African Journal of Accounting Research Pages: 1-36 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435169 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435169 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:1-36 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435170_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: H Muller Author-X-Name-First: H Author-X-Name-Last: Muller Author-Name: A du Plessis Author-X-Name-First: A Author-X-Name-Last: du Plessis Title: The impact of a quality, technology-enhanced teaching support medium on student success in a first-year financial accounting module at an open distance learning institute Abstract: In South Africa, the Department of Higher Education and Training (DoHET) has expressed grave concerns about the poor pass rate of first-year accounting students. In an attempt to improve performance, the University of South Africa (Unisa), an open distance learning (ODL) institution, has developed a DVD for the first-year semester module, FAC1502, in financial accounting. This module forms the cornerstone of financial accounting at Unisa and is a prerequisite for all bachelor degrees in commerce and many related courses. FAC1502 has a total annual average registration of 13 000 students. The DVD, a multimedia, technology-enhanced learning support tool, complements flexible teaching and learning and presents a practical workshop for students to study at their own pace and equip them with the necessary basic theory, practical applications and financial accounting skills which underlie further course work.This article reports on the impact of student utilisation of the DVD as a probable effective multimedia intervention towards an improved student pass rate in the FAC1502 semester module. The assessment of the DVD effectiveness takes the quality of the DVD into consideration, as measured against quality standards of regulating bodies such as the College of Economics and Management Sciences (CEMS) of Unisa, SAQA standards and outcomes based guidelines of Unisa and the Department of Higher Education and Training (DoHET). The fact that, barring DVD utilization, other factors – such as a success/ at-risk student profile – might affect student performance and confound the effect of DVD utilization on performance, was catered for in the sampling technique applied in the study.In an ODL environment, a teaching and learning support tool which promotes practical accounting knowledge in a real-life context ensures an innovative way of teaching and supporting students. Journal: South African Journal of Accounting Research Pages: 37-57 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435170 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435170 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:37-57 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435171_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B Marx Author-X-Name-First: B Author-X-Name-Last: Marx Author-Name: A van der Watt Author-X-Name-First: A Author-X-Name-Last: van der Watt Title: Sustainability in accounting education: An analysis of the teaching thereof at accredited South African universities Abstract: Accountants and auditors are key role players in the financial world and society at large and as such can play a vital role in fostering awareness of sustainability and creating sustainable business practices. The issue of sustainability in accounting education is a rather new theme, and academics are still exploring how to incorporate the concept into their curricula and finding the best ways to teach it. The objective of the paper is twofold: it aims, firstly, to provide a brief overview of the development of corporate governance, sustainability and corporate citizenship, and the higher education developments surrounding this, and secondly to provide evidence regarding the teaching of these aspects. This was done through a literature review and supported by empirical evidence obtained from questionnaires sent to the accountancy departments of the universities accredited by the South African Institute of Chartered Accountants. The study found that although the concept of sustainability is generally well established and researched, limited research has been done to date on how it is covered in accounting education, and the empirical findings further indicate that room for improvement exists on how accounting departments incorporate this into their curricula, teaching and assessments. Journal: South African Journal of Accounting Research Pages: 59-86 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435171 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:59-86 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435172_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: I Lubbe Author-X-Name-First: I Author-X-Name-Last: Lubbe Title: Educating accounting professionals: Development of a theoretical framework as a language of description of accounting knowledge production and its implications for accounting academics at South African universities Abstract: Many accounting academics in South Africa encounter tension between the core academic requirements of research and teaching. A range of factors identified by this study contributes to the existence of this tension. These include the South African Institute of Chartered Accountants’ (SAICA) firm role in controlling the curriculum of the professionally-orientated programmes, the requirement by universities that all academics should produce research, the need by the profession for quality students with good technical skills, and the emphasis on transformation of higher education in the developing economy of South Africa.The theoretical framework developed in this study, which is based on Bernstein’s (1996) pedagogic device, identifies the different constructions of knowledge in the Accounting discipline. Additionally, it provides a language of description for the conversion of new and existing knowledge into pedagogic discourse. Boyer’s (1990) four domains of scholarship link closely with Bernstein’s pedagogic device, and illuminate the permeable boundaries between the different fields, confronting the weary ‘teaching versus research’ debate, and defining what it means to be a scholar.The study identifies the different dimensions of scholarship in which Accounting academics are involved, which is considered both valid and highly valued by members of the Accounting profession. It is recommended that universities, who wish to retain their status of producing students who meet the quality demands of a profession, need to develop scholarship and teaching expertise and to reward excellence in academic teaching on professional programmes Journal: South African Journal of Accounting Research Pages: 87-124 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435172 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435172 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:87-124 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435173_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: W M Badenhorst Author-X-Name-First: W M Author-X-Name-Last: Badenhorst Title: The relationship between conservatism in financial reporting and subsequent equity returns Abstract: This study investigates whether or not long-term discretionary accounting conservatism has benefits for equity investors, as measured by long-term subsequent equity returns. Based on the long-term relationship between cash flows and earnings documented by Dechow (1994), this paper develops a new proxy for discretionary accounting conservatism. This proxy utilises earnings before interest and tax and cash flow generated by operations, highlighting conservative discretion within earnings. Importantly, and in contrast to prior research, this study controls for market assessments of the growth prospects of sample firms and finds that discretionary accounting conservatism is insignificantly related to subsequent equity returns, once market assessments of growth prospects have been controlled for. Compensating for cross-sectional differences, based on the relative gearing of firms, reveal that the relationship between subsequent equity returns and discretionary accounting conservatism remains insignificant, regardless of the level of gearing of the sample firm. Journal: South African Journal of Accounting Research Pages: 125-142 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435173 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:125-142 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435174_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A de Graaf Author-X-Name-First: A Author-X-Name-Last: de Graaf Author-Name: A J Pienaar Author-X-Name-First: A J Author-X-Name-Last: Pienaar Title: Synergies in mergers and acquisitions: A critical review and synthesis of the leading valuation practices Abstract: Research demonstrates that mergers and acquisitions (M&As) of business entities may create synergies – Igor Ansoff’s “2 + 2 = 5 effect” – but, crucially, that this is by no means guaranteed. Studies further show that in successful cases, synergies frequently accrue to the target company’s shareholders only, principally as a result of the payment of outsized M&A premiums by the acquirer. Remarkably, payment of these premiums is often justified by a mere notion of synergy. These factors, together with a void in the literature, and the significant amounts invested in M&As, create a critical need for a comprehensive description of superior ways of valuing M&A synergies before committing to a transaction. This study aims to make a contribution in this regard by classifying certain practices as leading valuation practices by means of a critical literature review, and by synthesising these into the following logical groupings: (1) practices part of the overall M&A process, affecting synergy valuation; (2) practices with a universal application in valuing M&A synergy; and (3) valuation practices linked to specific origins of synergy. The origins of synergy explored in this study include: scale economies; economies of scope; managerial efficiencies; economies of the capital market; economies in innovative activity; and other more contentious origins, including tax savings, and market power. Certain valuation practices are also recommended, where appropriate. Research in this area is relevant because any enhancement in the accuracy of M&A synergy valuation ex ante should improve the selection of worthwhile M&A targets. Better choices in this area may then represent a positive step towards sustainable business practice. Journal: South African Journal of Accounting Research Pages: 143-180 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435174 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435174 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:143-180 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11435175_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L Bakoro Author-X-Name-First: L Author-X-Name-Last: Bakoro Author-Name: P de Jager Author-X-Name-First: P Author-X-Name-Last: de Jager Author-Name: S Parsons Author-X-Name-First: S Author-X-Name-Last: Parsons Title: Commentary: How accounting information is used by the South African Bank Regulator Abstract: Fair value accounting has been named by some as a role-player in the recent financial crisis. The initial defensive argument that accounting is only a messenger is easily dispelled by considering its vital role in banking and bank supervision, as well as its real-world implications. Yet, a second argument deserving further scrutiny states that prudential filters under the Basel Accords neutralise most fair value accounting gains and losses, which limits this source of volatility. Using South Africa as a representative case, this study compares evidence from (1) a questionnaire, (2) a key informant interview and (3) regulatory publications to investigate the use of accounting information in bank supervision, and to test whether all fair value gains and losses are, in fact, neutralised. This study found that fair value gains and losses through profit and loss (under IAS 39 (2010)) have not been neutralised by the South African regulator in its application of the Basel II framework since January 2008. A strong disconnect between the need for prudent information by regulators and the neutral information provided by accounting is also identified. Significantly, the results of this study dispel a core argument which so far has helped to shield fair value accounting from blame, but the importance is tempered by the fact that only South African evidence was considered. Journal: South African Journal of Accounting Research Pages: 181-203 Issue: 1 Volume: 27 Year: 2013 Month: 1 X-DOI: 10.1080/10291954.2013.11435175 File-URL: http://hdl.handle.net/10.1080/10291954.2013.11435175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:27:y:2013:i:1:p:181-203 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11463124_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S Fourie Author-X-Name-First: S Author-X-Name-Last: Fourie Author-Name: E Contogiannis Author-X-Name-First: E Author-X-Name-Last: Contogiannis Title: The Impact of Business Ethics Education on Attitudes Toward Corporate Ethics of BCom. Accounting Students at the University of Zululand Abstract: Corporate Ethics have been the focus of attention in recent years. This is predominantly due to the prevalence of corporate scandals and abundance of unethical behaviour portrayed by prominent individuals. The need for ethical leaders in business is undisputed, but how this can be achieved is more difficult to determine. This study seeks to assess the impact of business ethics education on students’ attitudes toward corporate ethics.The study found the business ethics course presented to have little effect on students’ attitudes as measured by the survey instrument, but some students reported to have found the information presented challenging and life changing.As significant resources are allocated to the teaching of ethics it would be prudent to conduct further research into the effectiveness thereof. The purpose of such being to develop a standard of best practice in the teaching of ethics rather than to justify not doing so. Journal: South African Journal of Accounting Research Pages: 1-23 Issue: 1 Volume: 28 Year: 2014 Month: 1 X-DOI: 10.1080/10291954.2014.11463124 File-URL: http://hdl.handle.net/10.1080/10291954.2014.11463124 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:28:y:2014:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11463125_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E Papageorgiou Author-X-Name-First: E Author-X-Name-Last: Papageorgiou Author-Name: C Callaghan Author-X-Name-First: C Author-X-Name-Last: Callaghan Author-Name: D Coldwell Author-X-Name-First: D Author-X-Name-Last: Coldwell Author-Name: T Joosub Author-X-Name-First: T Author-X-Name-Last: Joosub Title: Perceptions Among Professional Accounting Students of Self, Job Attractiveness and Academic Reputation Abstract: Discussions around career pathways have gained momentum in the field of career development to assist young people in mapping out their career choices in order to achieve meaningful and productive futures. The purpose of the study was to empirically investigate third-year accounting students’ perceptions of the comparative worth and the utility of a career choice based on one of four accounting major subjects. The four compulsory subjects are offered on the professional degree to become a Chartered Accountant (CA) offered at the University of the Witwatersrand. The research design was descriptive and cross-sectional. Results were discussed in terms of existing theory, with both internal and external factors considered. Findings indicated that financial management accounting was the dominant career choice option, followed by taxation. The value of the study resides in the insights gained regarding the salience of various career perceptions among professional accounting students. Journal: South African Journal of Accounting Research Pages: 25-40 Issue: 1 Volume: 28 Year: 2014 Month: 1 X-DOI: 10.1080/10291954.2014.11463125 File-URL: http://hdl.handle.net/10.1080/10291954.2014.11463125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:28:y:2014:i:1:p:25-40 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11463126_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D Penkin Kenneth Author-X-Name-First: D Penkin Author-X-Name-Last: Kenneth Title: Remuneration Committees in South African Listed Companies Abstract: This article examines the administration of executive compensation in listed South African companies in order to understand the background to the emotive expressions by the public concerning the amount of executive earnings. It conducts research in order to ascertain whether a Remuneration Committee (RC) is effective. It begins by looking at the history of limited information disclosure which existed before the 1990s and describes cases where companies suffered losses due to the Agency Theory (AT) when executives dominated boards. This was followed by the subsequent introduction and application of Corporate Governance and controls to a RC. The discussion is based on the available literature and the findings from interviews and an electronic survey that was dispatched to a large selection of listed companies. A variety of views indicate fresh thoughts on the topicality of the relatively new concepts surrounding RCs which enquiries and interviews have shown are not well understood. Thus the study fills the gap in knowledge on RCs. Journal: South African Journal of Accounting Research Pages: 41-64 Issue: 1 Volume: 28 Year: 2014 Month: 1 X-DOI: 10.1080/10291954.2014.11463126 File-URL: http://hdl.handle.net/10.1080/10291954.2014.11463126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:28:y:2014:i:1:p:41-64 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11463127_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: U Efobi Author-X-Name-First: U Author-X-Name-Last: Efobi Author-Name: P Okougbo Author-X-Name-First: P Author-X-Name-Last: Okougbo Title: Timeliness of Financial Reporting in Nigeria Abstract: This study explored the factors that can influence the timeliness of financial reporting in Nigeria using a sample of 33 financial institutions (2005–2008). The Generalized Least Square (GLS) regression method was used for the estimation and the results reveal that on the average, the sampled companies used 122 days after the year end for the release of their financial reports. The size, leverage and performance of the companies have a negative significant relationship with the timeliness of their financial reports while the age of the company has a positive significant impact. Corporate governance plays a complementary role with some of the explanatory variables to explain financial reporting timeliness in Nigeria. Journal: South African Journal of Accounting Research Pages: 65-77 Issue: 1 Volume: 28 Year: 2014 Month: 1 X-DOI: 10.1080/10291954.2014.11463127 File-URL: http://hdl.handle.net/10.1080/10291954.2014.11463127 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:28:y:2014:i:1:p:65-77 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11463128_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L J Stainbank Author-X-Name-First: L J Author-X-Name-Last: Stainbank Title: Factors Influencing the Adoption of International Financial Reporting Standards by African Countries Abstract: The purpose of this paper is to identify the factors which may influence the adoption of the International Financial Reporting Standards (IFRS) by African countries. Using previous literature, the following factors were identified: economic growth, education level, economic openness, culture and the relative capital market size.All countries in Africa were selected. However, in view of the difficulties in obtaining data for all countries, only 32 African countries comprised the data set. A logistic regression analysis was thereafter conducted.The results indicate that as African countries begin to grow at a quicker rate, they are more likely to adopt IFRS. Countries with relatively higher levels of market capitalization are also more likely to adopt IFRS. The culture variable was the most significant of the explanatory variables, suggesting that African countries with cultural ties to the United Kingdom are significantly more likely to adopt IFRS than those with no such cultural ties. Journal: South African Journal of Accounting Research Pages: 79-95 Issue: 1 Volume: 28 Year: 2014 Month: 1 X-DOI: 10.1080/10291954.2014.11463128 File-URL: http://hdl.handle.net/10.1080/10291954.2014.11463128 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:28:y:2014:i:1:p:79-95 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_11463129_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M Marcus Author-X-Name-First: M Author-X-Name-Last: Marcus Author-Name: F Toerien Author-X-Name-First: F Author-X-Name-Last: Toerien Title: The Relative Cost of Internal vs. External Equity in South Africa: The Impact of Capital Gains and Dividend Taxes Abstract: In order to investigate the impact of South Africa’s unique historical secondary tax on companies (STC) on optimal capital structure, we adapt the US methodology developed by Lewellen and Lewellen (2006) to cater for STC. Using our derived STC-models, we examine the combined effect of South Africa’s capital gains tax and, respectively, its historical and current dividend tax regimes, on the relative costs of internal and external equity, and thus the theoretical optimal South African capital structure both historically and currently. We examine the expected position of each of these areas in light of South Africa’s transition from STC to the new shareholder dividend tax (SDT) regime that replaced it on 1 April 2012. We conclude that there is a net tax benefit to utilising internal equity under certain conditions and that firm financing and payout decisions that ignore this benefit are fundamentally incomplete. Journal: South African Journal of Accounting Research Pages: 97-116 Issue: 1 Volume: 28 Year: 2014 Month: 1 X-DOI: 10.1080/10291954.2014.11463129 File-URL: http://hdl.handle.net/10.1080/10291954.2014.11463129 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:28:y:2014:i:1:p:97-116 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_999451_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Saman Mohammadi Author-X-Name-First: Saman Author-X-Name-Last: Mohammadi Author-Name: Mohammad Monfared Maharlouie Author-X-Name-First: Mohammad Monfared Author-X-Name-Last: Maharlouie Author-Name: Sepideh Kazemi Noori Author-X-Name-First: Sepideh Kazemi Author-X-Name-Last: Noori Title: Audit firm rotation and audit report: evidence from the Tehran Stock Exchange Abstract: This research is an attempt to study the relationship between audit firm rotation and audit reports in companies listed on the Tehran Stock Exchange from 2003 to 2011. Due to the nominal nature of the variables, this study uses a non-parametric chi square distribution test to analyse the collected data. The results indicate that there is a significant relationship between the independent audit firm rotation and audit reports in the companies listed on the Tehran Stock Exchange. In addition, regarding the type of audit firm rotation, the results of the null hypothesis tests implicate that there is no significant relationship between these two variables in the companies under study. Journal: South African Journal of Accounting Research Pages: 1-12 Issue: 1 Volume: 29 Year: 2015 Month: 1 X-DOI: 10.1080/10291954.2015.999451 File-URL: http://hdl.handle.net/10.1080/10291954.2015.999451 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:1:p:1-12 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_999470_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Karen Bargate Author-X-Name-First: Karen Author-X-Name-Last: Bargate Title: Multiple interventions in a managerial accounting and financial management tutorial programme to enhance understanding Abstract: This paper emanates from a study which focused on Managerial Accounting and Financial Management (MAF) students’ experiences of learning in a Writing Intensive Tutorial (WIT) programme. Often students do not fully grasp the underlying disciplinary concepts and struggle to transfer knowledge from one context to another. The WIT programme was based on the principle of using informal exploratory writing – writing-to-learn – to support students’ learning and understanding of MAF concepts. The participants in the study were 15 MAF students who voluntarily participated in an 18-week WIT programme. Interactive Qualitative Analysis (IQA) was used for the research design and as a data analysis tool. Following IQA protocols, nine affinities (themes) were generated to describe students’ experiences of learning in the WIT programme. This paper considers the students’ experiences of the affinity “understanding” of MAF concepts. The findings suggest that introducing writing-to-learn assignments impacts positively on students’ experiences of understanding MAF concepts. A writing programme legitimises writing in a MAF classroom and uses techniques which enhance understanding of concepts, and the concomitant benefits are improved communication skills without sacrificing course content. Journal: South African Journal of Accounting Research Pages: 13-28 Issue: 1 Volume: 29 Year: 2015 Month: 1 X-DOI: 10.1080/10291954.2015.999470 File-URL: http://hdl.handle.net/10.1080/10291954.2015.999470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:1:p:13-28 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_999471_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Henriëtte Scholtz Author-X-Name-First: Henriëtte Author-X-Name-Last: Scholtz Author-Name: Anna-Retha Smit Author-X-Name-First: Anna-Retha Author-X-Name-Last: Smit Title: Factors influencing corporate governance disclosure of companies listed on the Alternative Exchange (AltX) in South Africa Abstract: This article examines the various factors that influence the level of conformance with corporate governance recommendations for companies listed on the Alternative Exchange (AltX) in South Africa. To achieve this objective, a corporate governance disclosure index was developed by examining the extent to which AltX companies apply the corporate governance recommendations as set out in King II and King III. The corporate governance disclosure index was then regressed on a number of corporate governance and firm characteristics to determine the influence of various factors on the level of conformance with corporate governance recommendations. It was found that larger companies, where the CEO and chairman of the board are separate, companies with an independent audit committee and companies with higher debt levels are more likely to conform to corporate governance recommendations. There is no evidence that levels of corporate governance conformance are influenced by the growth and profitability of companies, or by corporate governance characteristics, such as the independence of the board. Journal: South African Journal of Accounting Research Pages: 29-50 Issue: 1 Volume: 29 Year: 2015 Month: 1 X-DOI: 10.1080/10291954.2015.999471 File-URL: http://hdl.handle.net/10.1080/10291954.2015.999471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:1:p:29-50 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_999472_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: David Bradfield Author-X-Name-First: David Author-X-Name-Last: Bradfield Author-Name: Yashin Gopi Author-X-Name-First: Yashin Author-X-Name-Last: Gopi Author-Name: Joan Tshivhinda Author-X-Name-First: Joan Author-X-Name-Last: Tshivhinda Title: The role of South African property in balanced portfolios Abstract: The overriding objective of this paper is to establish the features that South African property brings to a balanced portfolio – and importantly to give insight into a strategic investment weight for this asset class. We acknowledge that listed and unlisted property are potentially two different asset classes and we conduct analysis on both listed and unlisted property. Using a mean-variance approach we find that listed property elevates the efficient frontier across the entire spectrum of risks having allocation weights in excess of 20% across typical risk mandates. Our non-parametric optimisation approach yields an optimal allocation to listed property of 23%, significantly higher than found in local pension funds. Using a non-parametric approach for tactical allocation considerations in differing economic regimes, we find there is indeed scope for tactical asset allocation to the listed property asset class. Considering the role of unlisted property separately in a balanced portfolio setting we find that unlisted property plays a diversification role in low-risk portfolios. However we find its role in optimal portfolios is less clear as it tends to be substituted by listed property. Journal: South African Journal of Accounting Research Pages: 51-70 Issue: 1 Volume: 29 Year: 2015 Month: 1 X-DOI: 10.1080/10291954.2015.999472 File-URL: http://hdl.handle.net/10.1080/10291954.2015.999472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:1:p:51-70 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_999473_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Eloise de Jager Author-X-Name-First: Eloise Author-X-Name-Last: de Jager Title: IFRS 3 “grey area” regarding contingent liabilities Abstract: All South African listed companies must prepare their financial statements using International Financial Reporting Standards (IFRS). Although IFRS aims to provide a framework that can be applied to ensure comparable financial information, there are “grey areas” where judgement needs to be applied. One such area, relating to the classification of contingent liabilities (specifically pending lawsuits) in a business combination, is explored during this research. A survey was distributed to the Top 40 Johannesburg Stock Exchange (JSE) companies presenting different scenarios regarding lawsuits. The company's views on whether the specific scenario presented a possible obligation (which would not be recognised in a business combination) or a present obligation (which would be recognised) was gathered. Some statistically significant differences in opinion were noted between the companies, which could have significant implications on goodwill calculations in a business combination. The International Accounting Standards Board (IASB) have proposed changes to IAS 37 that could reduce this uncertainty and differences in interpretation, but until such time the treatment of pending lawsuits in a business combination continues to remain a grey area in IFRS. Journal: South African Journal of Accounting Research Pages: 71-83 Issue: 1 Volume: 29 Year: 2015 Month: 1 X-DOI: 10.1080/10291954.2015.999473 File-URL: http://hdl.handle.net/10.1080/10291954.2015.999473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:1:p:71-83 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_999457_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hanneke Du Preez Author-X-Name-First: Hanneke Author-X-Name-Last: Du Preez Title: Taxation students’ perceptions of open-book assessment: a follow-up interactive qualitative analysis Abstract: Students’ perceptions of a particular assessment type seems to influence their attitude to preparing for and taking the assessment. The literature suggests that open-book assessment allows a better understanding of the content of a subject area, thus better preparing students for real-life situations. Hence, this study sought an in-depth understanding of taxation students’ perceptions of open-book assessment in the process of qualifying as chartered accountants. Using already published findings on a focus group of taxation students’ perceptions prior to exposure to open-book assessment, an interactive qualitative analysis (IQA) method was again adopted to analyse interviews with taxation students on their perceptions of open-book assessment after exposure to such assessment. The new findings were compared to those for the focus group. The affinities that emerged from the focus group study elicited various comments from the interviewees. One difference between the two groups was that the focus group saw the different approach affinity as the final outcome of the system created by the IQA, while the interviewees regarded this affinity as the system's primary starting point. Secondary differences between the two groups pertained to the affinities encouragement, improved quality of answers, negative environment and time management. The groups agreed on good preparation, back-up, general advantages and negative symptoms of open-book assessment. This study concludes that when students need to be prepared for open-book assessment, the different approach affinity should be a point of departure. Journal: South African Journal of Accounting Research Pages: 84-99 Issue: 1 Volume: 29 Year: 2015 Month: 1 X-DOI: 10.1080/10291954.2015.999457 File-URL: http://hdl.handle.net/10.1080/10291954.2015.999457 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:1:p:84-99 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006481_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Riaz Dhai Author-X-Name-First: Riaz Author-X-Name-Last: Dhai Title: A comparison of the performance of the FTSE South Africa Islamic Index to the conventional market (JSE) in South Africa Abstract: Over the past four decades there has been a growing interest in the emerging field of Islamic finance and investment (IFI) in South Africa and more generally in other parts of the Western world. One of the distinguishing features of IFI is that investment in any form of business enterprise has to meet certain criteria that fulfil the requirements of Islamic Law (Shariah). In South Africa there has accordingly been a concerted effort to embrace the principles of IFI in the market. The aim of this study is to identify whether there has been any difference in the financial performance of shares on the stock exchange meeting the Islamic investing criteria compared to those that do not, within an emerging market context. The proxy for the Islamic market is the Financial Times Stock Exchange (FTSE) South Africa Islamic Index. The returns on this index are compared to three proxies for the conventional market from 1996 to 2007 using single and multiple regression models: (1) the All Share Index on the Johannesburg Stock Exchange (JSE) in a single-factor regression; (2) the Resources Index and Financial-Industrial Index in a two-factor model; (3) and a four-factor model developed by Carhart (1997) that accounts for size, growth and momentum in the market in addition to the All Share Index. Looking at all three measures, no significant differences were identified in the performance of the Islamic index compared to that of the conventional market. Journal: South African Journal of Accounting Research Pages: 101-114 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006481 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:101-114 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006482_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hamutyinei Harvey Pamburai Author-X-Name-First: Hamutyinei Author-X-Name-Last: Harvey Pamburai Author-Name: Eddie Chamisa Author-X-Name-First: Eddie Author-X-Name-Last: Chamisa Author-Name: Cader Abdulla Author-X-Name-First: Cader Author-X-Name-Last: Abdulla Author-Name: Colin Smith Author-X-Name-First: Colin Author-X-Name-Last: Smith Title: An analysis of corporate governance and company performance: a South African perspective Abstract: This study examines the relationship between corporate governance mechanisms and company performance as measured by economic value added (EVA), return on assets (ROA) and Tobin's Q. A multiple regression model is used to compare the association between corporate governance mechanisms and company performance for 158 companies listed on the JSE Securities Exchange (formerly known as the Johannesburg Stock Exchange) for the year 2012. We report four main results. First, board size is found to be negatively and significantly related to EVA suggesting that firms with smaller boards perform better than those with larger boards. Second, the relationship between Tobin's Q and the proportion of non-executive directors (NEDs) on the board is both positive and significant, suggesting that companies with higher proportions of NEDs seem to perform better than those with lower proportions of NEDs. Third, frequency of board meetings is negatively and significantly related to both the ROA and the Tobin's Q suggesting that companies which hold board meetings less frequently appear to perform better than those holding board meetings more frequently. Fourth, the relationship between company size and two performance measures (EVA and ROA) is both positive and significant, suggesting that larger companies seem to perform better than smaller ones. Furthermore, the association between leverage and the ROA is negative and marginally significant, suggesting that companies with less debt appear to perform better than those with more debt. Overall, based on the number and strength of associations between board characteristics and the measures of performance, we conclude that Tobin's Q has a better association with board characteristics than both EVA and ROA. The study also shows that the majority of firms listed on the JSE comply with the King III propositions that the majority of board members be NEDs and that the majority of the NEDs be independent. Journal: South African Journal of Accounting Research Pages: 115-131 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006482 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:115-131 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006483_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K. J. Barnard Author-X-Name-First: K. J. Author-X-Name-Last: Barnard Author-Name: M. Mostert Author-X-Name-First: M. Author-X-Name-Last: Mostert Title: Exploring student perceptions and experiences of ICT-enhanced formative assessment in an undergraduate management accounting course Abstract: The central role of assessment in driving student learning has been well argued in the literature. In particular, continuous formative assessment with timely feedback helps motivate students to work consistently, while the addition of just-in-time support may further motivate and support learning. Information and communication technologies have the potential both to contain the administrative burden of frequent formative assessment and enhance the provision of timely feedback. Drawing on theories of assessment and motivation this study investigates the value of combining two technological interventions, tutorial screencasts and online quizzes, for enhancing student learning in an undergraduate management accounting course. Data was collected from the usage logs of the learning management system and a survey of student experiences. The results indicate that the interventions enhanced students’ learning experiences both by motivating them to engage with the coursework and by encouraging them to do so on a continuous basis. Journal: South African Journal of Accounting Research Pages: 132-150 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006483 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:132-150 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006484_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Warren Maroun Author-X-Name-First: Warren Author-X-Name-Last: Maroun Title: Peculiarities of the fair value taxation regime for financial instruments Abstract: The enactment of s24JB represents a significant change in the taxation of financial instruments. The traditional approach of including amounts in gross income on the earlier of receipt or accrual is superseded by a fair value regime grounded in International Financial Reporting Standards. Initially, this approach appears logical, resulting in an alignment of the determination of taxable income and total comprehensive income for financial reporting purposes. A closer examination, however, reveals a number of tensions between the relevant International Financial Reporting Standards and s24JB. This confirms the position in the prior corporate governance and tax literature that seldom are new laws and regulations free from dysfunctional consequences. Journal: South African Journal of Accounting Research Pages: 151-161 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006484 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:151-161 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006485_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Anne-Marie Eloff Author-X-Name-First: Anne-Marie Author-X-Name-Last: Eloff Author-Name: Charl de Villiers Author-X-Name-First: Charl Author-X-Name-Last: de Villiers Title: The value-relevance of goodwill reported under IFRS 3 versus IAS 22 Abstract: The application of International Financial Reporting Standard (IFRS) 3, which became compulsory for financial periods beginning on or after 31 March 2004, significantly changed the initial and subsequent measurement of goodwill in annual reports. This change in the accounting treatment of goodwill was not universally accepted and there has been ongoing debate around the efficacy of the new goodwill treatment. This study uses a revised Ohlson-type value-relevance model (Ohlson, 1995) to examine the association between the goodwill balance reported and the market value of a company before and after the introduction of IFRS 3. The findings show that the goodwill balance reported according to IFRS 3 provides information that is more value-relevant than the previous International Accounting Standard (IAS) 22 treatment. In the light of the ongoing debate around the accounting treatment of goodwill, this study provides regulators and researchers with valuable information to further assess the efficacy of the IFRS 3 goodwill treatment. Journal: South African Journal of Accounting Research Pages: 162-176 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006485 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:162-176 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006486_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: K. J. Barnard Author-X-Name-First: K. J. Author-X-Name-Last: Barnard Author-Name: M. B. Bunting Author-X-Name-First: M. B. Author-X-Name-Last: Bunting Title: Value and size investment strategies during the global financial crisis: evidence from the South African equity market Abstract: Value/growth and size investment strategies involve the creation of equity portfolios on the bases, respectively, of intrinsic value relative to market value and market capitalisation. The propositions that a portfolio of high relative intrinsic value shares anomalously outperforms a low intrinsic value portfolio (in other words, there is a value premium) and a portfolio of low market capitalisation shares outperforms big company shares (a size effect) have attracted a great deal of academic and professional attention in recent decades. This paper examines the value premium and the size effect in the context of the South African equity market for the period July 2006 to June 2012, which includes the global financial crisis and its continuing economic aftermath. Two specific issues are investigated: firstly, whether the value premium and size effect exist in this market and this time frame, and secondly, whether the evidence in this context provides any support for a rational investor explanation for the observed state of the equity market. In terms of the first research objective, statistically significant results are found in support of the existence of the value premium in the specific context of small shares and the size effect in the context of value shares. In terms of the second, some evidence is presented that may support the argument that these particular equity market anomalies are not associated with differences in risk. Journal: South African Journal of Accounting Research Pages: 177-196 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006486 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:177-196 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1006475_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: David Bradfield Author-X-Name-First: David Author-X-Name-Last: Bradfield Author-Name: Graham Barr Author-X-Name-First: Graham Author-X-Name-Last: Barr Title: A comment on “Portfolio rebalancing in South Africa” Abstract: In this comment we add to the discussion on rebalancing portfolios by Sher and Barr (2011). In particular we highlight how a recent rebalancing proposal by Chan and Ramkumar (2011) is found to significantly improve rebalancing performance. An important feature of both studies is that they recognise the significant impact of rebalancing in stressed market conditions and consequently build this into their study designs. In this comment we adapt the tabled results of the first study and portray them in a graphical framework to be comparable with the results of the second study. A concerning feature of Sher and Barr's (2011) results is that the fixed-band strategies they propose still do not seem to adequately control the risks and costs of rebalancing arising in stressed market conditions. We consequently highlight how the Chan and Ramkumar's (2011) rebalancing proposal is especially beneficial in stressed market conditions and is likely to improve on the results of the rebalancing proposal of Sher and Barr (2011). Chan and Ramkumar's (2011) rebalancing proposal is based on a joint cost and tracking error minimisation optimisation. When we take heed of the fact that the South African environment is characterised by higher volatility than developed markets, and more so during stressed periods, this tracking error rebalancing proposal is likely to be practically appealing. Journal: South African Journal of Accounting Research Pages: 197-203 Issue: 2 Volume: 29 Year: 2015 Month: 7 X-DOI: 10.1080/10291954.2015.1006475 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1006475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:29:y:2015:i:2:p:197-203 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1019223_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jade Jansen Author-X-Name-First: Jade Author-X-Name-Last: Jansen Author-Name: Charl de Villiers Author-X-Name-First: Charl Author-X-Name-Last: de Villiers Title: Determinants of student performance in an accounting degree programme Abstract: The objective of this study is to identify, by way of regression analysis, the factors that have a significant relationship with student performance in accounting at the third-year level at universities. This study extends the existing literature on student performance in tertiary level accounting programmes. The results can inform the selection process, as well as develop and incorporate appropriate initiatives to enhance the performance of students in these types of programmes. The sample comprises data obtained from students attempting the exit modules in the 2010 and 2011 academic years at the University of the Western Cape. Findings indicate that at the time when students finish high school, their final-year high school grades are significantly related to their performance in the final undergraduate accounting module. Interestingly, their high school mathematics grades appear to be significantly related to passing or failing Accounting 3, but not the percentage achieved in Accounting 3. After their first year, students’ Accounting 1 grades are positively and highly significantly related to their performance in Accounting 3. Similarly, after their second year, students’ Accounting 2 grades are positively and highly significantly related to their performance in Accounting 3. Journal: South African Journal of Accounting Research Pages: 1-28 Issue: 1 Volume: 30 Year: 2016 Month: 1 X-DOI: 10.1080/10291954.2015.1019223 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1019223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:1:p:1-28 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1021559_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: G Dowie Author-X-Name-First: G Author-X-Name-Last: Dowie Author-Name: G Willows Author-X-Name-First: G Author-X-Name-Last: Willows Title: An investigation of investors’ estimates of returns earned and the effect of anchoring on these estimations Abstract: This study examines overconfidence and anchoring in an investing environment to determine if there is evidence of the phenomenon amongst a sample of academics at participating universities.A survey was sent out to over 6,000 staff members at four South African universities assessing respondents’ estimations of their returns earned in unit trusts in which they were invested, as well as assessing whether they would adjust their estimate when presented with an anchor – the relevant Johannesburg Stock Exchange (JSE) All Share Index return. A total of 466 completed responses were obtained, of which 81 respondents indicated that they were invested directly in a South African equity unit trust to allow for statistical testing. The data obtained were analysed for evidence of overconfidence and anchoring by comparing respondents’ estimates of fund returns against historical returns and then checking whether they adjusted their estimate after being presented with an anchor.The study found that investors were under-confident rather than overconfident. Furthermore, it was found that older respondents were better able to estimate their past returns than younger respondents. The presence of an anchor appeared to have no effect on respondents’ estimates. Journal: South African Journal of Accounting Research Pages: 29-40 Issue: 1 Volume: 30 Year: 2016 Month: 1 X-DOI: 10.1080/10291954.2015.1021559 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1021559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:1:p:29-40 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1021583_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kim Raemaekers Author-X-Name-First: Kim Author-X-Name-Last: Raemaekers Author-Name: Warren Maroun Author-X-Name-First: Warren Author-X-Name-Last: Maroun Author-Name: Nirupa Padia Author-X-Name-First: Nirupa Author-X-Name-Last: Padia Title: Risk disclosures by South African listed companies post-King III Abstract: The introduction of principles on the governance of risk in the King Code on Corporate Governance (King III), coupled with the drive for more integrated models of reporting, has highlighted the need for effective communication of risks and risk-management strategies to stakeholders. To date, however, there has been little research on trends in risk disclosure practices by large firms listed on the Johannesburg Stock Exchange (JSE). As such, this research adds to the body of integrated reporting literature by examining changes in the extent of risk disclosures by these companies from 2010 to 2012. The research finds that, although there has been an increase in disclosure over this period, there is a possibility of reporting on the governance of risk being a compliance-based exercise rather than an example of effective stakeholder communication. Journal: South African Journal of Accounting Research Pages: 41-60 Issue: 1 Volume: 30 Year: 2016 Month: 1 X-DOI: 10.1080/10291954.2015.1021583 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1021583 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:1:p:41-60 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1054118_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wessel M. Badenhorst Author-X-Name-First: Wessel M. Author-X-Name-Last: Badenhorst Author-Name: Leon M. Brümmer Author-X-Name-First: Leon M. Author-X-Name-Last: Brümmer Author-Name: Johannes H. v. H. de Wet Author-X-Name-First: Johannes H. v. H. Author-X-Name-Last: de Wet Title: The value-relevance of listed associates: a cross-country investigation Abstract: Prior research findings are not conclusive on whether or not equity accounted carrying amounts and disclosed fair values of listed associates are value-relevant in different countries. Using a variety of statistical methods, this study compares the value-relevance of disclosed fair values of listed associates in South Africa, the United Kingdom (UK) and Australia. It finds that value-relevance differs between sample countries, especially when firms in the globalised financial services and mining industries are excluded from the sample, despite increased convergence in accounting standards. This study contributes to the existing literature by directly comparing the cross-country value-relevance of disclosed fair values of listed associates. Findings highlight that generalisation of value-relevance findings across countries and industries should be done with caution. Journal: South African Journal of Accounting Research Pages: 61-78 Issue: 1 Volume: 30 Year: 2016 Month: 1 X-DOI: 10.1080/10291954.2015.1054118 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1054118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:1:p:61-78 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1099215_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L. Peta Myers Author-X-Name-First: L. Peta Author-X-Name-Last: Myers Title: Knowledge structures and their relevance for teaching and learning in introductory financial accounting Abstract: The structure of knowledge within a discipline has implications for the teaching and learning within the discipline. This research examines how the hierarchical knowledge structure found in accounting impacts on the teaching and learning which takes place in the first-semester introductory financial accounting course. Students used online questionnaires and interviews to explain how they engaged with the discipline and describe the difficulties they experienced during the semester. Bernstein's pedagogic device and Maton's Legitimation Code Theory were used to analyse the structure of knowledge within the discipline and as theoretical lenses through which to view these students’ perceptions. This research provides a theoretical explanation for the impact that a hierarchical knowledge structure has on teaching and learning within the discipline; how students need to develop a “trained gaze” and thereby gain mastery over the “procedures of investigation” to be able to produce the “legitimate text” required for success in the course. This research also explains why some students experience a “code clash” and the implications this has for their success in the discipline. Other pedagogical difficulties which were experienced by these students, as a result of the hierarchical knowledge structure within the discipline, are also discussed. In addition to providing a better understanding of the phenomena that drive or hinder student learning, which could contribute towards improving pedagogy and hence student learning, theorising these concepts provides a common language to enable more informed debate on these issues. Journal: South African Journal of Accounting Research Pages: 79-95 Issue: 1 Volume: 30 Year: 2016 Month: 1 X-DOI: 10.1080/10291954.2015.1099215 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1099215 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:1:p:79-95 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1070565_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: S. V. Junpath Author-X-Name-First: S. V. Author-X-Name-Last: Junpath Author-Name: M. S. E. Kharwa Author-X-Name-First: M. S. E. Author-X-Name-Last: Kharwa Author-Name: L. J. Stainbank Author-X-Name-First: L. J. Author-X-Name-Last: Stainbank Title: Taxpayers’ attitudes towards tax amnesties and compliance in South Africa: an exploratory study Abstract: South Africa has seen tremendous changes since 1994, from the introduction of a new government to structural changes in tax administration. One of the challenges the government faced in the new democracy was the restructuring of the tax system. Multiple tax amnesty programmes were thus introduced between 1995 and 2010 to provide immunity for limited periods to citizens and small businesses for past non-compliance without being subjected to additional tax, interest, penalties or prosecution. This paper presents the results of a survey on the attitudes of taxpayers towards tax compliance and tax amnesties in South Africa. The findings from this study indicate that taxpayers are of the view that the offering of multiple tax amnesties might not generate additional revenue, as non-compliant taxpayers will continue to evade taxation in anticipation of additional future amnesties. Journal: South African Journal of Accounting Research Pages: 97-119 Issue: 2 Volume: 30 Year: 2016 Month: 7 X-DOI: 10.1080/10291954.2015.1070565 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1070565 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:2:p:97-119 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1099203_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J. J. Williams Author-X-Name-First: J. J. Author-X-Name-Last: Williams Author-Name: J. Deodutt Author-X-Name-First: J. Author-X-Name-Last: Deodutt Author-Name: L. J. Stainbank Author-X-Name-First: L. J. Author-X-Name-Last: Stainbank Title: An analysis of director interlocks on the Johannesburg Stock Exchange Abstract: Director interlocks, which occur when companies have directors in common, have concerned shareholders, the public and legislators since the early 1900s. The purpose of this paper is to analyse the interlocking directorships of the Top 40 companies listed on the Johannesburg Stock Exchange using small world theory and compare the results to research on interlocks in Italian, French, German, United Kingdom (UK) and United States (US) companies. South Africa was found to be closest to Italy, between the low-density models of the UK and the US, and the significantly higher-density models of Germany and France. This suggests that rather than just the two models (low density and high density), there is a continuum currently reflected with the UK and the US at one end, then South Africa and Italy, and then France and Germany at the other end. The presence of directors with multiple directorships indicates that the threats and benefits associated with multiple directorships may exist in South Africa. Journal: South African Journal of Accounting Research Pages: 120-138 Issue: 2 Volume: 30 Year: 2016 Month: 7 X-DOI: 10.1080/10291954.2015.1099203 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1099203 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:2:p:120-138 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1099216_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Thando Loliwe Author-X-Name-First: Thando Author-X-Name-Last: Loliwe Title: Voluntary employee reporting by the wholesale and retail companies listed on the Johannesburg Stock Exchange Abstract: Using stakeholder theory, this article investigates the level, subject types, location and determinants of voluntary employee disclosures in the annual reports of the wholesale and retail companies in South Africa listed on the Johannesburg Stock Exchange (JSE). It finds that the levels of voluntary employee disclosures have increased over the sampled period and that this trend is headed by Massmart. In addition, this paper finds that the degree of disclosure of various subject types does not stay the same over time, and that most of these disclosures are presented in the sustainability report section of the annual reports. Further findings indicate that sampled companies with significant executive director shareholding engage in less voluntary employee disclosure than companies with lower executive director shareholding. Lastly, another finding indicates that a high BEE rating score for companies is significantly associated with high voluntary employee disclosures. Journal: South African Journal of Accounting Research Pages: 139-171 Issue: 2 Volume: 30 Year: 2016 Month: 7 X-DOI: 10.1080/10291954.2015.1099216 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1099216 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:2:p:139-171 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1105546_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D. Bradfield Author-X-Name-First: D. Author-X-Name-Last: Bradfield Author-Name: B. Munro Author-X-Name-First: B. Author-X-Name-Last: Munro Title: The role of gold bullion in South African balanced portfolios Abstract: The objective of this paper is to establish the structural features that gold bullion brings to South African global–balanced portfolios and to establish a strategic weight for this potential asset. We consider two methodological approaches based on a 40-year history to establish a strategic allocation weight for gold bullion. Our first approach considers the strategic role of gold bullion in South African global–balanced portfolios by using a mean-variance efficient frontier framework. We also implement a second assessment methodology that utilises a non-parametric optimisation procedure. We find from our efficient frontier analysis that the primary strategic role of gold bullion in a South African multi-asset portfolio is to add diversification and reduce portfolio risk (rather than enhance return). Whilst our mean-variance results differ slightly from our non-parametric results we ultimately find evidence in support of an allocation of 4% to gold bullion for South African balanced portfolios. This finding is consistent with findings in the international literature. Journal: South African Journal of Accounting Research Pages: 172-186 Issue: 2 Volume: 30 Year: 2016 Month: 7 X-DOI: 10.1080/10291954.2015.1105546 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1105546 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:30:y:2016:i:2:p:172-186 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1105549_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Andres Merino Author-X-Name-First: Andres Author-X-Name-Last: Merino Author-Name: Michele Aucock Author-X-Name-First: Michele Author-X-Name-Last: Aucock Title: Evaluation of an intervention aimed at developing the personal attributes of prospective entrants into the accounting profession Abstract: Rapid changes in the business world coupled with increased global competition demand that accountants must have a wide range of skills and attitudes if they are to meet the rising expectations of employers and of society as a whole. This article evaluates an intervention designed to develop personal attributes such as lifelong learning and the analytical decision-making and communication skills of prospective entrants into the accounting profession. The intervention was structured around a management accounting course and involved seven tutorials in which a tutor role modelled self-regulated learning skills, strategies, and behaviours. A mixed methods approach was used to ascertain the effect of the intervention and assess its impact on student performance. The results show that students developed a number of generic or “pervasive” skills associated with lifelong learning and that the intervention facilitated self-motivation, group work, the setting of timetables, and interaction with mentors. The results also indicated that the intervention significantly influenced the performance of students compared to that of their peers. Journal: South African Journal of Accounting Research Pages: 1-18 Issue: 1 Volume: 31 Year: 2017 Month: 1 X-DOI: 10.1080/10291954.2015.1105549 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1105549 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1105552_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alwyn Visser Author-X-Name-First: Alwyn Author-X-Name-Last: Visser Author-Name: Gretha Steenkamp Author-X-Name-First: Gretha Author-X-Name-Last: Steenkamp Title: Explicit reading time in chartered accountancy examinations: perceptions of students and lecturers Abstract: In 2011, the South African Institute of Chartered Accountants (SAICA) changed the structure of the first qualifying examination to include explicit reading time, during which candidates are given the scenario(s) of the paper without giving them the “Required” section. This paper investigates the perceptions of students and lecturers regarding explicit reading time, specifically focusing on how reading time should be spent and whether the “Required” section should be made available to students during reading time. Most students and lecturers find reading time to be beneficial and/or useful. Both groups think it should be spent reading the scenario and making short annotations. The respondents to the questionnaire also feel that the “Required” section should be made available to students during reading time. Journal: South African Journal of Accounting Research Pages: 19-34 Issue: 1 Volume: 31 Year: 2017 Month: 1 X-DOI: 10.1080/10291954.2015.1105552 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1105552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:1:p:19-34 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1105555_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: T. Moodley Author-X-Name-First: T. Author-X-Name-Last: Moodley Author-Name: M. Ward Author-X-Name-First: M. Author-X-Name-Last: Ward Author-Name: C. Muller Author-X-Name-First: C. Author-X-Name-Last: Muller Title: The relationship between the management of payables and the return to investors Abstract: Effective working capital management assists a firm in achieving improved liquidity through the management of the components of receivables, inventory, and payables. Previous studies have established that changes in working capital have a strong positive correlation to profitability and that whilst changes to receivables and inventory have a positive correlation to profitability, changes in payables have an inverse relationship. The inverse correlation between payables and profitability is contrary to the theory that advocates extending payment terms as a means of managing working capital and improving liquidity. We apply a buy-and-hold portfolio methodology to an extensive database of Johannesburg Stock Exchange (JSE) listed South African companies over the period 1986 to 2014. We find that for those companies in industries that have a significant investment in payables, there is a significant positive association between changes in payable days and shareholder return, which supports the general theory of working capital management. Journal: South African Journal of Accounting Research Pages: 35-43 Issue: 1 Volume: 31 Year: 2017 Month: 1 X-DOI: 10.1080/10291954.2015.1105555 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1105555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:1:p:35-43 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1122284_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: David Bradfield Author-X-Name-First: David Author-X-Name-Last: Bradfield Author-Name: Brian Munro Author-X-Name-First: Brian Author-X-Name-Last: Munro Title: The number of stocks required for effective portfolio diversification: the South African case Abstract: This article considers several insights surrounding the number of stocks needed in portfolios in South Africa to achieve effective risk reduction. The majority of studies in the literature use equally-weighted portfolio construction schemes and conclude that at most 20 stocks are needed for effective diversification. We point out that more stocks are potentially needed in concentrated portfolios that typify portfolios in South Africa. To this end a market-capitalisation-weighting scheme is investigated and contrasted with an equal-weighting scheme in the construction of portfolios. Our findings confirm that more stocks are needed in the South African environment and we give recommendations for the number of stocks required to achieve effective diversification in South Africa. Journal: South African Journal of Accounting Research Pages: 44-59 Issue: 1 Volume: 31 Year: 2017 Month: 1 X-DOI: 10.1080/10291954.2015.1122284 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1122284 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:1:p:44-59 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1122285_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ilse Lubbe Author-X-Name-First: Ilse Author-X-Name-Last: Lubbe Title: Challenges for curriculum design: Considerations for a four-year business and accounting degree in South Africa Abstract: Knowledge in accounting has expanded exponentially over the last two decades, along with a call from accounting education committees and employers for students to acquire competencies for a global market. However, the time allocation of three years for undergraduate accounting studies has remained unchanged. Within South Africa's developing economy, business and accounting education at universities faces several exacerbating challenges, including poor schooling and underprepared students, as well as large classes with students from diverse social and ethnic backgrounds. These challenges raise the following question: is it fair to expect “new generation” students to complete a B Com degree – that is, a Bachelor's degree in Commerce, specialising in disciplines such as accounting, business studies and finance – in three years when the average student usually takes more than four years to complete it? This descriptive paper makes these challenges explicit, and provides curriculum design principles for the reconfiguration of business and accounting undergraduate programmes. A strong argument is made that the existing business and accounting undergraduate curriculum for the Chartered Accountant (CA) qualification should be extended to a period of four years, giving students the option of more time to master the core curriculum and competencies required. It recommends the implementation of an extended undergraduate curriculum structure that allows for additional curriculum space and enhances the quality and relevance of the curriculum. This should be supported by an adaptable curriculum that allows for flexibility in starting points and progression. The aim of the extended curriculum is to enable students to progress in accordance with their level of preparedness and personal circumstances, maximising their chances of successfully completing the degree. Journal: South African Journal of Accounting Research Pages: 60-82 Issue: 1 Volume: 31 Year: 2017 Month: 1 X-DOI: 10.1080/10291954.2015.1122285 File-URL: http://hdl.handle.net/10.1080/10291954.2015.1122285 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:1:p:60-82 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1144867_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Vincent Pendehama Author-X-Name-First: Vincent Author-X-Name-Last: Pendehama Author-Name: Nirupa Padia Author-X-Name-First: Nirupa Author-X-Name-Last: Padia Author-Name: Chris Callaghan Author-X-Name-First: Chris Author-X-Name-Last: Callaghan Title: Audit fee premium: The potential effect of King III Abstract: In the wake of corporate scandals at world-renowned companies such as Enron (in 2001) and WorldCom (in 2002), public confidence in the role of the auditing profession was eroded. Consequently, in the United States, the Sarbanes-Oxley Act of 2002 (SOX) introduced a raft of mandatory corporate governance initiatives; in the United Kingdom measures included expanding the role of the Financial Reporting Council, the updating of the Combined Code in 2003 and the 2005 Company Law Reform Act; while in France, the Financial Security introduced provisions which were deemed to be very similar to SOX. In South Africa, corporate reforms included the introduction of the King I to III codes of corporate governance, the Companies Act No.71 of 2008 and the Auditing Profession Act No. 26 of 2005. In particular, King III introduced the concept of integrated reporting (IR) which recommends that companies report holistically on both financial and sustainability (economic, social and environmental) issues. In contrast to SOX, however, the application of King III is voluntary, operating on an ‘apply or explain’ basis. The introduction of SOX was postulated to have increased compliance costs and created fee opportunities for the audit profession, giving rise to questions as to whether or not the introduction of IR in King III had introduced similar opportunities for the auditing profession in South Africa, resulting in audit firms charging an audit fee premium1.In this study, multiple regression analysis was conducted on two sets of models to test two hypotheses: (i) that the BIG42 audit firms potentially charged an audit fee premium in response to the recommendations of King III on IR, and (ii) that audit fees are related to non-audit service fees. Results of the research do not show any evidence to suggest that the advent of King III was related to audit fee premiums, yet a strong relationship was found between audit3 and non-audit service fees4. Further, certain of the BIG4 audit firms were found to obtain an audit fee premium. The findings of this study add a South African dimension to the existing body of knowledge on the relationships between audit fees and governance initiatives in this context. Journal: South African Journal of Accounting Research Pages: 83-101 Issue: 2 Volume: 31 Year: 2017 Month: 5 X-DOI: 10.1080/10291954.2016.1144867 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1144867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:2:p:83-101 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1144883_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ellané van Wyk Author-X-Name-First: Ellané Author-X-Name-Last: van Wyk Author-Name: Cara Thiart Author-X-Name-First: Cara Author-X-Name-Last: Thiart Title: The scope and levying of interest subject to the withholding tax in terms of sections 50A–50H of the Income Tax Act No. 58 of 1962 Abstract: A withholding tax on interest is levied in terms of sections 50A to 50H of the Income Tax Act No. 58 of 1962 (as amended) and has been effective since 1 March 2015. In this study, certain areas of concern were identified regarding the scope of interest subject to withholding tax and the timing of the levying of the withholding tax. A secondary concern involved the application of section 23M of the Act. A literature review of the theoretical basis for the taxation of interest was undertaken. Relevant terms and phrases; other sections of the Act which might affect, or be affected by the application of the withholding tax on interest provisions; South African case law; international case law and the Model Tax Convention of the Organisation of Economic Cooperation and Development were analysed. Based on the findings, it is recommended that the provisions of section 50A to 50H of the Act be amended or extended to include a definition of interest subject to withholding tax and that section 50D(3) of the Act be amended to allow for interest paid in the form of an annuity to be exempt from withholding tax or for interest subject to withholding tax to be exempt from normal tax. Finally, the alignment of the wording of section 50D(3)(a) and section 10(1)(h)(i) of the Act is also recommended in order to remove contradictions in the accrual and payment of interest and to prevent the potential non-taxation of interest income. Journal: South African Journal of Accounting Research Pages: 102-116 Issue: 2 Volume: 31 Year: 2017 Month: 5 X-DOI: 10.1080/10291954.2016.1144883 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1144883 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:2:p:102-116 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1159498_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: A. Herron Author-X-Name-First: A. Author-X-Name-Last: Herron Title: A critical analysis of whether research activities performed by universities fall within the meaning and scope of the term ‘educational services’ as intended by section 12(h) of the Value-Added Tax Act No. 89 of 1991 Abstract: According to section 12(h) of the Value-Added Tax Act No. 89 of 1991, ‘educational services’ are exempt from the levying of value-added tax as imposed by section 7(1)(a) of the Act. The Value-Added Tax Act No. 89 of 1991 does not, however, contain a definition of the term ‘educational services’ and therefore uncertainty exists in practice regarding the meaning and ambit of the term ‘educational services’ and whether research conducted by an institution providing higher education would qualify as an ‘educational service’ or not. The main objective of this article is to investigate whether research activities performed by universities qualify as educational services. In order to meet this objective, South African and international literature was analysed to determine the meaning and scope of educational services. It was found that different categories of research exist (commercial and non-commercial) and, depending on the nature of the research, the treatment is different for value-added tax purposes. Journal: South African Journal of Accounting Research Pages: 117-133 Issue: 2 Volume: 31 Year: 2017 Month: 5 X-DOI: 10.1080/10291954.2016.1159498 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1159498 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:2:p:117-133 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1160175_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sharon Smulders Author-X-Name-First: Sharon Author-X-Name-Last: Smulders Author-Name: Madeleine Stiglingh Author-X-Name-First: Madeleine Author-X-Name-Last: Stiglingh Author-Name: Riel Franzsen Author-X-Name-First: Riel Author-X-Name-Last: Franzsen Author-Name: Lizelle Fletcher Author-X-Name-First: Lizelle Author-X-Name-Last: Fletcher Title: Determinants of external tax compliance costs: Evidence from South Africa Abstract: Small businesses tend to rely on external service providers (tax practitioners, accountants, lawyers and bookkeepers) for assistance with their tax affairs. Payments to external service providers clearly affect a small business’s tax compliance costs. This study uses multiple regression analyses to investigate the key drivers of small business external tax compliance costs. This will assist Revenue Services in understanding what factors (determinants) could increase a small business’s external tax compliance costs and might assist in managing tax compliance behaviour and contribution.Overall, the results show that although the legal form, age, use of small business tax concessions, level of education of the respondents and the type of accounting system used are statistically significant determinants of external tax compliance costs, turnover is the greatest determinant. The results also indicate that external tax compliance costs are regressive in relation to the size of a business, confirming previous research findings in this arena. Journal: South African Journal of Accounting Research Pages: 134-150 Issue: 2 Volume: 31 Year: 2017 Month: 5 X-DOI: 10.1080/10291954.2016.1160175 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1160175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:2:p:134-150 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1160196_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Madeleine Stiglingh Author-X-Name-First: Madeleine Author-X-Name-Last: Stiglingh Author-Name: Elmar R. Venter Author-X-Name-First: Elmar R. Author-X-Name-Last: Venter Author-Name: Ilinza Penning Author-X-Name-First: Ilinza Author-X-Name-Last: Penning Author-Name: Anna-Retha Smit Author-X-Name-First: Anna-Retha Author-X-Name-Last: Smit Author-Name: Anculien Schoeman Author-X-Name-First: Anculien Author-X-Name-Last: Schoeman Author-Name: Theuns L. Steyn Author-X-Name-First: Theuns L. Author-X-Name-Last: Steyn Title: Tax transparency reporting by the top 50 JSE-listed firms Abstract: As a result of increased regulatory focus on a number of firms’ tax behaviour, tax compliance is now recognised as a source of reputational risk. Transparency on the reporting of tax related matters in public corporate reports could mitigate a firm’s reputational tax risk. In this study, we develop a framework to evaluate tax transparency in such reports. This framework is then applied to the corporate reports of 50 large firms in South Africa to identify the performance of these firms in terms of the framework. We find that 86% of the firms comply with more than 70% of the mandatory tax reporting requirements. We also show that 50% of the firms are transparent regarding their disclosure of tax strategy and risk management, tax figures and performance, their total tax contribution and the wider economic impact of their tax behaviour. Journal: South African Journal of Accounting Research Pages: 151-168 Issue: 2 Volume: 31 Year: 2017 Month: 5 X-DOI: 10.1080/10291954.2016.1160196 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1160196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:2:p:151-168 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1160197_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: David Fourie Author-X-Name-First: David Author-X-Name-Last: Fourie Author-Name: Wayne Poggenpoel Author-X-Name-First: Wayne Author-X-Name-Last: Poggenpoel Title: Public sector inefficiencies: Are we addressing the root causes? Abstract: Public sectors all over the world face challenges and, thus far, public sector reforms have not been very successful. The public sector, as a key component of any economy, needs to address its challenges adequately to prevent economic growth and development from being curtailed. This article hopes to spark debate about whether too much emphasis is being placed on symptoms of public sector challenges instead of addressing these challenges at their root. The article focuses on the South African public sector – a third world country public sector − and examines reports by the Auditor General of South Africa and the Public Service Commission of South Africa for recurring themes and findings. The results of the study clearly suggest that the South African public sector is not yet adequately addressing its challenges at their roots, resulting in the challenges recurring year after year. Journal: South African Journal of Accounting Research Pages: 169-180 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1160197 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1160197 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:169-180 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1192328_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E van Wyk Author-X-Name-First: E Author-X-Name-Last: van Wyk Author-Name: M Terblanche Author-X-Name-First: M Author-X-Name-Last: Terblanche Title: Section 12M contributions in terms of the Income Tax Act No. 58 of 1962: Normal tax implications for the retired employee Abstract: Section 12M of the Income Tax Act No. 58 of 1962 allows a normal tax deduction for employers who pay the post-retirement medical contributions by way of lump sum payments on behalf of retired employees. Although a full deduction is granted to the employer for a contribution in terms of section 12M, an area of uncertainty has been identified by the authors of this paper. This area of uncertainty involves the income tax implications for the retired employee upon receipt of such contribution or upon receipt of a benefit regarding such contribution from the former employer. Possible tax implications were considered in terms of paragraphs (a), (c), (d), (f) and (i) of the gross income definition, as well as in terms of paragraphs 2(i) read with 12A of the Seventh Schedule to the Act. A number of binding class rulings and one binding private ruling published by SARS were investigated, supported by a scrutiny of the relevant provisions of the Act. It is concluded that a contribution in terms of section12M(2)(b) will be regarded as a fringe benefit in terms of paragraph 2(i) read with paragraph 12A of the Seventh Schedule to the Act, whilst a section 12M(2)(a) contribution might be a paragraph (c) paragraph (d) or paragraph (f) inclusion in gross income. The latter two might qualify as severance benefits. Lastly, the employee will be entitled to a section 6A(2)(a) medical scheme fees tax credit should the amount be applied for medical contributions. Journal: South African Journal of Accounting Research Pages: 181-192 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1192328 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1192328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:181-192 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1196528_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: L Peta Myers Author-X-Name-First: L Peta Author-X-Name-Last: Myers Title: An analysis of how students construct knowledge in a course with a hierarchical knowledge structure Abstract: Passing the introductory accounting semester is often seen as a challenge for first year students. Being aware of both effective and ineffective ways of constructing knowledge in a discipline with a hierarchical knowledge structure will be of value to students and teachers alike in assisting in the development of effective styles of learning. This article, which is part of a larger body of research, analyses how students in an introductory financial accounting class at Rhodes University constructed knowledge. Previous research described the course as having a hierarchical knowledge structure.In this research, first year accounting students at Rhodes University were interviewed to gain an improved understanding of how they constructed knowledge in this course. This article describes how students who were successful in passing this semester course used similar, effective ways of constructing knowledge, while students who were not successful also employed similar but less effective ways of constructing knowledge. These different ways of constructing knowledge, both effective and ineffective, were analysed, using the Bernstein’s pedagogic device and Maton’s Legitimation Code Theory.This article provides those involved in teaching and learning in a discipline with a hierarchical knowledge structure, with a theoretical explanation of why some methods of constructing knowledge are more effective than others. Understanding and being explicit about more (and less) effective ways of constructing knowledge in a course with a hierarchical knowledge structure can guide those involved in teaching and learning to improve results. Journal: South African Journal of Accounting Research Pages: 193-211 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1196528 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1196528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:193-211 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1199145_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wessel M. Badenhorst Author-X-Name-First: Wessel M. Author-X-Name-Last: Badenhorst Title: Premiums and discounts of exchanged-traded funds Abstract: The objective of this study is to determine whether the spread in underlying exchange-traded fund (ETF) investments is a significant cause of the premium/discount of the ETF. Spreads of underlying investment portfolios are alternatively calculated using weighted bid-ask and bid-close spreads for a sample of ETFs listed on the Johannesburg Stock Exchange (JSE) in South Africa from 2010 to 2014. Results show that spreads of underlying investment portfolios are positively associated with larger premiums/discounts of ETFs as a whole. However, stratified results show that this relationship exists only for premiums; underlying spreads are not significantly associated with discounts. In addition, the findings show that expense ratios offer a significant explanation for premiums/discounts of ETFs. This paper contributes to the existing literature by offering an explanation for the size of premiums of ETFs at reporting date. Its findings imply that relative illiquidity in the underlying portfolio of the ETF means that a premium will likely persist. A deeper understanding in this regard assists investors in determining whether an ETF premium is worth paying for. In addition, this paper reveals that premiums and discounts of ETFs do not always arise from the same causes and should be investigated as separate phenomena in future research. Journal: South African Journal of Accounting Research Pages: 212-222 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1199145 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1199145 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:212-222 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1204148_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Merwe Oberholzer Author-X-Name-First: Merwe Author-X-Name-Last: Oberholzer Author-Name: Dawie Mong Author-X-Name-First: Dawie Author-X-Name-Last: Mong Author-Name: Jan van Romburgh Author-X-Name-First: Jan Author-X-Name-Last: van Romburgh Title: Towards a new model to benchmark firms’ operating efficiency: A data envelopment analysis approach Abstract: The purpose of the study was to construct two similar data envelopment analysis (DEA) models. The first contains only published accounting-based data and the second added weighted average cost of capital (WACC), a primary market-based determinant, as an input variable. The efficiency scores of firms according to the two models are compared to determine whether there is a significant difference between the two models’ results. In total, 206 company years were analysed. This includes all the manufacturing firms which published financial statements on the Johannesburg Security Exchange (JSE) from 2011 to 2013. The study found that there is a good chance that the efficiency score of a firm will be significantly lower when WACC is added as a variable. Therefore, ignoring WACC in a general benchmarking DEA model may provide a misleading, too optimistic, sugar-coated answer to firms’ managers with regard to their firms’ relative operating efficiency. The study contributes to the existing body of literature by revealing evidence that WACC is an important component in a DEA model that aims to benchmark firms’ operating efficiency. Therefore, accounting-based data should be used in conjunction with WACC, a primary market-based determinant, which adds a further dimension to the benchmarking model. Journal: South African Journal of Accounting Research Pages: 223-239 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1204148 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1204148 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:223-239 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1205248_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Warren Maroun Author-X-Name-First: Warren Author-X-Name-Last: Maroun Title: Accounting for revenue using an accountability and business model framework: The case of the South African Institute of Chartered Accountants’ professional examinations Abstract: This research adopts a normative approach. It builds on the academic literature which argues that the usefulness of financial reporting can be enhanced by aligning accounting for balances and transactions with an organisation’s business model, as presented in its integrated report. This is done using examination fees collected by the South African Institute of Chartered Accountants (SAICA) as an example. The research demonstrates how SAICA’s business model can be used to inform the identification of contracts with customers; the definition of performance obligations and conclude on the timing of revenue recognition under IFRS 15: Revenue from Contracts with Customers. In turn, this provides a useful practical example of how, in general terms, an organisation’s business model can be used to provide a more transparent account of financial performance. The research also makes an important contribution by showing how, without requiring amendments to existing accounting standards, financial reporting can be informed by details on the value creation process explained in a company’s integrated report. Journal: South African Journal of Accounting Research Pages: 240-254 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1205248 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1205248 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:240-254 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1209724_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: C Thiart Author-X-Name-First: C Author-X-Name-Last: Thiart Title: A critical analysis of ‘received by or accrued to’ as contemplated in the ‘gross income’ definition in section 1 of the Income Tax Act with reference to the Consumer Protection Act Abstract: The introduction of the Consumer Protection Act 68 of 2008 has had significant implications for the South African commercial arena. This Act forms part of government regulation and is aimed at protecting the rights of consumers.Not only does the Consumer Protection Act 68 of 2008 have a significant impact on the manner in which parties conduct business; it also affects the accounting and taxation treatment of amounts that fall within the scope of the Act.This article investigated the effect of the provisions contained in section 62 to section 65 of the Consumer Protection Act 68 of 2008 on the tax implications of certain amounts. These amounts include lay-bys, prepaid certificates, credits, vouchers and deposits (prepaid amounts).Particular attention was given to the meaning of receipts and accruals within the definition of gross income in section 1 of the Income Tax Act 58 of 1962, and the effect of section 62 to section 65 of the Consumer Protection Act 68 of 2008 on this Act.A literature review of the relevant legislation, terms used therein, and further applicable literature was undertaken. The study concluded with three recommendations in order to align the different items of legislation. The first is to extend section 65 of the Consumer Protection Act 68 of 2008 to include the requirements that must be met to prove that a supplier adheres to the fiduciary duty imposed on it by the Consumer Protection Act 68 of 2008. The South African Revenue Service must consider an amendment to the gross income definition, or specific legislation to this effect. Alternatively, the South African Revenue Service must provide the supplier with its view on and interpretation of section 62 to section 65 of the Consumer Protection Act 68 of 2008 and the applicability thereof on the definition of gross income, as contained in section 1 of the Income Tax Act 58 of 1962. Journal: South African Journal of Accounting Research Pages: 255-268 Issue: 3 Volume: 31 Year: 2017 Month: 9 X-DOI: 10.1080/10291954.2016.1209724 File-URL: http://hdl.handle.net/10.1080/10291954.2016.1209724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:31:y:2017:i:3:p:255-268 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1342348_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: M. H.Y. Razak Author-X-Name-First: M. H.Y. Author-X-Name-Last: Razak Author-Name: L. J. Stainbank Author-X-Name-First: L. J. Author-X-Name-Last: Stainbank Title: Fair value accounting by listed South African companies in the non-financial sector Abstract: This study uses a content analysis of 82 listed South African companies’ annual reports to determine the extent to which South African listed companies in the non-financial sector choose optional fair value accounting (FVA). The study found that almost all companies disclosed historical cost as their primary measurement basis, disclosed FVA for financial instruments as the exception to the historical cost basis, and generally did not choose the fair value option in areas where International Financial Reporting Standards offer a free choice of whether or not to apply FVA. More specifically, most companies did not choose optional FVA for property, plant and equipment and did not choose optional FVA for intangible assets. Seventy-eight percent (78%) of the non-property investment companies did not choose optional FVA for investment properties in contrast to the property-investment companies where nearly all adopted optional FVA to account for their investment properties. Ninety-six percent (96%) of companies did not account for investments in subsidiaries, associates and joint ventures at fair value in their separate financial statements. The study therefore concludes that companies generally do not adopt optional FVA where there is a choice of whether to do so or not. Journal: South African Journal of Accounting Research Pages: 1-24 Issue: 1 Volume: 32 Year: 2018 Month: 1 X-DOI: 10.1080/10291954.2017.1342348 File-URL: http://hdl.handle.net/10.1080/10291954.2017.1342348 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1342326_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ellané van Wyk Author-X-Name-First: Ellané Author-X-Name-Last: van Wyk Author-Name: Tertius Troost Author-X-Name-First: Tertius Author-X-Name-Last: Troost Title: An investigation into the normal tax implications of a carried interest in South Africa Abstract: ‘Carried interest’ is not defined in the South African Income Tax Act 58 of 1962 as amended (the Act), nor has it been subject to scrutiny in South African courts. Uncertainty prevails regarding the classification of a carried interest for normal tax purposes in SA. This article investigated the possible normal tax treatment of a carried interest for a fund manager regarding the definition of a fringe benefit, or, alternatively in terms of the gross income definition of the Act. Distinction was made between the initial receipt of a carried interest and the subsequent cash flow therefrom upon liquidation of the fund. The effect of section 9C of the Act was also considered. The current normal tax treatment of a carried interest in the USA and the Netherlands facilitated an interesting comparison and provided some perspective. Finally, the effect of the guidelines formulated by the South African courts on the underlying investments of, and consequently on a carried interest in, an investment fund was also considered. It was concluded that the cash flow from a carried interest and its subsequent distribution to fund managers is capital in nature, except where one of three exceptions are present. The authors conclude that guidelines are required that consider the hybrid character of a carried interest. It is suggested that specific legislation is considered for the taxation of a carried interest. Such legislation must be researched to ensure that the change will not result in the withdrawal of foreign investment from South Africa, or an exodus of current resident investment funds. Journal: South African Journal of Accounting Research Pages: 25-45 Issue: 1 Volume: 32 Year: 2018 Month: 1 X-DOI: 10.1080/10291954.2017.1342326 File-URL: http://hdl.handle.net/10.1080/10291954.2017.1342326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:1:p:25-45 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1409869_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gretha Steenkamp Author-X-Name-First: Gretha Author-X-Name-Last: Steenkamp Author-Name: Nicolene Wesson Author-X-Name-First: Nicolene Author-X-Name-Last: Wesson Title: Share-based incentives for South African CEOs: Trends 2002−2015 Abstract: Share-based incentives, which theoretically align executive and shareholders’ interests (agency theory), comprise a significant portion of executive remuneration. Detractors propose that such incentives could allow rent extraction (managerial power theory). To enable proper governance, stakeholders (both shareholders and regulators) need to be aware of the characteristics of share-based incentives. The aim of this study was to evaluate the trends relating to executive share-based incentives, as well as the reliability of available data sources thereof, in South Africa. Firstly, a trend analysis (2002−2015) was done for companies listed on the Johannesburg Stock Exchange. Share options were the most popular share-based incentive until 2008, but were then replaced by share appreciation rights (SARs) and later by full quantum schemes (performance and restricted shares). Compared to global evidence, SARs were popular for longer and full quantum schemes became prevalent later in South Africa. Increased use of full quantum schemes in later years signal improved alignment of executive/shareholder interest (in line with the agency theory). This study, secondly, commented on the reliability of the IRESS financial database in recording share-based incentives, when compared to the annual financial statements (AFS). Numerous discrepancies in IRESS significantly detracted from its usefulness as a sole data source when evaluating executive share-based incentives. Divergent disclosure practices in the AFS increased the risk that executives in South Africa could be utilising share-based incentives to extract rents from companies. It is recommended that regulators should prescribe comprehensive standardised disclosure for share-based incentives. Journal: South African Journal of Accounting Research Pages: 46-70 Issue: 1 Volume: 32 Year: 2018 Month: 1 X-DOI: 10.1080/10291954.2017.1409869 File-URL: http://hdl.handle.net/10.1080/10291954.2017.1409869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:1:p:46-70 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1414349_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rudie Nel Author-X-Name-First: Rudie Author-X-Name-Last: Nel Title: Investor tax-driven preferences for dividends and share repurchases of listed companies Abstract: Tax reform in South Africa has been extensive since 2011, with the amendment of ‘dividend’ as defined, followed by the introduction of dividends tax and consecutive increases in the applicable tax rates. Extant literature predominantly focuses on periods prior to these reforms and understates the role of taxes in a choice between dividends and share repurchases. The purpose of this article is to enunciate the increased role of taxes in a preference for dividends and share repurchases as a result of tax reform. An exploratory study was performed in which the nominal after-tax value of a R100 dividend or share repurchase was calculated for an individual, corporate and fund investor over a period of tax reform. A tax differential was then calculated to quantify the magnitude of changes over the different periods. Evidence of higher tax differentials from tax reform in 2011, which also resulted in certain tax-induced preferences for dividends and share repurchases. The change in tax-induced preferences is submitted as an indication of the increased role of taxes as a result of the reform. It is submitted that a corporate shareholder is the most affected by the tax reform based on the category taxpayer with the highest tax differentials since the tax reform in 2011. Journal: South African Journal of Accounting Research Pages: 71-87 Issue: 1 Volume: 32 Year: 2018 Month: 1 X-DOI: 10.1080/10291954.2017.1414349 File-URL: http://hdl.handle.net/10.1080/10291954.2017.1414349 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:1:p:71-87 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1414350_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wesley Rosslyn-Smith Author-X-Name-First: Wesley Author-X-Name-Last: Rosslyn-Smith Author-Name: Marius Pretorius Author-X-Name-First: Marius Author-X-Name-Last: Pretorius Title: A liabilities approach to the likelihood of liquidation in business rescue Abstract: While reorganisation procedures aim to salvage financially distressed firms, they are often abused, as uneconomic, failing firms commence with proceedings that erode value rather than preserve it. The commencement standard for business rescue is aimed at preventing such abuse, though it is often hampered by vagueness and limited practical application. Drawing on turnaround literature and the requirements of a commencement standard, this study attempts to address these drawbacks by assessing the prospect of reorganisation on commencement. The study identifies from the turnaround literature nine liabilities that could prove fatal. Under the widely-held principle of value maximisation, the researchers then propose a ‘likelihood of liquidation’ framework to evaluate, before the commencement of proceedings, the reasonable prospect of the firm’s recovering. The analysis in this paper sets the agenda for future research and provides an opportunity to explore the practical application of the framework. Journal: South African Journal of Accounting Research Pages: 88-107 Issue: 1 Volume: 32 Year: 2018 Month: 1 X-DOI: 10.1080/10291954.2017.1414350 File-URL: http://hdl.handle.net/10.1080/10291954.2017.1414350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:1:p:88-107 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1537158_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Stephan Spies Author-X-Name-First: Stephan Author-X-Name-Last: Spies Author-Name: Linda van Heerden Author-X-Name-First: Linda Author-X-Name-Last: van Heerden Title: Action 7 of the BEPS action plan and the permanent establishment status of non-resident online retailers in South Africa Abstract: Action 7 of the BEPS action plan identified a multinational tax planning strategy that typically avoids corporate tax in the consumer country by preventing the creation of a Permanent Establishment (PE) therein. This is especially relevant in South Africa’s online retail industry on the basis that the taxability of non-resident online retailers depends on the existence of a South African PE, as defined. In response to the use of tax planning structures that avoid the creation of a PE, Action 7 proposed certain amendments to the PE definition. This article investigated to what extent, if any, the proposed solutions in Action 7 could impact the definition of a PE and, consequently, the taxability of non-resident online retailers in South Africa. A literature review of publications on Action 7 was undertaken and applied to a South African case study to meet the stated objective. It was established that the applicability and impact of the amendments are case specific and depend, inter alia, on South Africa’s position on the OECD’s multilateral instrument. Should the amendments apply, the South African warehouse of a non-resident online retailer may, depending on the facts, create a PE and resulting tax liability for an enterprise that previously avoided corporate tax in South Africa. Journal: South African Journal of Accounting Research Pages: 225-245 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1537158 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1537158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:225-245 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1514140_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Elmarie Swanepoel Author-X-Name-First: Elmarie Author-X-Name-Last: Swanepoel Title: The effectiveness of audit sampling methods recommended to small and medium practices in guides published by audit regulators Abstract: The paper focuses on the quality of audits in small and medium practices (SMPs) when these audits are performed according to the freely available guidelines published by various regulatory bodies. Audit sampling is highlighted as a key component of audit quality in several reports of regulatory bodies’ inspection findings. A sampling methodology frequently used by SMPs is monetary unit sampling (MUS) in combination with either MUS or ratio projection. The effectiveness of this approach is investigated in terms of four criteria defined in the paper. Simulation was used for this purpose. Different scenarios were obtained by varying sample size, number of tainted items in the population and the total error amount. An actual revenue database was used as a point of departure. The study shows that simply following the proposed sampling guideline, can easily lead to sub-optimal use of resources. A more considered approach may alleviate this problem. Journal: South African Journal of Accounting Research Pages: 109-131 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1514140 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1514140 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:109-131 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1487503_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Marelize Malan Author-X-Name-First: Marelize Author-X-Name-Last: Malan Author-Name: Nerine Stegmann Author-X-Name-First: Nerine Author-X-Name-Last: Stegmann Title: Accounting students’ experiences of peer assessment: A tool to develop lifelong learning Abstract: The accounting profession highlights lifelong learning as a vital fundamental competency. Peer assessment, self-assessment and self-directedness contribute to the development of lifelong learning skills. These interrelated skills should be fostered through higher education programmes, requiring intentional interventions. Peer assessment is regarded as an under-utilised intervention in the undergraduate accounting programme of South African universities. In order to assess the experience of students of a peer assessment intervention, students were required to mark the assignment of a peer and provide him or her with feedback. The peer was then allowed to attempt to improve on the assignment, based on feedback: a ‘review – revise – resubmit’ approach. The research is based on a mixed methods design called concurrent triangulation. It was found that students recognised the value of peer assessment in contributing to their ability to learn independently, take responsibility for their own learning, assume the position of a peer assessor and self-assess, all aspects ascribed to self-directedness. The research furthermore found that peer assessment could enhance students’ understanding of the assessment process and stimulate collaborative learning, both aspects impacting the development of lifelong learning skills needed for future academic development and application in professional careers. Journal: South African Journal of Accounting Research Pages: 205-224 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1487503 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1487503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:205-224 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1442649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Elmarie Papageorgiou Author-X-Name-First: Elmarie Author-X-Name-Last: Papageorgiou Author-Name: Chris William Callaghan Author-X-Name-First: Chris William Author-X-Name-Last: Callaghan Title: Personality and adjustment in South African higher education accounting studies Abstract: This study seeks to investigate the contribution of individual personality differences to diverse aspects of accounting student adjustment to university in the context of a South African university. In a context in which many have but one opportunity to access higher education, knowledge of specific personality-related vulnerabilities to adjustment is considered. Multiple linear regression analysis was applied to 939 questionnaire responses of first-year accountancy students. Findings indicate that conscientiousness may offer an adjustment advantage across almost all adjustment dimensions, and neuroticism might represent a specific vulnerability. Findings may have implications for university contexts globally which share similarities with the South African university context of increasing diversity. Journal: South African Journal of Accounting Research Pages: 189-204 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1442649 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1442649 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:189-204 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1514141_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gizelle D. Willows Author-X-Name-First: Gizelle D. Author-X-Name-Last: Willows Author-Name: Jessica A. Rockey Author-X-Name-First: Jessica A. Author-X-Name-Last: Rockey Title: Share price reaction to financial and integrated reports Abstract: This study analyses whether significant cumulative average abnormal returns (CAAR) are observed before and after the release of financial results and integrated reports. The study was completed through the use of event study methodology, based on the capital asset pricing model for the top 40 companies listed on the Johannesburg Stock Exchange, over the period from 2012 to 2015. The study finds evidence of statistically significant CAAR. Furthermore, there appears to be stronger market reaction to the release of financial results than integrated reports. The resulting conclusion highlights the lagging trend of share price movements in relation to financial statement releases, while clarifying the lack of any noticeable reaction to the release of integrated reports. The study provides insight into market reaction and, given the increased research on the value of the integrated report, creates an awareness that is important for application of accounting practice. Journal: South African Journal of Accounting Research Pages: 174-188 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1514141 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1514141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:174-188 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1465149_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nadia Mans-Kemp Author-X-Name-First: Nadia Author-X-Name-Last: Mans-Kemp Author-Name: Suzette Viviers Author-X-Name-First: Suzette Author-X-Name-Last: Viviers Title: Executive performance evaluation and remuneration: Disclosure and practices of selected listed South African companies (2002−2015) Abstract: Given growing inequality in South Africa, shareholders are increasingly questioning the size and composition of executive remuneration packages. They are also demanding greater transparency on the criteria and processes used to award performance incentives. The researchers hence investigated the extent and depth to which a sample of companies listed on the Johannesburg Stock Exchange (JSE) disclosed details on their executive performance evaluations. Attention was furthermore given to whether these companies reported a link between their executives’ pay and performance. The criteria and time frames used to evaluate and reward executive performance were also explored. Content analysis was performed on 2 136 annual/integrated reports over the period 2002 to 2015. Semi-structured personal interviews were also conducted with six directors serving on local remuneration committees. Controlling for company size, a significant increase was noted in the number of JSE-listed companies that disclosed information on their executive performance evaluations over the research period. The depth of these disclosures, however, remains superficial. As such, shareholders are constrained in their ability to hold remuneration committees accountable. These committees are encouraged to adopt a wider range of performance criteria and re-assess their focus on short-term performance. It is also suggested that commerce educators cultivate an appreciation for long-term, sustainable value creation among graduates. Journal: South African Journal of Accounting Research Pages: 154-173 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1465149 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1465149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:154-173 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1505265_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gerhard Nienaber Author-X-Name-First: Gerhard Author-X-Name-Last: Nienaber Author-Name: Barend Barnard Author-X-Name-First: Barend Author-X-Name-Last: Barnard Title: The effect of passenger vehicle CO2 emissions tax on consumer behaviour relating to new car purchase decisions Abstract: Carbon dioxide (CO2) emissions and the resultant negative effects thereof on the environment due to climate change remain a global challenge. In South Africa, passenger vehicles contribute significantly to the amount of CO2 that is emitted into the atmosphere. In an effort to address this challenge, South Africa introduced a CO2 emissions tax from 1 September 2010. The aim of this tax is to make the vehicles on South Africa’s roads more environmentally friendly by influencing consumer behaviour at the point of a new car purchase. This paper considers the effect of this tax by way of a survey that targeted consumers who have bought a new passenger vehicle since the implementation of the tax. The paper aimed to measure consumers’ awareness of and insight into this CO2 emissions tax, as well as to determine whether the CO2 emissions tax influenced their purchasing decision. The results of this survey indicate that most consumers are not aware of the CO2 emissions tax. There is thus evidence to substantiate that the CO2 emissions tax has not achieved its purpose of making South Africa’s fleet of motor vehicles more environmentally friendly by changing consumers’ behaviour through influencing the purchase decision relating to new car sales. Journal: South African Journal of Accounting Research Pages: 132-153 Issue: 2-3 Volume: 32 Year: 2018 Month: 9 X-DOI: 10.1080/10291954.2018.1505265 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1505265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:32:y:2018:i:2-3:p:132-153 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1600236_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Terry Tu Author-X-Name-First: Terry Author-X-Name-Last: Tu Author-Name: Magda Turner Author-X-Name-First: Magda Author-X-Name-Last: Turner Title: Tax as an option to fund the proposed National Health Insurance fund: What do knowledgeable individuals think? Abstract: This research paper seeks to answer the question: What tax or combination of taxes knowledgeable individuals think the South African government can use as a potential source of revenue to fund the proposed National Health Insurance?The research methodology adopted is of an exploratory interpretive nature as it deals with the opinions of respondents. This methodology is well suited to the research process as the goal is to obtain and explore knowledgeable individuals’ opinions on what they perceive to be the best tax or combination of taxes which can be used as a potential source of revenue to finance the National Health Insurance fund. The method initially comprised a normative study, focusing on a literature review, the results of which were then used to create a self-developed questionnaire.This research aims to contribute to the body of knowledge which the South African government can consider when making a decision on a tax or combination of taxes as a possible method of financing. A sample of 91 people consisting of 40 tax practitioners (44%), 33 academics (36.2%) and 18 economists (19.8%) were asked to complete the questionnaire. The resultant data were subjected to various statistical analysis methods, including factor analysis, Kruskal-Wallis tests and Cluster analysis.The results reveal that (a) an increase in Value-Added tax is perceived as being justifiable, fair and efficient, while (b) an increase in taxes on individuals or an introduction of payroll taxes is not. The respondents suggest that funds be ring-fenced for National Health Insurance as this will increase accountability and prevent the funds from being expropriated during the budgetary process. Journal: South African Journal of Accounting Research Pages: 1-20 Issue: 1 Volume: 33 Year: 2019 Month: 1 X-DOI: 10.1080/10291954.2019.1600236 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1600236 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1558808_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Riette Zulch Lombard Author-X-Name-First: Riette Zulch Author-X-Name-Last: Lombard Author-Name: Linda van Heerden Author-X-Name-First: Linda Author-X-Name-Last: van Heerden Title: South African Value-Added Tax: Place of supply rules for cross border supplies of consulting services Abstract: The South African Value-Added Tax Act, 89 of 1991 does not contain any explicit place of supply rules to determine the jurisdiction where a cross border supply of services should be taxed, except in respect of foreign electronic service providers. Inferred place of supply rules are however interwoven into various provisions of the VAT Act. The OECD developed a set of recommended rules to determine the place of taxation for cross border supplies of services and intangibles. This serves as a reference point for jurisdictions when implementing their VAT legislation, and are described in Chapter 3 of the OECD’s International VAT/GST Guidelines. The primary objective of this article is to determine whether the inferred place of supply rules in the VAT Act are in harmony with the aforementioned recommended rules in the OECD Guidelines in respect of various scenarios of cross border supplies of consulting services. The conclusion is that the inferred place of supply rules in the VAT Act are not in harmony with the recommended rules in the OECD Guidelines in all scenarios of cross border supplies of consulting services. Recommendations are made how the VAT Act can be amended to bring the aforementioned inferred place of supply rules in harmony with the OECD’s recommended rules. This article however does not consider whether the OECD Guidelines are appropriate for developing countries such as South Africa and accordingly, whether South Africa should adopt the recommended rules as proposed in the OECD Guidelines. The recommended changes should thus only be considered if it is found that the OECD model is, in fact, appropriate for South Africa. Journal: South African Journal of Accounting Research Pages: 21-40 Issue: 1 Volume: 33 Year: 2019 Month: 1 X-DOI: 10.1080/10291954.2018.1558808 File-URL: http://hdl.handle.net/10.1080/10291954.2018.1558808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:1:p:21-40 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1600237_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cara Thiart Author-X-Name-First: Cara Author-X-Name-Last: Thiart Title: Tax governance compliance: An exploratory study of the 50 largest Johannesburg Stock Exchange-listed companies Abstract: In line with current international sentiment which promotes greater transparency, the King Committee on Corporate Governance in South Africa updated its corporate governance framework through the issue of the King IV Report on Corporate Governance for South Africa, which replaced the King III Report on Corporate Governance for South Africa with effect 1 April 2017. The King IV Report on Corporate Governance for South Africa now specifically includes the formulation of a tax policy and strategy within the ambit of responsibilities of the board of directors and states that the organisation’s tax policy must be ‘transparent’ and ‘responsible’. The objective of the study was threefold: Firstly, to develop a tax reporting framework that incorporates the principles of good tax governance to ensure transparent and responsible tax policies and practices in South Africa. Secondly, to use the developed tax reporting framework to measure the tax reporting performance of the 50 largest Johannesburg Stock Exchange (JSE)-listed organisations in South Africa. Thirdly, to produce a holistic and strategic methodology for South African organisations to employ as a standard and pragmatic approach that incorporates the responsible and transparent tax policy requirements of the King IV Report on Corporate Governance. The study commences with a literature review of established international trends on good tax governance, continues by aligning these international trends with principles from the King IV Report on Corporate Governance for the South African context and concludes with descriptive statistics to measure the performance of South African JSE-listed organisations against these trends. It was found that less than half of the 50 largest JSE-listed organisations comply with more than 50 per cent of the disclosure criteria as recommended by international practice on good tax governance. Only 25 per cent of organisations complied with 65 per cent or more of the disclosure criteria. Of such organisations, 75 per cent are primarily listed on a stock exchange other than the JSE with a secondary listing on the JSE. It is evident that most primarily listed JSE-listed organisations do not meet international criteria of good tax governance. It is therefore submitted that the presented methodology may contribute to South African governance literature. Journal: South African Journal of Accounting Research Pages: 41-58 Issue: 1 Volume: 33 Year: 2019 Month: 1 X-DOI: 10.1080/10291954.2019.1600237 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1600237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:1:p:41-58 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1596559_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rudie Nel Author-X-Name-First: Rudie Author-X-Name-Last: Nel Author-Name: Nicolene Wesson Author-X-Name-First: Nicolene Author-X-Name-Last: Wesson Title: The timing of dividend declarations based on a forthcoming change in dividend tax regime Abstract: Background: The anticipated change in tax regime in South Africa during 2012 provided the opportunity to investigate the role of taxes in affecting corporate payout behaviour.Aim: The aim of this study was to investigate whether dividend declarations were accelerated or postponed during 2012 for a sample of companies listed in South Africa based on the financial years 2009 to 2015.Methods: Firstly, a mixed model analysis of variance was employed to investigate the trend in mean days-to-declaration of final and interim dividends and whether the days-to-declaration of dividends in 2012 differed significantly from other years. Secondly, an investigation at individual company level was performed to gain an insight into the timing of declarations before and after 1 April 2012, the non-declaration of dividends during 2012 and special dividends during 2012.Results: For final dividends findings do not suggest an acceleration or postponement during the 2012 financial years of companies selected. For interim dividends, a significant increase in the days-to-declaration during 2012 was noted (indicative of a postponement during 2012). An investigation at individual company level of interim dividend declarations before and after 1 April 2012 furthermore supports a tax explanation for the postponement noted during 2012. Non-declarations of dividends and special dividends during 2012 were not noted as being utilised for the postponement or acceleration of dividends during 2012. The findings of this study contribute to dividend policy literature by providing empirical evidence that the timing of interim dividend declarations was adjusted in the year of an anticipated tax reform. Journal: South African Journal of Accounting Research Pages: 59-75 Issue: 1 Volume: 33 Year: 2019 Month: 1 X-DOI: 10.1080/10291954.2019.1596559 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1596559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:1:p:59-75 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1638588_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Corlia Janse van Vuuren Author-X-Name-First: Corlia Janse Author-X-Name-Last: van Vuuren Author-Name: Lizelle Bruwer Author-X-Name-First: Lizelle Author-X-Name-Last: Bruwer Author-Name: Annari Muller Author-X-Name-First: Annari Author-X-Name-Last: Muller Title: The nature and preliminary outcomes of a Four-dimensional Accounting Student Support (FASS) programme Abstract: A traditional student-support approach to Accounting, which involved tutoring and case-study-based independent learning, was redesigned to create a Four-dimensional Accounting Student Support (FASS) programme. The redesign was necessitated by continued poor module success rates, low graduation rates and limited engagement in teaching environments by postgraduate Accounting students, in spite of various support strategies. The FASS programme creatively considered the four dimensions of student-support programmes, namely, Operations, Academic assistance, Content, and Feedback. The redesigned programme was implemented for “at-risk” postgraduate students near graduation, with a specific focus on enhancing their academic performance and refining their personal attributes and skills for success. This article explains the design of the FASS programme and the results from the first implementation cycle. Improvements in academic success were noted, as were promising signs of the development of personal attributes and skills such as self-confidence, emotional resilience and how to move beyond content learning to understanding. Significant, and almost unexpected, was the obvious change in participants’ attitudes after being given the opportunity to take ownership of their learning. This evaluation study provides insight into one initiative to redesign student-support in the complex field of Accounting, though further research and debate are needed to refine such initiatives. Journal: South African Journal of Accounting Research Pages: 77-98 Issue: 2 Volume: 33 Year: 2019 Month: 5 X-DOI: 10.1080/10291954.2019.1638588 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1638588 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:2:p:77-98 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1638589_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cecileen Greeff Author-X-Name-First: Cecileen Author-X-Name-Last: Greeff Title: Corporate effective tax rates: An exploratory study of South African listed firms Abstract: The corporate effective tax rates (ETRs) of South African firms listed on the Johannesburg Stock Exchange (JSE) were examined for the period 2009 to 2017 to determine if there were any changes over this period. The study further investigated the determinants of the corporate ETRs at firm level for the same firms. Determinants which could possibly affect the ETR were identified based on theories established as well as firm characteristics, such as size, leverage, capital and inventory intensity, and profitability. Panel data of 38 firms (342 firm-years) were obtained from the IRESS database in respect of these variables. The data were then analysed using the random effect model. Empirical results indicate that the corporate ETRs of South African JSE-listed firms do not differ considerably from the corporate statutory tax rate. Although the findings show that more profitable and capital-intensive firms engage in tax strategies that result in lower ETRs, only a small portion of the variance in ETRs can be explained. In general, it can be concluded that the levying of corporate income tax in South Africa appears to be fairly neutral and tax incentives are not significantly influential on the corporate ETR. Journal: South African Journal of Accounting Research Pages: 99-113 Issue: 2 Volume: 33 Year: 2019 Month: 5 X-DOI: 10.1080/10291954.2019.1638589 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1638589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:2:p:99-113 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1647937_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Arson Malola Author-X-Name-First: Arson Author-X-Name-Last: Malola Author-Name: Warren Maroun Author-X-Name-First: Warren Author-X-Name-Last: Maroun Title: The measurement and potential drivers of integrated report quality: Evidence from a pioneer in integrated reporting Abstract: This paper develops a measure for integrated report quality and explores possible drivers of high-quality reporting considering a sample of large listed companies in 2015 and 2016. Data are collected from South Africa where integrated reporting has been established for a number of years and where companies have had the time to interpret and apply reporting guidelines. A detailed content analysis is used to construct a quality measure representing an accumulation of different indicators from the environmental and sustainability reporting literature. The quantity of information disclosed, the emphasis placed on different disclosures and the use of quantitative or qualitative disclosures are considered. Whether disclosures are substantive or symbolic and how easy it is for stakeholders to interpret integrated reports based on the use of infographics is also taken into account when gauging report quality. The results show that, while integrated reporting has become well established in South Africa, there is considerable room for improvement. Most disclosures are qualitative and symbolic rather than quantified and substantive. A combination of Kruskal-Wallis and Mann-Whitney U-tests shows that companies with higher quality integrated reports are those which invest in complementing their integrated reports with a sustainability report and having their disclosures externally assured. Company size, environmental and social impact, the use of a sustainability committee and compliance with the Global Reporting Initiative do not necessarily influence report quality. These findings suggest that, as integrated reporting matures, external factors contribute less to the quality of reporting and internal processes become more relevant. Journal: South African Journal of Accounting Research Pages: 114-144 Issue: 2 Volume: 33 Year: 2019 Month: 5 X-DOI: 10.1080/10291954.2019.1647937 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1647937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:2:p:114-144 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1649231_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rolien Kunz Author-X-Name-First: Rolien Author-X-Name-Last: Kunz Author-Name: Herman de Jager Author-X-Name-First: Herman Author-X-Name-Last: de Jager Title: Exploring the audit capabilities expectation-performance gap of newly employed first-year trainee accountants in Gauteng: Audit managers at large firms’ perceptions Abstract: The objective of this paper is to determine the relative size of the expectation-performance gap of technical auditing and assurance knowledge of newly employed first-year trainee accountants. In a study dealing with the expectation-performance gap in accounting education it was reported that according to practitioners, graduates were not able to demonstrate the expected practical accounting knowledge. This gives rise to the question: is the gap really as big as practitioners would like academic institutions to believe? As the relative extent of the gap will be determined in this study, the findings could assist audit and assurance academics in understanding accounting practitioners’ expectations of and concerns about newly employed first-year trainee accountants, which as a result could be addressed in their education practices. In addition, training at training offices at audit firms could be customised to focus on the areas in which the newly employed first-year trainee accountants are lacking.A questionnaire was used to determine audit managers’ perceptions regarding their expectations and their perceptions regarding the actual levels of capability demonstrated by newly employed first-year trainee accountants when performing technical audit and assurance tasks, after which the relative size of the expectation-performance gap was determined. The findings indicate that audit managers do not expect newly employed first-year trainee accountants to be capable of performing any of the identified technical audit and assurance tasks without, or with only limited supervision. However, despite this rather low expectation, it was evident that newly employed first-year trainee accountants do not meet audit managers’ expectations. The technical audit and assurance task with the largest expectation-performance gap was the ability of newly employed first-year trainee accountants to consider and document the need to use computer-assisted audit techniques to gather audit evidence, with an expectation-performance gap of 28.9%. Journal: South African Journal of Accounting Research Pages: 145-162 Issue: 2 Volume: 33 Year: 2019 Month: 5 X-DOI: 10.1080/10291954.2019.1649231 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1649231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:2:p:145-162 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1655189_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Carla Coetzee Author-X-Name-First: Carla Author-X-Name-Last: Coetzee Author-Name: Karin Barac Author-X-Name-First: Karin Author-X-Name-Last: Barac Author-Name: Joanne Seligmann Author-X-Name-First: Joanne Author-X-Name-Last: Seligmann Title: Institutional logics and sustainability of selected small and medium-sized audit firms Abstract: Although an abundance of research exists concerning larger audit firms, studies on small-scale audit firms are scarce. This study investigates how small and medium-sized audit firms deal with professional and commercial logic for sense-making and legitimisation of their strategies and practices to remain sustainable, particularly as audit practices, in a changing environment. The study focuses on a specific change event, namely a change in legislation that resulted in mandatory audit relief for certain small and medium-sized enterprises. Following a multiple-case study design, a qualitative research approach was used to show that small and medium-sized audit firms responded to a threat to their sustainability in an environment transformed by new legislation, by broadening the service offerings which coincided with selective adoption of practices related to commercial logic. Those retaining a more focused professional orientation had a positive outlook on the sustainability of their audit practices. Journal: South African Journal of Accounting Research Pages: 163-186 Issue: 3 Volume: 33 Year: 2019 Month: 9 X-DOI: 10.1080/10291954.2019.1655189 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1655189 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:3:p:163-186 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1662210_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: George Nel Author-X-Name-First: George Author-X-Name-Last: Nel Author-Name: Roelof Baard Author-X-Name-First: Roelof Author-X-Name-Last: Baard Title: Minimum corporate website disclosure levels and information asymmetry: Evidence from Johannesburg Stock Exchange small-cap companies Abstract: The use of corporate websites as communication medium may contribute to good governance and specifically transparency as one of the basic principles of governance, mitigating the effect of the agency problem. The primary objective of this study was to ascertain the link between voluntary corporate website disclosure and information asymmetry for the smallest JSE-listed companies. Rule 26, as issued by the LSE for its AIM-listed companies, was used as proxy for disclosure while the bid-ask spread stood as a proxy for information asymmetry. The results of a content analysis showed that the majority of smaller listed JSE companies are not on par with their UK counterparts. Using agency theory, it was argued that if information voluntarily disclosed by companies on their corporate websites is useful to investors, it should theoretically decrease information asymmetry. Although empirical evidence of a negative relationship between disclosure and the bid-ask spread was found, the relationship changed to not significant once controlled for market capitalisation. Besides the bid-ask spread, the association between disclosure and both share price volatility and share turnover (both as alternative proxies for information asymmetry) was tested, and both were found non-significantly related to disclosure. The results reported do suggest that the Rule 26 minimum corporate website disclosures may not be sufficient in persuading investors to change their trading behaviour. Although there has been no research on the voluntary compliance and effect of Rule 26 website disclosure on information asymmetry using JSE small-cap data, a major limitation of this study is that generalisation of results is limited to small listed companies. Journal: South African Journal of Accounting Research Pages: 187-204 Issue: 3 Volume: 33 Year: 2019 Month: 9 X-DOI: 10.1080/10291954.2019.1662210 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1662210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:3:p:187-204 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1662212_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Teresa M. Pidduck Author-X-Name-First: Teresa M. Author-X-Name-Last: Pidduck Title: Tax research methodology for untested legislation: An exemplar for the tax scholar Abstract: Tax scholars using typical doctrinal and reform-oriented methodologies often struggle to articulate the process undertaken in their research and at the same time, these methods often require an analysis of legislation that has already been the subject of judicial inquiry. However, this raises the challenge of what method to employ in the absence of such judicial inquiry. The tax environment has become so dynamic that law reform occurs rapidly and the law has to be researched, in the absence of case law post legislative amendment. This article provides tax scholars with a methodological approach described as a structured pre-emptive analysis that overcomes this problem (in other words an adaptation of typical doctrinal reform-oriented approaches). Using an exemplar of an actual tax law problem, the paper demonstrates how to conduct rigorous research in the absence of case law dealing with legislation that is the subject of enquiry. The article makes two contributions. First, it gives transparency to the traditional doctrinal reform-oriented methods primarily used in law. Second, it illustrates a method that can be used to overcome the absence of case law. Journal: South African Journal of Accounting Research Pages: 205-219 Issue: 3 Volume: 33 Year: 2019 Month: 9 X-DOI: 10.1080/10291954.2019.1662212 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1662212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:3:p:205-219 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1638590_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nabeelah Daniels Author-X-Name-First: Nabeelah Author-X-Name-Last: Daniels Author-Name: Riyaan Davids Author-X-Name-First: Riyaan Author-X-Name-Last: Davids Title: Retaining newly qualified chartered accountants: A South African case study Abstract: Retention of employees of the millennial generation is becoming an increasing problem for employers throughout the world. It has been found in prior research that higher levels of job satisfaction by employees in organisations was a key determinant in improving employee retention levels. This had the effect of increasing the ability of organisations to be competitive in the market. The focus of this study is to determine the levels of job satisfaction of newly qualified chartered accountants. It then goes further by analysing the factors which influence their overall levels of job satisfaction. The results are valuable for employers of chartered accountants from the millennial generation in that it allows employers to better understand and improve working conditions in their organisations in order to increase overall job satisfaction levels, reduce employee turnover and ultimately increase organisations’ competitive positions in the market.The study focused on analysing the overall levels of job satisfaction of chartered accountants classified as millennials employed inside and outside of academia as these were identified as the two broad groups within which chartered accountants were employed. The findings found that chartered accountants employed in academia experienced a significantly higher level of job satisfaction than their counterparts employed outside of academia. The factors found to be most important in an ideal job for newly qualified CAs were remuneration, flexibility, ability to grow professionally, working hours, meaningfulness of work, and being challenged at work. The results found that chartered accountants employed in academia experienced significantly higher levels of fulfilment in the following factors; remuneration, flexibility, working hours, and meaningfulness of work. Journal: South African Journal of Accounting Research Pages: 220-235 Issue: 3 Volume: 33 Year: 2019 Month: 9 X-DOI: 10.1080/10291954.2019.1638590 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1638590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:33:y:2019:i:3:p:220-235 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1667646_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Michael Harber Author-X-Name-First: Michael Author-X-Name-Last: Harber Author-Name: Ben Marx Author-X-Name-First: Ben Author-X-Name-Last: Marx Title: Audit quality and independence concerns in the South African audit industry: Contrasting views Abstract: Audit quality in South Africa is perceived by the audit regulator to be deteriorating, with the primary cause being a compromise of auditor independence, mostly as a result of excessively long audit firm tenures. The regulator has responded with mandatory audit firm rotation (MAFR). The purpose of this research is to employ field surveys to collect the views of experienced audit committee (AC) chairs, chief financial officers (CFOs) and auditors of JSE-listed companies on the necessity for, and potential efficacy of, this regulation. An additional focus of the paper is to explore potential unintended outcomes, as well as identify preferred alternatives and provide recommendations and practical solutions to negative effects. Findings show that auditors, CFOs and AC chairs are strongly opposed to MAFR in South Africa on a cost-benefit analysis. Respondents do not believe that audit quality and independence has deteriorated and feel that existing measures to safeguard auditor independence are sufficient. In addition, the loss of knowledge and experience of the clients that will result from firm rotation, together with other unintended consequences such as unmanageable cost increases, provide further reasons not to implement MAFR. Findings also indicate that MAFR will not contribute towards decreasing the dominance of the market by the ‘Big 4’ firms. Practical recommendations are suggested based on the findings. Journal: South African Journal of Accounting Research Pages: 1-23 Issue: 1 Volume: 34 Year: 2020 Month: 1 X-DOI: 10.1080/10291954.2019.1667646 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1667646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1667647_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wesley Rosslyn-Smith Author-X-Name-First: Wesley Author-X-Name-Last: Rosslyn-Smith Author-Name: Nicole Varela Aguiar De Abreu Author-X-Name-First: Nicole Varela Aguiar Author-X-Name-Last: De Abreu Author-Name: Marius Pretorius Author-X-Name-First: Marius Author-X-Name-Last: Pretorius Title: Exploring the indirect costs of a firm in business rescue Abstract: It may be argued that the indirect costs of financial distress are substantially higher than the direct costs. Consequently, indirect costs of participating in a formal turnaround may hinder the success of a reorganisation attempt. This study set out to explore the indirect costs financially distressed firms face as a consequence of participating in business rescue in South Africa. Due to the implicit nature of these costs, the focus was placed on investigating and identifying the sources of the indirect costs associated with business rescue. This study employed a qualitative research design, whereby semi-structured interviews were conducted with 13 business rescue practitioners. The study confirmed that firms may experience six difficulties during business rescue. However, there are several factors that influence the severity of these difficulties. Conversely, it appears that indirect costs may also offer firms several benefits. The results of the study may assist affected parties, as they offer some insight and clarity on the indirect costs of business rescue. Understanding indirect costs may assist stakeholders involved in the process to find strategies that will help to preserve the value of the firm and reduce the negative impact for all stakeholders involved. Journal: South African Journal of Accounting Research Pages: 24-44 Issue: 1 Volume: 34 Year: 2020 Month: 1 X-DOI: 10.1080/10291954.2019.1667647 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1667647 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:1:p:24-44 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1668120_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Charles Day Author-X-Name-First: Charles Author-X-Name-Last: Day Title: Goodwill impairment testing disclosures – South African compliance in 2018 Abstract: This paper reviews compliance with the IAS 36 goodwill impairment testing disclosure requirements by South African entities included in the All Share Index of the Johannesburg Stock Exchange. A detailed extraction of disclosures provided by entities with material levels of goodwill was compared to the key requirements. The approach taken is grounded in an assumption that the diligence with which preparers attend to visible disclosures acts a “litmus test” of the reliability of the invisible workings of the “black box” of impairment testing. The results are analysed through a critical narrative proposing insights relevant to preparers, auditors, regulators, and standard-setters. Consistent with results of studies in other jurisdictions the disclosures of South African entities are often incomplete and inconsistent, presented in a minimalist, generic, “boiler-plate” fashion considered to be of limited use to decision-makers assessing the reliability of impairment testing. This is the first known detailed review of South African levels of compliance with goodwill impairment testing disclosure requirements offered as an initial contribution to assessing the reliability of goodwill balances reported by South African corporate entities. Journal: South African Journal of Accounting Research Pages: 45-62 Issue: 1 Volume: 34 Year: 2020 Month: 1 X-DOI: 10.1080/10291954.2019.1668120 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1668120 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:1:p:45-62 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1667637_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Marese Lombard Author-X-Name-First: Marese Author-X-Name-Last: Lombard Author-Name: Alta Koekemoer Author-X-Name-First: Alta Author-X-Name-Last: Koekemoer Title: Conceptual framework for the evaluation of sugar tax systems Abstract: The World Health Organization has urged countries to implement a sin tax on items containing high levels of sugar to address the current worldwide obesity epidemic. Consequently, sugar taxes have become increasingly popular. However, many sugar tax systems are implemented without considering whether these systems are appropriate in addressing the obesity problem or are sustainable in the long run. In order for a tax system to be sustainable, it has to be compliant with the principles of a good tax system. These principles, however, are general in nature and have not been adapted for a sugar tax system. This article shows the modification of general principles of a good tax system to be specifically applicable to that of a sugar tax system. The modified tax principles can be applied to determine whether a sugar tax system is the appropriate tool to address obesity as well as its sustainability in future. A conceptual framework is established by using chain of referral sampling in order to identify modern tax principles. These principles are adapted to fit a sugar tax system by determining the influence of various sugar tax system design types on these principles. The conceptual framework provides guidelines to legislators regarding the development of such a system depending on the importance of each principle. Since the principles are sometimes oppositional in nature, trade-offs between the principles are inevitable. The framework does, however, provide guidance as to what could possibly be regarded as a highly acceptable option. Journal: South African Journal of Accounting Research Pages: 63-90 Issue: 1 Volume: 34 Year: 2020 Month: 1 X-DOI: 10.1080/10291954.2019.1667637 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1667637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:1:p:63-90 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1750544_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ilse Lubbe Author-X-Name-First: Ilse Author-X-Name-Last: Lubbe Author-Name: L Peta Myers Author-X-Name-First: L Author-X-Name-Last: Peta Myers Author-Name: Annelien van Rooyen Author-X-Name-First: Annelien Author-X-Name-Last: van Rooyen Title: Introduction to Special Issue: Challenges for Academics Educating Accounting Professionals in South Africa Journal: South African Journal of Accounting Research Pages: 91-95 Issue: 2 Volume: 34 Year: 2020 Month: 5 X-DOI: 10.1080/10291954.2020.1750544 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1750544 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:2:p:91-95 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1669293_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E. A. J. Terblanche Author-X-Name-First: E. A. J. Author-X-Name-Last: Terblanche Author-Name: B. de Clercq Author-X-Name-First: B. Author-X-Name-Last: de Clercq Title: Factors to consider for effective critical thinking development in auditing students Abstract: For students to be able to adapt in a fast-changing, technology-driven world, they have to be critical thinkers. With critical thinking being viewed as a prized commodity, there is an increased emphasis on this vital skill in the auditing profession. The purpose of this article is to identify factors that should be considered for the effective development of critical thinking in auditing students through technology-based educational interventions. Principles of Interactive Qualitative Analysis (IQA) were followed whereby the perspectives of three groups of participants were obtained. A total of 30 factors (referred to as affinities in IQA methodology) were identified across the three groups. To identify key themes from these 30 factors, a thematic analysis was performed. The end result is six key themes, representing six key factors that should be considered to enhance the development of auditing students’ critical thinking through technology-based educational interventions. These include educator-related factors; student-related factors; technology-based educational interventions and tools; design and implementation of educational interventions; knowledge and skills to be developed through interventions; and teaching methodologies for critical thinking development. The findings of this article may have important implications for the auditing profession where educators are constantly challenged to seek innovative ways of developing critical thinking in their students. Journal: South African Journal of Accounting Research Pages: 96-114 Issue: 2 Volume: 34 Year: 2020 Month: 5 X-DOI: 10.1080/10291954.2019.1669293 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1669293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:2:p:96-114 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1662575_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter Lansdell Author-X-Name-First: Peter Author-X-Name-Last: Lansdell Author-Name: Ben Marx Author-X-Name-First: Ben Author-X-Name-Last: Marx Author-Name: Ahmed Mohammadali-Haji Author-X-Name-First: Ahmed Author-X-Name-Last: Mohammadali-Haji Title: Professional skills development during a period of practical experience: Perceptions of accounting trainees Abstract: Constant changes in the business environment require from inter alia, Chartered Accountants in South Africa (CA(SA)s) to develop professional skills alongside technical accountancy knowledge. These skills are a crucial component of well-rounded business leaders who are able to add value to an organisation. Practical experience is often suggested to be more effective in developing certain professional skills when compared to the development thereof in a university accounting degree (accounting programme). Practical experience in a firm before entry into the Chartered Accountancy profession (CA profession) is therefore investigated to explore the professional skills perceived to be developed during this period while gaining practical experience. The data was collected by means of a questionnaire distributed to entry-level CA(SA)s entering the CA profession in 2017. The results indicate that a period of practical experience is seen as effective in developing professional skills. The study also established that the size of the firm in which the practical experience is obtained does not have any influence on the development of professional skills. However, the industry in which practical experience is obtained, as well as the interrelationship between firm size and industry, does have an influence on the development of skills. This paper contributes to the debate on South African entry-level CA(SA)s’ professional skills, from the perspective of a developing country which is recognised for its pre-eminence in CA education and training. Journal: South African Journal of Accounting Research Pages: 115-139 Issue: 2 Volume: 34 Year: 2020 Month: 5 X-DOI: 10.1080/10291954.2019.1662575 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1662575 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:2:p:115-139 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1727081_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Monique Keevy Author-X-Name-First: Monique Author-X-Name-Last: Keevy Title: Core subjects in accounting academic programmes: Development of pervasive skills Abstract: Accounting education has in recent years increasingly emphasised the need for developing pervasive skills. This paper reports on a South African study of the perceptions of aspirant chartered accountants (CAs) on the importance of the core subjects during the academic programme, in developing pervasive skills, in the categories of ethical behaviour and professionalism, personal attributes, and professional skills. A questionnaire with open- and closed-ended questions was administered to aspirant CAs who had completed their academic programme, and were in the process of completing their training programme. Aspirant CAs reported that overall pervasive skills were most prevalent in the subject of Strategy. Ethical behaviour and professionalism skills were most prevalent in the subject of Audit, personal attribute skills were most prevalent in the subject of Strategy while professional skills were most prevalent in the subject of Accounting. Taxation received the lowest ranking overall for pervasive skills as well as for the different categories of skills. Educators need to make greater efforts to inculcate pervasive skills by using real-life, practical examples in their core subjects. Furthermore, pervasive skills should be integrated into core subjects, as these are complementary in nature. Furthermore, integrating core subjects can enhance the acquisition of pervasive skills. Journal: South African Journal of Accounting Research Pages: 140-160 Issue: 2 Volume: 34 Year: 2020 Month: 5 X-DOI: 10.1080/10291954.2020.1727081 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1727081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:2:p:140-160 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1727080_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shaun Parsons Author-X-Name-First: Shaun Author-X-Name-Last: Parsons Author-Name: Bette Davidowitz Author-X-Name-First: Bette Author-X-Name-Last: Davidowitz Author-Name: Paul Maughan Author-X-Name-First: Paul Author-X-Name-Last: Maughan Title: Developing professional competence in accounting graduates: An action research study Abstract: In 2014, the South African Institute of Chartered Accountants (SAICA) introduced the Assessment of Professional Competence (APC) as its final professional examination. The APC is an eight-hour case study assessing both the technical knowledge and pervasive skills that together represent the professional competence required of accountants entering the profession. In order to write the APC, candidates must first complete a preparatory programme designed to develop professional competence.This paper adds to the accounting education literature by identifying themes in programme design that informed the effective development of professional competence in the preparatory programme context. A four-year action research study was conducted. The initial programme design incorporated learning tools identified in the literature as effective in developing professional competence. Feedback from participating candidates was then elicited to assess the perceived contribution of each of those learning tools. This feedback was incorporated into the revised design of the next year’s programme, which was again assessed through candidate feedback. This cycle was repeated three times.The findings of this study are presented as themes emerging from the action research cycles. The study found that assessment continued to drive learning, while ‘value-adding’ material made little positive contribution. Skills development was found to be more effective when it was explicit. Individual feedback, groupwork and mentorship contributed positively to the development of professional competence, while the contribution of lectures was less clear. The study also found that large class sizes presented practical challenges to the implementation of effective learning tools. Journal: South African Journal of Accounting Research Pages: 161-181 Issue: 2 Volume: 34 Year: 2020 Month: 5 X-DOI: 10.1080/10291954.2020.1727080 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1727080 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:2:p:161-181 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1675254_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Oluwamayowa O. Iredele Author-X-Name-First: Oluwamayowa O. Author-X-Name-Last: Iredele Author-Name: Moloi Tankiso Author-X-Name-First: Moloi Author-X-Name-Last: Tankiso Author-Name: Michael O. Adelowotan Author-X-Name-First: Michael O. Author-X-Name-Last: Adelowotan Title: The influence of institutional isomorphism and organisational factors on environmental management accounting practices of listed Nigerian and South African firms Abstract: The rising profile of environmental issues, most of which relates to continuous consumption of materials, energy and water by companies, and the continuous accumulation of environmental-related costs, necessitates the need for environmental management accounting (EMA). EMA is regarded as an extension of the conventional management accounting, which is adopted for the purpose of tracking and treatment of costs, earnings and savings incurred in relation to companies’ environmental-related activities. This paper determines the level of EMA practices among selected Nigerian and South African firms, and the influence of institutional and organisational factors on the level of practice in each country. Utilising a quantitative research approach, the study used a structured questionnaire to obtain data from 22 listed firms from each country. The data were analysed using an independent sample t-test and a multiple regression estimation technique. Results demonstrate that the level of EMA practices in South African firms is higher than those in Nigerian firms. Institutional isomorphism, through coercive pressure, was found to be the main determinant of EMA practice among South African firms, while EMA practice among Nigerian firms is on account of individual organisational factors. The evidence from the study supports both the institutional and contingency theories as they apply to EMA practices. Therefore, the results indicate that coercive pressure may be necessary to stimulate EMA practice in Nigerian firms given that similar conditions exist in sampled firms in South Africa. Efforts to strengthen normative and mimetic forces can also improve the level of EMA practice in both countries. Journal: South African Journal of Accounting Research Pages: 183-204 Issue: 3 Volume: 34 Year: 2020 Month: 9 X-DOI: 10.1080/10291954.2019.1675254 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1675254 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:3:p:183-204 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1675255_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Blanche Steyn Author-X-Name-First: Blanche Author-X-Name-Last: Steyn Author-Name: Farai Kwenda Author-X-Name-First: Farai Author-X-Name-Last: Kwenda Author-Name: Lesley Stainbank Author-X-Name-First: Lesley Author-X-Name-Last: Stainbank Title: Do board-level controls matter? – An agency perspective on socially responsible investment (SRI) company boards in South Africa Abstract: If board-level controls matter, the introduction of the 2008 Companies Act with its enhanced legislative requirements, should have a positive impact on firm performance. To assess board-level controls this study developed two unique control indexes to assess the boards of 84 companies over three years. The study focuses on companies on the SRI index as they have a greater focus on sustainability and transparent disclosure of board-level controls including separation of duties, monitoring, goal-aligned remuneration and oversight. The first index uses 23 board-level control indicators (CI) and the second 19 board-level direction indicators (DI). The two indexes were assessed using fixed effects estimation methods against current and negatively lagged firm performance proxies. Results show that board-level controls matter as both indexes were positively related to return on assets (RoA), however, only DI was highly significant. Both indexes changed to a negative relationship to next year’s return on assets (NYRoA), again highly significant for DI. The change to a negative relationship suggests a timing and information asymmetry problem. CI was positively related to the natural log of enterprise value per share (LEV) with a low level of significance while the positive relation continues to the next year’s natural log of enterprise value per share (LNYEV) that was highly significant. The latter suggests that the controlling role of the board are continued to be valued by the market. Journal: South African Journal of Accounting Research Pages: 205-235 Issue: 3 Volume: 34 Year: 2020 Month: 9 X-DOI: 10.1080/10291954.2019.1675255 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1675255 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:3:p:205-235 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1675256_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Muneer Hassan Author-X-Name-First: Muneer Author-X-Name-Last: Hassan Author-Name: Michelle van Heerden Author-X-Name-First: Michelle Author-X-Name-Last: van Heerden Title: Donations tax implications of BEE transactions: More than meets the eye? Abstract: Apartheid in South Africa left a legacy of inequality in every sphere – political, social and economic. The first democratically elected government in 1994 introduced a Black Economic Empowerment (hereafter BEE) strategy to rectify these inequalities. This strategy was accompanied by a BEE Act and the BEE Codes of Good Practice. South African companies subscribed to the BEE strategy for various reasons. A salient fact in all BEE transactions is a discount element presented to the previously disadvantaged investor. This discount element raises the question of whether donations tax arises on these transactions. At first glance, the answer appears straightforward in that no donations tax should arise as this would hinder government’s policy objective of redressing the inequalities of the past. However, there is more to this issue. The purpose of the study on which this article is based was to analyse the overwhelmingly complex BEE structures that have been implemented and to determine the donations tax implications at the various transactional levels. The contribution of this study is that it revealed that tax commentators have taken a simplistic approach to answering the question and that the donations tax implications on the discount element are contentious and unclear. The authors seek to rectify this uncertainty through legislative amendment. Journal: South African Journal of Accounting Research Pages: 236-253 Issue: 3 Volume: 34 Year: 2020 Month: 9 X-DOI: 10.1080/10291954.2019.1675256 File-URL: http://hdl.handle.net/10.1080/10291954.2019.1675256 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:3:p:236-253 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1727082_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Teresa M. Pidduck Author-X-Name-First: Teresa M. Author-X-Name-Last: Pidduck Title: The Sasol Oil case – Would the present South African GAAR stand up to the rigours of the court? Abstract: South Africa finds itself vulnerable to exploitation by the measures taken by multinational enterprises (MNEs) who seek to enter into tax avoidance schemes that artificially shift profits to low- or no-tax jurisdictions. While common law, specific and general anti-avoidance measures may be used as a defence against these schemes, there has been no judicial consideration of the current South African general anti-avoidance rule (GAAR) since its replacement in 2006. In this context this paper makes two contributions. First, the paper applies the current GAAR to a recent case where the predecessor to the current GAAR was applied to a scheme entered into by an MNE. This is done in order to determine if the current GAAR (unlike its predecessor) is able to stand up to the rigours of court when presented with similar facts. In doing so it demonstrates how the untested GAAR may be interpreted and applied. Second, the paper makes suggestions for amendment to the current GAAR in order to improve its efficacy in an international context. Journal: South African Journal of Accounting Research Pages: 254-272 Issue: 3 Volume: 34 Year: 2020 Month: 9 X-DOI: 10.1080/10291954.2020.1727082 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1727082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:34:y:2020:i:3:p:254-272 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1727083_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Stefanie Geringer Author-X-Name-First: Stefanie Author-X-Name-Last: Geringer Title: National digital taxes – Lessons from Europe Abstract: Digitalisation has done more to shape the 21st century than virtually any other phenomenon. However, international tax law has seemingly failed to keep pace with rapid technological developments, which has likely led to inequalities between the tax burden of traditional and digital business models. Thus far, there has been no consensus regarding the issue of fair taxation of the digital economy at the international and EU level. As European policymakers have begun to experience noticeable amounts of pressure to act, several EU countries have pushed forward and introduced unilateral measures to ensure they receive a fair share of the tax revenues pie.However, it is unclear whether national digital taxes can overcome the tax challenges stemming from the increasing digitalisation of the economy. Thus, newly proposed and implemented national digital taxes in Europe are thoroughly elaborated in the context of their relationship with double tax treaty law, the perils of double/multiple taxation, their coherence with European law, their global and regional impact on competition and competitiveness, their contribution to tax revenues and the establishment of fair taxation conditions. The analysis concludes with a presentation of pertinent suggestions regarding national and supranational tax policy. Journal: South African Journal of Accounting Research Pages: 1-19 Issue: 1 Volume: 35 Year: 2021 Month: 1 X-DOI: 10.1080/10291954.2020.1727083 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1727083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1742458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daniël Coetsee Author-X-Name-First: Daniël Author-X-Name-Last: Coetsee Title: The underlying concepts of the definition of a liability in financial reporting: A doctrinal research perspective Abstract: Accounting literature has identified fundamental conceptual issues and uncertainties regarding the financial reporting treatment of liabilities. This paper assesses whether the underlying concepts for the definition of a liability are robust and sufficiently developed in the 2018 Conceptual Framework of the International Accounting Standards Board (IASB) to create a conceptual foundation to identify, recognise, measure and derecognise liabilities. Doctrinal research is applied to evaluate the proposed concepts by using authoritative interpretation. The outcome of the authoritative interpretation is the contribution to the accounting literature. The paper finds that the 2018 Conceptual Framework significantly improves the conceptual foundation of the identification, recognition, measurement and derecognition of liabilities. The 2018 Conceptual Framework clarifies the obligation and past event criteria of the definition of a liability and, as a result, has paved the way for removing the reference to future outflow or sacrifices in both the definition and the recognition criteria of a liability. The 2018 Conceptual Framework also implies that when meeting the definition of a liability, in principle, it appropriately triggers recognition. It also clearly defines the different measurement bases and clarifies the measurement decision process regarding liabilities, which are sufficiently based on the nature and benefits of different measurement bases and the factors of useful information. The uncertainty about the existence of a liability for incorporation in financial statements is, however, still problematic and could create uncertainty in developing related International Financial Reporting Standards (IFRSs) and in practical applications. Journal: South African Journal of Accounting Research Pages: 20-41 Issue: 1 Volume: 35 Year: 2021 Month: 1 X-DOI: 10.1080/10291954.2020.1742458 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1742458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:1:p:20-41 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1778828_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shelly Herbert Author-X-Name-First: Shelly Author-X-Name-Last: Herbert Author-Name: Mark Graham Author-X-Name-First: Mark Author-X-Name-Last: Graham Title: Application of principles from the International < IR > Framework for including sustainability disclosures within South African integrated reports Abstract: With the introduction of integrated reporting, organisations are now encouraged to integrate sustainability disclosures within their integrated reports, in addition to traditional sustainability reporting practices. The purpose of this study is to investigate whether the International < IR > Framework (the Framework) led to a change in how South African listed companies included sustainability disclosures in their integrated reports, looking specifically at the degree of integration of sustainability disclosures, the use of sustainability key performance indicators (KPIs), and the materiality and balance of sustainability disclosures included, which are all based on principles in the Framework. Interpretive content analysis is used to compare the integrated reports in 2011, when integrated reporting became mandatory in South Africa, and 2015, when the Framework was adopted. The results show that there was a significant change in the level of integration and materiality of sustainability disclosures, but there was no significant change in the use of KPIs and the balance of disclosures. This study does not seek to measure the quality of the sustainability disclosures included in the integrated reports beyond the level of the application of Framework principles. This study provides unique insight into how South African companies adapted their sustainability disclosures within their integrated reports in response to the Framework. Journal: South African Journal of Accounting Research Pages: 42-68 Issue: 1 Volume: 35 Year: 2021 Month: 1 X-DOI: 10.1080/10291954.2020.1778828 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1778828 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:1:p:42-68 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1728036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Magdel Zietsman Author-X-Name-First: Magdel Author-X-Name-Last: Zietsman Author-Name: Andrea Herron Author-X-Name-First: Andrea Author-X-Name-Last: Herron Title: The normal tax consequences of home swaps for residents owning property in the Republic of South Africa Abstract: “Home swapping” has become more accessible due to a global phenomenon, known as the sharing economy. Technological advancement has removed the barriers to international trade and members of home swapping programmes exchange rights to provide each other with accommodation in their homes both nationally and internationally. These exchanges can be facilitated through the exchange of an incorporeal non-cash benefit, constituting either points or rights and can essentially be seen as a short-term rental agreement. Incorporeal non-cash benefits fall within the ambit of a barter transaction and consequently within the scope of gross income. The main objective of this article is to determine the normal tax implications of a South African resident who owns a property in South Africa, upon receipt or accrual of the benefit of a successful home swap transaction. In order to meet this objective, South African and international literature was analysed to determine the recommended normal tax treatment of these home swap transactions. Home swap benefits were found to constitute gross income in terms of the Income Tax Act No. 58 of 1962. Journal: South African Journal of Accounting Research Pages: 69-86 Issue: 1 Volume: 35 Year: 2021 Month: 1 X-DOI: 10.1080/10291954.2020.1728036 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1728036 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:1:p:69-86 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1827851_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Marelize Malan Author-X-Name-First: Marelize Author-X-Name-Last: Malan Author-Name: Vanessa van Dyk Author-X-Name-First: Vanessa van Author-X-Name-Last: Dyk Title: Students’ experience of pervasive skills acquired through sponsored projects in an undergraduate accounting degree Abstract: An accounting graduate should not only possess technical knowledge, but also core competencies and pervasive skills necessary to meet the needs of employers and society as a whole. This study is centred on the undergraduate accounting programme of a South African university where several sponsored projects are offered to develop these skills. An exploratory design using purposive sampling was used to gain insights into the perceptions of students on whether these skills were developed throughout their degree. It was found that the students perceived the projects to have developed their critical thinking and problem-solving skills, promoted their ethical awareness and enhanced their communication skills. Students further gained a better understanding of the role of an accountant through their participation in the sponsored projects and found them effective learning experiences. The challenges reported by students were the social aspect of the projects and the ability to work successfully in a team. Journal: South African Journal of Accounting Research Pages: 130-150 Issue: 2 Volume: 35 Year: 2021 Month: 5 X-DOI: 10.1080/10291954.2020.1827851 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1827851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:2:p:130-150 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1832309_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Manda Burger Author-X-Name-First: Manda Author-X-Name-Last: Burger Author-Name: Anculien Schoeman Author-X-Name-First: Anculien Author-X-Name-Last: Schoeman Title: VAT lottery incentives: An opportunity for South Africa? Abstract: Some countries have introduced receipt-based tax lotteries (value-added tax (VAT) lotteries) in recent years in an effort to improve tax compliance. This acknowledges that the traditional method of tax compliance enforcement through audits, fines and penalties alone may no longer be optimal. The idea of a VAT lottery is to incentivise consumers to ask for a receipt when paying for goods or services, which serves as a lottery ticket that gives the consumer an opportunity to win a prize.The decline in tax compliance globally poses a threat to revenue collection and, ultimately, to governments’ ability to meet their spending commitments. Other countries, but particularly South Africa, may benefit from implementing a VAT lottery to assist in improved VAT collection. This study aims to analyse VAT lotteries that have been implemented across the world – particularly in the European Union (EU) member countries – through a systematised review in order to determine whether such a lottery could improve taxpayer compliance in South Africa.Of the six EU member countries analysed in detail, four showed a decrease in the VAT gap in the years following the VAT lottery implementation. VAT gap data post-implementation was not available for two of the countries. Positive results include an increase in the number of vendors reported for refusing to issue invoices, a reduction in the number of non-validated receipts, and increased VAT collection. The finance ministers of two countries, and the Ministry of Finance of another, publicly declared the VAT lotteries successful. Journal: South African Journal of Accounting Research Pages: 111-129 Issue: 2 Volume: 35 Year: 2021 Month: 5 X-DOI: 10.1080/10291954.2020.1832309 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1832309 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:2:p:111-129 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1817268_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mattheus Theodorus Mey Author-X-Name-First: Mattheus Theodorus Author-X-Name-Last: Mey Author-Name: Christiaan Lamprecht Author-X-Name-First: Christiaan Author-X-Name-Last: Lamprecht Title: The association between EBITDA reconciliation quality and opportunistic disclosure Abstract: Purpose: This paper investigated the potential opportunistic disclosure of ‘earnings before interest, tax, depreciation and amortisation’ (EBITDA) by analysing the association between the quality of EBITDA reconciliations and factors associated with opportunistic disclosure.Design: Ordinary least squares estimation was used to regress an EBITDA reconciliation score on factors associated with opportunistic disclosure for a sample of stock exchange news service reports of companies listed on the Johannesburg Stock Exchange (JSE) for the financial years 2014 through 2016.Findings: The results suggest that the management of JSE-listed companies signal the credibility of EBITDA as a performance measure by providing higher quality reconciliations, rather than using poor quality EBITDA reconciliations to mask potential opportunistic disclosure.Practical implications: The results suggest that JSE-listed companies use EBITDA disclosure for informational purposes, rather than for opportunistic purposes.Value: This paper contributes to a limited corpus of research on EBITDA as non-GAAP earnings measure. It provides support for the adequacy of the JSE’s disclosure requirements in facilitating high-quality financial reports. The results are timely as the JSE is contemplating whether to issue expanded disclosure requirements intended to limit the potential opportunistic use of non-GAAP earnings disclosure. Journal: South African Journal of Accounting Research Pages: 87-110 Issue: 2 Volume: 35 Year: 2021 Month: 5 X-DOI: 10.1080/10291954.2020.1817268 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1817268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:2:p:87-110 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1885233_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lewis Makosa Author-X-Name-First: Lewis Author-X-Name-Last: Makosa Author-Name: Sun Jie Author-X-Name-First: Sun Author-X-Name-Last: Jie Author-Name: Wellington Garikai Bonga Author-X-Name-First: Wellington Garikai Author-X-Name-Last: Bonga Author-Name: Moses Jachi Author-X-Name-First: Moses Author-X-Name-Last: Jachi Author-Name: Lovemore Sitsha Author-X-Name-First: Lovemore Author-X-Name-Last: Sitsha Title: Does economic policy uncertainty aggravate financial constraints? Abstract: This paper examines the impact of economic policy uncertainty on economic growth due to its effects on firms' investment decisions, which subsequently justify firms' financial constraints. Using a sample of Chinese listed firms, the study documents that economic policy uncertainty reduce firms' financial constraints. The reduction in financial constraints stems mainly from the decrease in investments which increases the firm’s cash holding. Additional tests reveal that the reduction in firms’ financial constraints is pronounced more among non-politically connected firms compared to their counterparts. Further tests reveal that a reduction in a firms' financial constraints is of a short-term nature. In the long run, economic policy uncertainty increase firms' financial constraints. The study recommends that changes in policies must be done carefully to avoid turbulence and friction in firms’ investment decisions. Journal: South African Journal of Accounting Research Pages: 151-166 Issue: 2 Volume: 35 Year: 2021 Month: 05 X-DOI: 10.1080/10291954.2021.1885233 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1885233 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:2:p:151-166 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1810504_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Helena Strauss Author-X-Name-First: Helena Author-X-Name-Last: Strauss Author-Name: Danie Schutte Author-X-Name-First: Danie Author-X-Name-Last: Schutte Author-Name: Tyson Fawcett Author-X-Name-First: Tyson Author-X-Name-Last: Fawcett Title: An evaluation of the legislative and policy response of tax authorities to the digitalisation of the economy Abstract: Tax administration and reform within the digitalised economy is an ongoing global debate. In the study, the global tax response to various elements introduced by the digitalisation of the economy is synthesised, analysed and evaluated. The study is set apart from other studies, as it provides a global and holistic overview of current tax reform of all major tax types impacted by the digitalisation of the economy. The study’s results are based on evidence collected for 120 countries worldwide and reflect that while the digitalised economy is regarded as borderless and digitalised, current international responses remain influenced by country borders and traditional tax principles that have led to global tax reform that is complex, expensive and difficult for highly digitalised multinational entities to comply with. The findings further indicate that although the recommended interim tax measures (where applicable) were adopted in principle by the majority of countries worldwide, the application of these measures lacks uniformity. It can further be deduced that international tax response to the digitalisation of the economy does not fully embrace and acknowledge the hybrid nature and digital environment of the business models associated with a digitalised economy. Journal: South African Journal of Accounting Research Pages: 239-262 Issue: 3 Volume: 35 Year: 2021 Month: 9 X-DOI: 10.1080/10291954.2020.1810504 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1810504 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:3:p:239-262 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1885242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yolanda S. Stander Author-X-Name-First: Yolanda S. Author-X-Name-Last: Stander Title: Quantifying the sources of volatility in the IFRS 9 impairments Abstract: The International Financial Reporting Standards (IFRS) 9 accounting standard gives rise to impairments that are sensitive to the economic cycle. Rules around stage migration and the incorporation of forward-looking information lead to volatility in the impairments that is not always straightforward to explain. Impairment volatility and procyclicality are interlinked with the earnings quality of a bank. Research has shown that earnings volatility generally has a negative impact on firm value and share price and is considered a proxy for business risk. The impact of impairment volatility on earnings quality, together with the more detailed IFRS disclosure requirements, highlight the importance of banks being able to quantify, explain and manage the impairment volatility. This study explores the complex relationships between the different risk components that lead to impairment volatility. A Taylor series expansion is a useful tool to allocate changes in impairments to the different risk components. Finally, strategies to manage impairment volatility are explored. Journal: South African Journal of Accounting Research Pages: 191-218 Issue: 3 Volume: 35 Year: 2021 Month: 09 X-DOI: 10.1080/10291954.2021.1885242 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1885242 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:3:p:191-218 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1735685_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kerrie Sadiq Author-X-Name-First: Kerrie Author-X-Name-Last: Sadiq Author-Name: Hanneke du Preez Author-X-Name-First: Hanneke Author-X-Name-Last: du Preez Title: The case for a universal basic income in South Africa: A conceptual approach Abstract: This conceptual study investigates a model for addressing both poverty and income inequality, which is theoretically distinct from the traditional tax and transfer systems adopted by most jurisdictions. It does so against a backdrop of global uncertainty and ongoing challenges to the current economic landscape. The model investigated is known as universal basic income (UBI) which provides a minimum payment to all citizens of a jurisdiction. In doing so it decouples income from labour and removes any means or employment tests from the receipt of assistance. To adequately address this model, a theoretical rationale for such an approach is first discussed followed by an analysis of the advantages and disadvantages. Current and previous experiments of UBI in Alaska, Switzerland, Canada, Finland, Kenya and Namibia are outlined and analysed. This is followed by a case study for the introduction of UBI in South Africa, with the conclusion that such a model is not outside the realm of political will or practicality. Journal: South African Journal of Accounting Research Pages: 167-190 Issue: 3 Volume: 35 Year: 2021 Month: 9 X-DOI: 10.1080/10291954.2020.1735685 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1735685 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:3:p:167-190 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1887440_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Corlia Janse van Vuuren Author-X-Name-First: Corlia Author-X-Name-Last: Janse van Vuuren Author-Name: Karen Bodenstein Author-X-Name-First: Karen Author-X-Name-Last: Bodenstein Author-Name: Marsha Oberholzer Author-X-Name-First: Marsha Author-X-Name-Last: Oberholzer Title: Exploring the psychological well-being of postgraduate accounting students at a South African university Abstract: The challenges associated with higher education studies can impact significantly on the psychological well-being of students and can influence their academic success, even leading to anxiety, stress and depression. Factors influencing academic success in postgraduate accounting students have been well researched, but a dearth of literature exists on their psychological well-being. This knowledge gap necessitated an investigation into the psychological well-being of postgraduate accounting students at a South African university. In this descriptive study, a self-compiled demographic questionnaire, the Multidimensional Scale of Perceived Social Support, the Utrecht Work Engagement Scale, and the Zung Self-rating Anxiety and Depression Scales were used for data collection.A total of 115 postgraduate accounting students participated in this study. Students reported a high level of support from family and friends, but their vigour and absorption regarding their full-time studies were merely average. Self-reported anxiety and depression scores indicated mild to moderate anxiety (28.7%), marked to severe anxiety (7.4%), mild to moderate depression (42.4%) and severe depression (17.2%) amongst participants. Study-related issues led to 10% of participants receiving psychological and/or psychiatric treatment and 5% using psychiatric medication. This study creates awareness of and proposes practical measures to enhance the psychological well-being of postgraduate accounting students to ultimately support academic success. Journal: South African Journal of Accounting Research Pages: 219-238 Issue: 3 Volume: 35 Year: 2021 Month: 09 X-DOI: 10.1080/10291954.2021.1887440 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1887440 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:35:y:2021:i:3:p:219-238 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1738072_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Madeleine Stiglingh Author-X-Name-First: Madeleine Author-X-Name-Last: Stiglingh Author-Name: Anna-Retha Smit Author-X-Name-First: Anna-Retha Author-X-Name-Last: Smit Author-Name: Anri Smit Author-X-Name-First: Anri Author-X-Name-Last: Smit Title: The relationship between tax transparency and tax avoidance Abstract: All over the world, the tax avoidance practices of large multinational firms have received much media attention over the last few years, which has become a prominent reputational risk for many firms. In addition to the possible reputational risk stemming from corporate tax avoidance, these tax practices can also have dire consequences for the economies in which these firms operate. Global tax transparency initiatives were developed in an attempt to address the issues created by global tax avoidance. There is, however, little academic evidence on whether increased tax transparency can have an effect on corporate tax avoidance. The purpose of this study is therefore to investigate the relationship between tax transparency and tax avoidance. A content analysis was firstly used to qualitatively assess the extent of tax transparency disclosures in the annual corporate reports of the top 100 firms listed on the JSE. Thereafter, a regression analysis was used to determine the relationship between tax transparency and tax avoidance. Tax transparency scores were used as a proxy to measure tax transparency while both effective tax rates and cash effective tax rates were used as a proxy to measure tax avoidance. The study finds that firms which are more transparent in the disclosure of their tax affairs also have higher effective tax rates and cash effective tax rates. Journal: South African Journal of Accounting Research Pages: 1-21 Issue: 1 Volume: 36 Year: 2022 Month: 1 X-DOI: 10.1080/10291954.2020.1738072 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1738072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:1:p:1-21 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1860483_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cara Thiart Author-X-Name-First: Cara Author-X-Name-Last: Thiart Title: Investigating the impact of country-by-country reporting on effective tax rates: Exploratory evidence from listed South African multinational groups Abstract: Background: Following the global initiative to curb base erosion and profit shifting, South Africa introduced Country-by-Country (CbC) reporting standards for South African multinational groups with an effective date of 1 January 2016.Aim: The study aims to develop and analyse indicators to investigate the impact of CbC reporting on the effective tax rate of South African multinational groups.Setting: The research focused on a selection of Johannesburg Stock Exchange (JSE)-listed companies, using financial data retrieved from the IRESS Expert database.Methods:Descriptive analyses were conducted on five developed measurable indicators. These indicators comprise the analysis of the average ETR of multinational groups through various approaches.Results: A comparison of the average consolidated effective tax rate (ETR) between multinational and non-multinational groups found a higher ETR for the multinational groups. The average consolidated ETR of multinational groups with a filing obligation was significantly higher than the average consolidated ETR of multinational groups without such an obligation. A comparison was conducted on the average consolidated ETR of multinational groups with a filing obligation between two stages, namely pre- and post-CbC reporting implementation. The results of this comparison revealed a highly significant increase in the average consolidated ETR of multinational groups post-CbC implementation as opposed to the ETR pre-implementation. No significant difference was found between the average consolidated ETR of multinational groups with at least one affiliate in a tax haven, as compared to those without. A comparison of the average foreign unconsolidated ETR found a significantly lower average foreign ETR for multinational groups than the consolidated overall ETR of multinational groups. In line with the study’s earlier result, namely a higher consolidated ETR for multinational groups with a filing obligation compared to their counterparts with no filing obligation, the foreign ETR of multinational groups with a CbC filing obligation was found to be significantly higher than the foreign ETR of those without a filing obligation. Similarly, the foreign ETR of multinational groups was significantly higher in the years post-CbC reporting implementation, as compared to the foreign ETR pre-implementation.Conclusion: Based on the study’s findings that reveal a general increase in the average consolidated ETR per specific indicators, a possible explanation for such findings may point to CbC reporting requirements. Journal: South African Journal of Accounting Research Pages: 45-56 Issue: 1 Volume: 36 Year: 2022 Month: 01 X-DOI: 10.1080/10291954.2020.1860483 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1860483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:1:p:45-56 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1855886_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: D. Coetsee Author-X-Name-First: D. Author-X-Name-Last: Coetsee Author-Name: A. Mohammadali-Haji Author-X-Name-First: A. Author-X-Name-Last: Mohammadali-Haji Author-Name: M. van Wyk Author-X-Name-First: M. Author-X-Name-Last: van Wyk Title: Revenue recognition practices in South Africa: An analysis of the decision usefulness of IFRS 15 disclosures Abstract: The paper analyses the first-time adoption of IFRS 15 and reports on the appropriateness, rigour and decision usefulness of revenue disclosure practices in South Africa. The decision usefulness is assessed by reviewing the nature, amount, timing and uncertainty of revenue recognition information. A disclosure checklist was used for the content analysis and interpretation of a selection of South African listed companies. In most instances, revenue disclosures appeared to be orderly, concise, coherent and appropriately cross-referenced, indicating that generally companies were able to deal appropriately with entity-specific information regarding the nature, amount and timing of revenue recognition. Specifically, the disaggregation of revenue, the accounting policies and the transitional requirements were applied appropriately. However, two main concerns were identified, which compromise the decision usefulness of revenue recognition. Firstly, misalignment between the IFRS 15 information in the annual financial statements and the interim financial statements was identified in the first year of the application of IFRS 15. The finding indicates that some entities need to start their process of adopting a new financial reporting standard earlier. Secondly, specific assumptions and judgments regarding revenue recognition, determining the transaction price and measuring obligations for returns, refunds and other similar obligations were not always disclosed. Insufficient disclosure specifically regarding the uncertainty of revenue recognition could compromise the decision usefulness of revenue information. The findings of this paper contribute to the understanding of the first-time adoption implications of new accounting standards, such as IFRS 15. Journal: South African Journal of Accounting Research Pages: 22-44 Issue: 1 Volume: 36 Year: 2022 Month: 01 X-DOI: 10.1080/10291954.2020.1855886 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1855886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:1:p:22-44 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1909940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Matthew Olubayo Omotoso Author-X-Name-First: Matthew Olubayo Author-X-Name-Last: Omotoso Author-Name: Daniël Petrus Schutte Author-X-Name-First: Daniël Petrus Author-X-Name-Last: Schutte Author-Name: Merwe Oberholzer Author-X-Name-First: Merwe Author-X-Name-Last: Oberholzer Title: The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa Abstract: The adoption and implementation of International Financial Reporting Standards (IFRS) are anticipated to enhance the quality and credibility of financial statement in terms of reliability, transparency and comparability. Consequently, it presupposes improving the functioning of the capital market and influence foreign investments to flow into adopting countries. This study examines the effect of the adoption of IFRS on foreign portfolio investment (FPI) in Africa. Annual FPI data from the Balance of Payments and International Investment Position from 1994 to 2015 were employed. The panel data regression considered fixed-effects and random-effects models. Besides, the system generalised method of moments estimator is employed for the robustness of the model and to address the problem of endogeneity. In correspondence with the decision-usefulness theory, our findings indicate that FPI is promoted in the African countries that apply IFRS-based financial statement. The adoption of IFRS is assumed to be an informational change that would eliminate information barriers facing the users of financial statements. Therefore, the development of IFRS is aimed at improving the usefulness of financial reporting by facilitating the comparability and reliability of financial information in African countries. This will influence foreign investors to shift their capital to such an economy, consequently increasing the inflow of FPI. Journal: South African Journal of Accounting Research Pages: 57-79 Issue: 1 Volume: 36 Year: 2022 Month: 01 X-DOI: 10.1080/10291954.2021.1909940 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1909940 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:1:p:57-79 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1917190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Major Correction Journal: South African Journal of Accounting Research Pages: 170-170 Issue: 2 Volume: 36 Year: 2022 Month: 05 X-DOI: 10.1080/10291954.2021.1917190 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1917190 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:2:p:170-170 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1918481_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shelly Herbert Author-X-Name-First: Shelly Author-X-Name-Last: Herbert Author-Name: Mark Graham Author-X-Name-First: Mark Author-X-Name-Last: Graham Title: Applying legitimacy theory to understand sustainability reporting behaviour within South African integrated reports Abstract: Sustainability disclosures are frequently included within integrated reports, in order to provide disclosures relating to the capitals identified in the International Framework (the Framework). South Africa has been at the forefront of integrated reporting, following the guidance of King III and subsequently the Framework. This study draws on data previously presented by the authors, and identifies the relationships and correlation between the application of principles from the Framework, such as materiality and conciseness, as well as the total number of sustainability disclosures and the industry classification, age and size of the companies, through the lens of legitimacy theory. The study uses data collected through interpretive content analysis of the integrated reports of South African companies in 2011 and 2015, as well as company metrics, which are analysed using Spearman’s rank correlation and a k-means cluster analysis. The results reveal that companies tend to consistently apply the principles from the Framework, and the size of the company was not consistently correlated. However, the age of the company was correlated to the materiality of disclosures provided. The findings are consistent with legitimacy theory and add to the legitimacy theory literature by identifying the sustainability reporting behaviour displayed by companies of various sizes, ages and industry classifications. Journal: South African Journal of Accounting Research Pages: 147-169 Issue: 2 Volume: 36 Year: 2022 Month: 05 X-DOI: 10.1080/10291954.2021.1918481 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1918481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:2:p:147-169 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1860484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wayne van Zijl Author-X-Name-First: Wayne Author-X-Name-Last: van Zijl Author-Name: Valencia Hewlett Author-X-Name-First: Valencia Author-X-Name-Last: Hewlett Title: An analysis of the extent and use of fair value by JSE Top 40 companies Abstract: Fair value’s advantages, disadvantages and ideology have been debated thoroughly by academics and practitioners for decades. The few implementation papers which do exist are primarily concerned with developed economies. This gap is despite the prior literature acknowledging the likely difficulties of fair value use by less developed markets and economies. This paper contributes to addressing this gap by providing an analysis of the extent and use of fair value by Johannesburg Stock Exchange (JSE) Top 40 companies for the period 2013–2017.This paper finds limited use of fair value by JSE Top 40 companies. On average, only 184 assets and liabilities make use of fair value each year and this has not changed significantly over time. Most fair value use is by the financial services industry (41%) and for financial instruments (80%). Critically, only 28% of all financial elements made use of Level 1 inputs, and only 15% were classified overall as Level 1 inputs. The findings suggest Level 1 inputs are not widely available for financial elements and are rarely available for non-financial assets. When fair values are used for non-financial assets, this is mainly for investment property, commodity-inventories and impairment tests.Because of the reliance on Level 2 and 3 inputs, the results suggest fair value is a costly measurement basis to implement in South Africa and frequently requires management judgement. The consequence is that many fair values are susceptible to bias and manipulation. Journal: South African Journal of Accounting Research Pages: 81-104 Issue: 2 Volume: 36 Year: 2022 Month: 05 X-DOI: 10.1080/10291954.2020.1860484 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1860484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:2:p:81-104 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1988204_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nana Adwoa Anokye Effah Author-X-Name-First: Nana Adwoa Author-X-Name-Last: Anokye Effah Author-Name: Agyeiwaa Owusu Nkwantabisa Author-X-Name-First: Agyeiwaa Owusu Author-X-Name-Last: Nkwantabisa Title: The influence of academic engagement on academic performance of university accounting students in Ghana Abstract: An essential component of every university’s desired outcome is producing successful students with advanced academic and cognitive learning skills. However, this goal might be compromised and, in some extreme cases, not attained due to circumstances encountered in the university education process. In an attempt to determine some of the factors that affect academic performance in the university amid the ever-increasing needs of students, this study ascertains the academic engagement levels of university accounting students in Ghana and the relationship between academic engagement (Vigour, Dedication and Absorption) and academic performance measured by students’ perceived academic performance and Grade Point Average (GPA). Utilising a quantitative research approach with questionnaires as the primary research instrument, data were collected from 215 university students and analysed using a hierarchical regression technique. The analyses showed that accounting students score high on Dedication rather than Vigour and Absorption in terms of academic engagement. Additionally, results indicated that older accounting students academically perform better than their younger counterparts. Furthermore, academic engagement was found to affect students’ academic performance but with much emphasis on students’ Dedication to studying accounting. The study’s findings in consonance with the student involvement theory assert that amid the claim that the accounting programme is challenging for most students, students’ performance can be improved. This is achievable if students intently develop the drive to study in addition to the efforts of educators to improve accounting education. Journal: South African Journal of Accounting Research Pages: 105-122 Issue: 2 Volume: 36 Year: 2022 Month: 05 X-DOI: 10.1080/10291954.2021.1988204 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1988204 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:2:p:105-122 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1935674_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Petro Gerber Author-X-Name-First: Petro Author-X-Name-Last: Gerber Author-Name: Cecileen Greeff Author-X-Name-First: Cecileen Author-X-Name-Last: Greeff Title: The taxation of gap cover policies for individual taxpayers in South Africa: a critical analysis Abstract: Gap cover policies cover the shortfall between medical scheme benefits and the rates the service providers charge and are therefore used by individuals in South Africa to supplement payments of medical expenditure not covered by private medical schemes. Little information is available about the tax consequences of gap cover. The objective of this study is to provide a critical analysis of the issues in the normal tax treatment of gap cover for individual taxpayers in South Africa, and to make recommendations to the South African Revenue Service to mitigate these issues or practical problems. A non-empirical study based on existing literature was performed which includes a critical evaluation and analysis of gap cover policies and existing tax legislation. It is found that gap cover refunds should be subtracted from the qualifying medical expenditure used in the medical tax credit under section 6B of the Income Tax Act No. 58 of 1962. Various factors may lead to incorrect information being reported on the income tax return, this may lead to a section 6B tax credit to which the taxpayer is not entitled, or which is in excess of what the taxpayer is entitled to. It is found that gap cover contributions are not deductible and that not allowing gap cover contributions as a deduction or as a tax credit detracts from the principles of taxation. Journal: South African Journal of Accounting Research Pages: 123-146 Issue: 2 Volume: 36 Year: 2022 Month: 05 X-DOI: 10.1080/10291954.2021.1935674 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1935674 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:2:p:123-146 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1846860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kgonthe Sebashe Author-X-Name-First: Kgonthe Author-X-Name-Last: Sebashe Author-Name: Henriette Lynette Erasmus Author-X-Name-First: Henriette Lynette Author-X-Name-Last: Erasmus Author-Name: Magdalena Maria Erasmus Author-X-Name-First: Magdalena Maria Author-X-Name-Last: Erasmus Title: A case study review and reasonability assessment of the foreign employment income tax exemption threshold in section 10(1)(o)(ii) of the Income Tax Act Abstract: This research paper, by means of a case study, evaluated whether the foreign employment income tax exemption threshold in section 10(1)(o)(ii) of the Income Tax Act achieved its objectives: first, limiting the impact of the amendment to the exemption in respect of South African tax residents earning low or moderate levels of remuneration in either the United Arab Emirates (low-income tax rate jurisdiction) or the United Kingdom (high-income tax rate jurisdiction); and, second, spared tax residents earning remuneration in the United Kingdom of making additional ‘top-up’ tax payments to the South African Revenue Service. The case study assessed the tax position of a South African tax resident earning low, moderate or high levels of foreign remuneration in either the United Arab Emirates or United Kingdom, based on three mutually exclusive assumptions: first, had the full exemption continued to apply (as was effective on 29 February 2020); second, had the exemption threshold applied (effective from 1 March 2020, in terms of the 2020 Budget Review; not yet legislated at the time of writing the research paper); and, third, had the exemption, in full, been repealed (as proposed in terms of the Draft Taxation Laws Amendment Bill of 2017). The reasonability of the current threshold value was assessed by comparing it to the minimum threshold value required to achieve a break-even tax position in the Republic. Journal: South African Journal of Accounting Research Pages: 250-271 Issue: 3 Volume: 36 Year: 2022 Month: 09 X-DOI: 10.1080/10291954.2020.1846860 File-URL: http://hdl.handle.net/10.1080/10291954.2020.1846860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:3:p:250-271 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1938882_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Marilee van Zyl Author-X-Name-First: Marilee Author-X-Name-Last: van Zyl Author-Name: Nadia Mans-Kemp Author-X-Name-First: Nadia Author-X-Name-Last: Mans-Kemp Title: A multi-stakeholder view on director remuneration guidance in South Africa Abstract: Purpose: Given South Africa’s well-developed governance framework, considerable wage inequality and sizeable executive packages, this study was conducted to reflect on the aptness and application of the King IV director remuneration guidelines.Design: The views of 23 representatives of institutional investors, remuneration committee members and leading executives of financial services companies were gauged on the King IV remuneration recommendations by conducting semi-structured interviews. The primary data were analysed by conducting thematic analysis.Findings: The participants commended the heightened focus on pay-related transparency and reporting quality evident in King IV, in particular the three-part remuneration report and single pay figure disclosure. Participants urged remuneration committees to link executive pay to the six capitals.Practical implications: Government and the Institute of Directors in South Africa should account for the considerable regulatory burden that companies are experiencing when amending remuneration-related regulation in future. More guidance is required to link sustainability considerations to executive emolument. A corporate culture which promotes fair remuneration would benefit multiple stakeholders. Focus should be placed on equal pay for work of equal value.Value: The views of powerful and informed stakeholder representatives were gauged on responsible and transparent remuneration practices in an emerging market with severe pay inequality. Journal: South African Journal of Accounting Research Pages: 195-212 Issue: 3 Volume: 36 Year: 2022 Month: 09 X-DOI: 10.1080/10291954.2021.1938882 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1938882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:3:p:195-212 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_1970450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ekaete Efretuei Author-X-Name-First: Ekaete Author-X-Name-Last: Efretuei Author-Name: Abel Usoro Author-X-Name-First: Abel Author-X-Name-Last: Usoro Author-Name: Christina Koutra Author-X-Name-First: Christina Author-X-Name-Last: Koutra Title: Complex information and accounting standards: Evidence from UK narrative reporting Abstract: The application of International Financial Reporting Standards (IFRS) has been introduced in many countries to enhance efficiencies in financial markets and improve communication in financial reporting. However, extant studies have suggested that the introduction of IFRS has increased narrative complexity, owing to the demand for more reporting. Considering that accounting complexity can be either informative (enhancing understanding) or non-informative, thereby causing obfuscation, this study performs an empirical analysis to highlight which of the two types of complexities may be affected by IFRS application. Using the setting of IFRS adoption in the UK and a word list-adjusted component of the fog index, this study decomposes complexity into two components: information (common complexity) and obfuscation (uncommon complexity). The results reveal that IFRS adoption has increased the common complexity of accounting narratives (information) but does not necessarily increase obfuscation. The study’s contribution is twofold: methodological through the decomposition of complexity using the term weighting concept and policy-related by identifying areas of increased narrative comparability in IFRS reports. Moreover, the study’s application of complexity decomposition to IFRS is novel. Future studies may apply this by using the identified information and obfuscation components to investigate the economic consequences of IFRS-associated complexity. Journal: South African Journal of Accounting Research Pages: 171-194 Issue: 3 Volume: 36 Year: 2022 Month: 09 X-DOI: 10.1080/10291954.2021.1970450 File-URL: http://hdl.handle.net/10.1080/10291954.2021.1970450 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:3:p:171-194 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2000727_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jabile Brenda Pooe Author-X-Name-First: Jabile Brenda Author-X-Name-Last: Pooe Author-Name: Karin Barac Author-X-Name-First: Karin Author-X-Name-Last: Barac Author-Name: Kato Plant Author-X-Name-First: Kato Author-X-Name-Last: Plant Author-Name: Blanche Steyn Author-X-Name-First: Blanche Author-X-Name-Last: Steyn Title: Signalling of internal audit effectiveness Abstract: The internal audit function is increasingly recognised as an important internal governance mechanism and consequently factors that contribute to its effectiveness are now an area of great interest to researchers and practitioners. This study draws on signalling theory to fill a gap in the internal audit effectiveness (IAE) literature by investigating which IAE signals are sent by large South African companies in their company reports. Using a self-developed IAE signalling frame, a content analysis was performed on the integrated reports and other annual reports of the top 100 listed companies in South Africa over a five-year period. Thereafter a multiple correspondence analysis was used to extract IAE signals. The results revealed that IAE disclosure patterns of South African listed companies follow the normative dictates of the King Code and the Companies Act. The study also discovered a low average IAE disclosure rate linked to non-mandatory disclosure requirements. Disclosing more detail on IAE represents a missed opportunity to signal superiority through voluntary communication of the IAE signals especially on internal aspects such as management support for internal audit recommendations and the continuous professional development of internal auditors. Journal: South African Journal of Accounting Research Pages: 213-249 Issue: 3 Volume: 36 Year: 2022 Month: 09 X-DOI: 10.1080/10291954.2021.2000727 File-URL: http://hdl.handle.net/10.1080/10291954.2021.2000727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:36:y:2022:i:3:p:213-249 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2069388_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Danielle van Wyk Author-X-Name-First: Danielle Author-X-Name-Last: van Wyk Author-Name: Andrea van der Merwe Author-X-Name-First: Andrea Author-X-Name-Last: van der Merwe Title: An exploratory study on value-added tax consequences of a residential property lottery in South Africa Abstract: To dispose of a residential property in terms of a lottery transaction is a change in the business manner how residential properties are usually being disposed of, namely either through an estate agent or a private sale. A number of these transactions have occurred in South Africa in the last six years. This article considers a scenario where the main parties who participate in the lottery transaction are: the seller of the property, the winner of the property (multiple persons can purchase a lottery ticket, but only one person wins the property) and the attorney who oversees the lottery and is a non-resident of South Africa for tax purposes. Since a lottery transaction is seen as a different way of how residential properties are normally being sold, the main objective of this article is to explore the possible value-added tax (VAT) consequences for the different parties, depending on whether the parties are registered for VAT in South Africa or not. To meet this objective, a doctrinal research approach was followed by analysing South African and international literature to determine the recommended VAT treatment of these property lottery transactions, as no clear guidance can be found on this. It is suggested that the South African Revenue Service should consider issuing clear guidelines in respect of the VAT consequences of property lottery transactions. Journal: South African Journal of Accounting Research Pages: 19-34 Issue: 1 Volume: 37 Year: 2023 Month: 01 X-DOI: 10.1080/10291954.2022.2069388 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2069388 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:1:p:19-34 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2128556_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Philna Coetzee Author-X-Name-First: Philna Author-X-Name-Last: Coetzee Author-Name: Lourens Erasmus Author-X-Name-First: Lourens Author-X-Name-Last: Erasmus Author-Name: Mangakane Pududu Author-X-Name-First: Mangakane Author-X-Name-Last: Pududu Author-Name: Shan Malan Author-X-Name-First: Shan Author-X-Name-Last: Malan Author-Name: Audrey Legodi Author-X-Name-First: Audrey Author-X-Name-Last: Legodi Title: The power drivers of public sector audit committee effectiveness Abstract: Audit committees are often implicated as accomplices in governance failures, or slow to react to findings. The power drivers of public sector audit committee effectiveness in developing countries is an under-researched area. With the progress of developing countries threatened by malfeasance, research on public sector audit committee organisational power, contributes to the conversation on power drivers of public sector audit committee effectiveness in developing countries. The paper identified power drivers, through exploratory induction, that should support South African public sector audit committee effectiveness. Focus group discussions were analysed applying Interactive Qualitative Analysis methodology. The drivers are linked to Kalbers and Fogarty’s study on the power typology of organisational power theory, which posits power as an antecedent to effectiveness. The study concludes that three central themes provide power to the South African public sector audit committees, namely political climate; individual and collective audit committee competence; and the independence of the audit committee. The paper also modestly extends the organisational power theory in respect of the elements of power. Journal: South African Journal of Accounting Research Pages: 62-84 Issue: 1 Volume: 37 Year: 2023 Month: 01 X-DOI: 10.1080/10291954.2022.2128556 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2128556 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:1:p:62-84 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2101328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wendy Terblanche Author-X-Name-First: Wendy Author-X-Name-Last: Terblanche Author-Name: Ilse Lubbe Author-X-Name-First: Ilse Author-X-Name-Last: Lubbe Author-Name: Elmarie Papageorgiou Author-X-Name-First: Elmarie Author-X-Name-Last: Papageorgiou Author-Name: Nico van der Merwe Author-X-Name-First: Nico Author-X-Name-Last: van der Merwe Title: Acceptance of e-learning applications by accounting students in an online learning environment at residential universities Abstract: Technology acceptance models have been used in the higher education context to understand students’ acceptance of various learning technologies. Not only was the use of e-learning technologies heightened during the COVID-19 pandemic, but the shift to predominantly online teaching and learning was abrupt. It has become clear that acceptance of e-learning technology will be crucial for higher education in a post-COVID-19 world. Thus, the purpose of this study was to determine the acceptance of e-learning applications by accounting students at residential universities in South Africa.The Unified Theory of Acceptance and Use of Technology (UTAUT2) was adapted for this study to examine the relevance of its constructs in understanding students’ intent to use e-learning applications. Accounting students registered at four South African universities completed an electronic questionnaire (n = 1 864). Structural Equation Modelling using the Partial Least Squares method was used to test the hypothesised relationships.The findings indicate that performance expectancy, social influence, facilitating conditions, and habit have a significant relationship with behavioural intention to use e-learning applications. However, gender, academic performance, and level of study do not have a significant moderating effect on these relationships.The study reported in this paper contributes to technology acceptance research by testing the UTAUT2 model in a cross-institutional context with a larger sample size than used in similar studies. Furthermore, it has practical value for higher education policymakers, institutions, and lecturers in their attempts to adapt to blended and online learning models. Journal: South African Journal of Accounting Research Pages: 35-61 Issue: 1 Volume: 37 Year: 2023 Month: 01 X-DOI: 10.1080/10291954.2022.2101328 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2101328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:1:p:35-61 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2000726_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kyle Kildaire Author-X-Name-First: Kyle Author-X-Name-Last: Kildaire Author-Name: Avani Sebastian Author-X-Name-First: Avani Author-X-Name-Last: Sebastian Author-Name: Warren Maroun Author-X-Name-First: Warren Author-X-Name-Last: Maroun Title: Indicators of firm growth: Evidence from the JSE Abstract: The estimation of firm growth is increasingly relevant to providers of capital in periods of economic uncertainty. The current study employs univariate and multivariate analyses to assess the impact of real GDP and the dividend payout ratio on earnings growth of JSE-listed firms. The findings reveal that there is no relationship between these hypothesised predictors of earnings growth, despite contrasting results of previous studies. Through the inclusion of real GDP in models that are established in the research, the study contributes to the literature of macroeconomic variables as lead indicators of firms’ earnings growth potential. This research also extends prior research on the impact of dividend payout ratio on future earnings growth. Journal: South African Journal of Accounting Research Pages: 1-18 Issue: 1 Volume: 37 Year: 2023 Month: 01 X-DOI: 10.1080/10291954.2021.2000726 File-URL: http://hdl.handle.net/10.1080/10291954.2021.2000726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2148925_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: E. A. J. Terblanche Author-X-Name-First: E. A. J. Author-X-Name-Last: Terblanche Author-Name: C. C. Shuttleworth Author-X-Name-First: C. C. Author-X-Name-Last: Shuttleworth Author-Name: A. A. van Rooyen Author-X-Name-First: A. A. Author-X-Name-Last: van Rooyen Author-Name: R. N. Masela Author-X-Name-First: R. N. Author-X-Name-Last: Masela Title: Critical thinking: Stakeholder expectations and challenges for Accountancy educators Abstract: Developing future accountants who are critical thinkers, able to adapt in a volatile, uncertain, complex, and ambiguous (VUCA) world, remains one of the biggest challenges facing accounting educators. Competency frameworks of professional accounting bodies do provide some guidance in terms of the competencies and skills graduates should possess when entering the profession, but lack the inclusion of a clear, consensus-based definition of critical thinking and its related skills. The present study sought to explore the extent to which critical thinking and related concepts are present in and align across the competency frameworks of four professional accounting bodies. Employing a content analysis, the results indicated no agreed-upon definition for “critical thinking” or related terms. The term “critical thinking” only appeared in one framework with “decision-making”, “judgement” and “problem solving” serving as surrogate terms across the frameworks. Variations of “analyse”, “explain” and “evaluate”, that are considered to be core critical thinking skills, were extensively used in the frameworks, albeit not clearly defined. Professional bodies are crucial when creating a more mature demand for critical thinking acumen in graduates and workplace professionals. The researchers therefor advocate better agreement among accounting educators and professional bodies about the definition of critical thinking. Journal: South African Journal of Accounting Research Pages: 225-244 Issue: 3 Volume: 37 Year: 2023 Month: 09 X-DOI: 10.1080/10291954.2022.2148925 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2148925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:3:p:225-244 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2172833_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Estelle Landsberg Author-X-Name-First: Estelle Author-X-Name-Last: Landsberg Author-Name: Liandi van den Berg Author-X-Name-First: Liandi Author-X-Name-Last: van den Berg Title: 4th Industrial Revolution skills in the current South African accountancy curricula: A systematic literature review Abstract: The business environment has seen rapid changes due to the Fourth Industrial Revolution (4IR) and the influence of exponential technological advancements. The enhancement of technology-based work environments has changed the skill set needed by graduates entering the workforce. In this regard, higher education institutions have shown signs of struggling to adapt curricula to prepare graduates with the skills needed by the fast-changing workforce environment. The South African Institute of Chartered Accountants (SAICA) developed a framework with competencies aimed to address the needed graduate skills, and for institutions to use as guiding documents in the amendment of their curricula. In this regard, the purpose of this study was to evaluate the top universities in South Africa’s accountancy module documents to determine whether the curricula are addressing the 4IR workforce needs. The SAICA-proposed competency framework (2025CF) was used as a conceptual framework for the evaluation of the university’s curricula documents, and findings indicate that universities still need to make substantial changes in order to include newly-added pervasive skills as prescribed by 2025CF. Findings from the systematic literature review indicate that universities adequately address business acumen skills; however, the categories of digital-, relational and decision-making acumen were insufficiently evident within the current curricula of the top five South African universities. The apparent lack of specific skills development for graduates needs urgent attention considering the technological changes brought on by the 4IR within the accountancy domain. Journal: South African Journal of Accounting Research Pages: 177-201 Issue: 3 Volume: 37 Year: 2023 Month: 09 X-DOI: 10.1080/10291954.2023.2172833 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2172833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:3:p:177-201 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2196182_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Adele Oosthuizen Author-X-Name-First: Adele Author-X-Name-Last: Oosthuizen Title: Service quality and the services sourced from small accounting practitioners Abstract: Small and Medium Enterprises (SMEs) often lack the necessary financial skills to safeguard business success. It is therefore expected that they would benefit from the advisory services offered by external accountants. Research, however, indicates a reluctance amongst Small Business Owners (SBOs) to source advice from accountants. It has been suggested that factors relating to service quality may contribute to this reluctance. This paper aims to report on how the levels of service quality offered by Small Accounting Practitioners (SAPs) impact the frequency with which SMEs source different services. Data were collected from 422 South African SBOs using self-administered questionnaires. Hypotheses were tested through Structural Equation Modelling (SEM). An exploratory factor analysis was performed on the adapted Service Quality Model (SERVQUAL) scale, and two dimensions for measuring service quality in this context were found: technical and functional aspects. Results from the structural equation modelling indicate that SAPs’ level of service quality has no significant impact on the frequency with which SMEs source traditional accounting services. However, a significant positive relationship was found between both service quality dimensions identified and the rate at which SMEs source advisory services. The findings suggest that SAPs could establish a relationship of trust with their existing clients by providing high-quality services. Quality service, in turn, would result in clients sourcing advisory services more frequently, benefiting both the SME and the accounting practitioner. Journal: South African Journal of Accounting Research Pages: 202-224 Issue: 3 Volume: 37 Year: 2023 Month: 09 X-DOI: 10.1080/10291954.2023.2196182 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2196182 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:3:p:202-224 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2143226_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nurul Aisyah Rachmawati Author-X-Name-First: Nurul Aisyah Author-X-Name-Last: Rachmawati Author-Name: Sidharta Utama Author-X-Name-First: Sidharta Author-X-Name-Last: Utama Author-Name: Dwi Martani Author-X-Name-First: Dwi Author-X-Name-Last: Martani Author-Name: Ratna Wardhani Author-X-Name-First: Ratna Author-X-Name-Last: Wardhani Title: Complementary level of financial and tax aggressiveness and the impact on cost of debt: A cross-country study Abstract: Managers can take advantage of the flexibility of accounting choices to act opportunistically through financial aggressiveness and/or tax aggressiveness. The higher the complementary level of financial and tax aggressiveness, the higher the risk arising from the levels of error or fraudulent reporting carried out by such firms (fraud risk). This study aims to examine the impacts of the complementary level of financial and tax aggressiveness on the cost of debt. We estimate these relationships with a two-stage estimator method using 7 200 firm-year samples from East Asia and Europe for the period 2014 to 2016. In the first stage, a binary logistics model is used to examine the factors that influence the complementary level of financial and tax aggressiveness. Then in the second stage, we use a regression model to examine the effect of the complementary level of financial and tax aggressiveness on the cost of debt. We find that the complementary level of financial and tax aggressiveness has a positive and significant effect on the cost of debt, meaning that the higher the complementary level of financial and tax aggressiveness, the higher the cost of debt faced by firms. Creditors perceive the practice of financial and tax aggressiveness as a significant firm risk, thus tending to increase the cost of the debt they provide. Journal: South African Journal of Accounting Research Pages: 161-176 Issue: 3 Volume: 37 Year: 2023 Month: 09 X-DOI: 10.1080/10291954.2022.2143226 File-URL: http://hdl.handle.net/10.1080/10291954.2022.2143226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:37:y:2023:i:3:p:161-176 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2230701_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Elizabeth Fick Author-X-Name-First: Elizabeth Author-X-Name-Last: Fick Author-Name: Maryke Wiesener Author-X-Name-First: Maryke Author-X-Name-Last: Wiesener Title: Cessation of South African residency: A critical analysis of juridical double taxation on United Kingdom immovable property held by natural persons Abstract: When a natural person ceases to be resident, there is a deemed disposal of worldwide assets, and a capital gain must be calculated. Taxation levied because of a change in residence is referred to as an exit tax. In this context, juridical double taxation could arise if the assets are taxed in both the previous and the new state of residence.South Africa has a convention for the avoidance of double taxation and the prevention of fiscal evasion with the United Kingdom (SA‒UK DTA). Article 21 of the SA‒UK DTA contains the Elimination of Double Taxation provisions. South Africa provides relief from juridical double taxation in terms of section 6quat of the Income Tax Act. However, these measures may not always provide relief for exit taxes.A qualitative research approach was followed, in the form of a literature review. Secondary data were collected and analysed to determine if Article 21 and/or section 6quat provide for the elimination of this juridical double taxation. Where neither Article 21 nor section 6quat provide relief, the research aimed to establish whether any other procedure could provide relief.The findings suggest that Article 21 does not provide for the elimination of this juridical double taxation. Furthermore, section 6quat would only in certain instances provide relief. Should neither Article 21 nor section 6quat provide relief, the mutual agreement procedure (MAP) could be considered for resolving this juridical double taxation. However, while the MAP is satisfactory in theory, it has a number of practical limitations. Journal: South African Journal of Accounting Research Pages: 50-64 Issue: 1 Volume: 38 Year: 2024 Month: 01 X-DOI: 10.1080/10291954.2023.2230701 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2230701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:1:p:50-64 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2197319_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Karen Stark Author-X-Name-First: Karen Author-X-Name-Last: Stark Author-Name: Sharon Smulders Author-X-Name-First: Sharon Author-X-Name-Last: Smulders Author-Name: Elza Odendaal Author-X-Name-First: Elza Author-X-Name-Last: Odendaal Title: Quantifying the tax compliance costs of individual taxpayers in South Africa Abstract: The aim of the study was to quantify the total tax compliance costs (TCC) of individual taxpayers in South Africa for the 2017 and 2018 years of assessment as no studies were found that comprehensively quantified these costs in South Africa. A quantitative research design was followed using an online questionnaire to collect the data. Different sampling and data collection methods were used: for 2017 snowball sampling was employed providing 752 useable responses, whereas for 2018, a random sample was made possible with the assistance of the South African Revenue Service (SARS) resulting in 10 260 useable responses. The TCC for each year was calculated in three steps. First, the number of hours spent by the respondents on each tax-related activity was ascertained. Second, this time was then multiplied by an hourly rate using various methods and lastly the time value was added to the respondents’ out-of-pocket costs (arising from payments to tax practitioners for assistance and from sundry expenditure). The average total TCC for 2017 was estimated at between R4 604 and R12 661 while for 2018 it was between R2 544 and R3 742. The TCC calculations provide a baseline that will assist in measuring the impact of subsequent reforms, such as the 2021 auto-assessments introduced by SARS, on TCC. Journal: South African Journal of Accounting Research Pages: 65-89 Issue: 1 Volume: 38 Year: 2024 Month: 01 X-DOI: 10.1080/10291954.2023.2197319 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2197319 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:1:p:65-89 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2250628_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: David Colin Greenham Author-X-Name-First: David Colin Author-X-Name-Last: Greenham Author-Name: Rajesh Ramlall Author-X-Name-First: Rajesh Author-X-Name-Last: Ramlall Author-Name: Lesley June Stainbank Author-X-Name-First: Lesley June Author-X-Name-Last: Stainbank Title: Tax education and taxpayer enculturation: Initiatives for South Africa Abstract: The South African Revenue Service acknowledges that it faces various risks, such as revenue collection uncertainty, unfavourable public perceptions and low compliance. Despite South Africa’s sophisticated taxation system, improvements to taxpayer education may provide the most comprehensive opportunity to allay these risks. This study examined taxpayer education strategies utilised in foreign countries to identify opportunities for initiatives that could be used to foster compliance-enhancing behaviour. In addition, the South African taxation infrastructure was assessed to determine its ability to integrate foreign compliance strategies. Three taxpayer education themes of enculturation, education and awareness were identified.Using a qualitative research methodology, 15 interviews were conducted with respondents who could provide knowledgeable opinions on the issues raised. The respondents confirmed the importance of these themes and the need to introduce the three tax education initiatives.This study recommends that taxpaying values be enculturated and normalised among future taxpayers before they leave school, that taxpaying aptitude, preparedness and confidence be developed by revising the financial, maths and tax literacy elements introduced throughout the school curriculum, as well as piloting an informative Taxpayers’ Week during Tax Season.The study’s contribution is unique in differentiating taxpaying skill development from taxpayer enculturation within school education. Practical direction is given to South African authorities concerning which tax education initiatives from foreign countries could be adapted and adopted. This study proposes novel initiatives and provides suggestions to optimise the existing taxpayer education and awareness efforts. Lastly, it contributes to the limited tax education and tax compliance literature. Journal: South African Journal of Accounting Research Pages: 1-26 Issue: 1 Volume: 38 Year: 2024 Month: 01 X-DOI: 10.1080/10291954.2023.2250628 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2250628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:1:p:1-26 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2246293_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Monica Teixeira De Freitas Author-X-Name-First: Monica Teixeira Author-X-Name-Last: De Freitas Author-Name: Wayne van Zijl Author-X-Name-First: Wayne Author-X-Name-Last: van Zijl Author-Name: Asheer Jaywant Ram Author-X-Name-First: Asheer Jaywant Author-X-Name-Last: Ram Author-Name: Warren Maroun Author-X-Name-First: Warren Author-X-Name-Last: Maroun Title: Stakeholder and jurisdictional influence over IFRS 10's development Abstract: The International Financial Reporting Standards are voluntarily adopted by 167 countries, including countries in Africa, Australasia, Europe and South America. To maintain its legitimacy, the International Accounting Standards Board (IASB) must not be viewed as being unduly influenced by one group or jurisdiction. If the IASB’s procedural legitimacy is compromised, it threatens their cognitive legitimacy and the global adoption of IFRS.Currently, most papers investigating the legitimacy of the IASB’s due process employ simplified assessment tools. This paper investigates the relative influence of stakeholders and jurisdictions over the IASB’s standard setting, using the method designed by Bamber and McMeeking (2016). This method does not treat all requests for changes equally, strengthening the validity and quality of the findings. In addition, this paper answers the call from Bamber and McMeeking (2016) to corroborate or refute their findings that not all stakeholders exerted equal influence and that comments from the UK are less influential than those from the US.Using a content analysis, this paper investigates the relative influence of jurisdictions and stakeholders on IFRS 10’s development. The paper finds that, although no single stakeholder has a much greater influence over the IASB than others, there is some evidence of bias in a jurisdictional space in favour of the US and the UK with regard to the development of IFRS 10. Journal: South African Journal of Accounting Research Pages: 27-49 Issue: 1 Volume: 38 Year: 2024 Month: 01 X-DOI: 10.1080/10291954.2023.2246293 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2246293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:1:p:27-49 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2306701_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Vongani V. Masongweni Author-X-Name-First: Vongani V. Author-X-Name-Last: Masongweni Author-Name: Beatrice D. Simo-Kengne Author-X-Name-First: Beatrice D. Author-X-Name-Last: Simo-Kengne Title: The impact of sustainable investment on firm performance in South Africa Abstract: Purpose: This study investigates the influence of environmental, social, and governance (ESG) scores on the financial performance of firms in South Africa across industries.Motivation: In the context of the growing importance of sustainability reporting, understanding the link between ESG and firm performance is critical for informed and sustainable corporate strategies.Design/Methodology/Approach: The study employs panel data regression techniques on secondary data from 120 Johannesburg Stock Exchange-listed firms between 2015 and 2020.Main Findings: Overall, the composite ESG scores do not significantly affect the financial performance of South African companies. However, scores from social and governance pillars show a positive association with firm performance, while environmental scores have a limited effect.Practical Implications/Managerial Impact: These findings suggest that not all ESG activities are equally relevant for firm profitability. Corporate managers should prioritise industry-relevant ESG pillars to enhance firm profitability.Novelty/Contribution: The study expands empirical evidence in an emerging market context, analysing the impact of disaggregated ESG scores and providing comparative industry-specific analysis. This contributes to a nuanced understanding of the ESG-performance nexus. Journal: South African Journal of Accounting Research Pages: 146-173 Issue: 2 Volume: 38 Year: 2024 Month: 05 X-DOI: 10.1080/10291954.2024.2306701 File-URL: http://hdl.handle.net/10.1080/10291954.2024.2306701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:2:p:146-173 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2294536_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Mariska McKenzie Author-X-Name-First: Mariska Author-X-Name-Last: McKenzie Author-Name: Ben Marx Author-X-Name-First: Ben Author-X-Name-Last: Marx Title: Turnaround for municipal distress resolution: An audit outcomes approach Abstract: Purpose: This research study aims to identify effective turnaround strategies that can resolve municipal financial distress by improving the audit outcomes of dysfunctional municipalities.Motivation: As many as 64% of South African municipalities were classified as financially distressed by the National Treasury on 7 December 2022, indicating that most South African municipalities require urgent intervention. There is a knowledge gap in the existing literature on how to resolve municipal financial distress practically.Design / Methodology / Approach: An exploratory sequential mixed methods design was utilised to identify effective turnaround strategies. An interpretative content analysis of Audit Action Plans was conducted, followed by a census of the provincial treasuries, the National Treasury and the Department of Cooperative Governance and Traditional Affairs (COGTA) in South Africa.Main findings: The main research findings indicate that turnaround strategies associated with effective and adequate internal controls, revenue management, ethics and fraud prevention can improve municipal financial viability.Practical implications/Managerial impact: The improved financial viability of municipalities will empower dysfunctional municipalities to resolve their own financial distress by implementing similar effective and practical turnaround strategies, thereby improving the quality of essential service delivery to local communities.Novelty/Contribution: Improved essential service delivery directly contributes towards local economic development and job creation. Journal: South African Journal of Accounting Research Pages: 174-208 Issue: 2 Volume: 38 Year: 2024 Month: 05 X-DOI: 10.1080/10291954.2023.2294536 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2294536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:2:p:174-208 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2279751_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ahmed S. Abdelwahed Author-X-Name-First: Ahmed S. Author-X-Name-Last: Abdelwahed Author-Name: Ahmad A. Abu-Musa Author-X-Name-First: Ahmad A. Author-X-Name-Last: Abu-Musa Author-Name: Hosam Moubarak Author-X-Name-First: Hosam Author-X-Name-Last: Moubarak Author-Name: Hebatallah A. Badawy Author-X-Name-First: Hebatallah A. Author-X-Name-Last: Badawy Title: The use of big data and analytics in external auditing: Does audit firm size matter? Evidence from a developing country Abstract: Purpose: The aims of this research are to investigate the reasons for adopting big data (BD) and big data analytics (BDA), determine their extent of usage, and identify potential obstacles to their adoption in a developing country, Egypt.Motivation: Prior literature criticized the audit profession for the slow adoption of BDA, and little is known about the adoption of BD and BDA in developing countries. The reluctance to incorporate BD and BDA into auditing can be attributed to their potential obstacles. In addition, prior studies focused on the Big-4 audit firms in developed countries with little known about adopting BD and BDA in local audit firms and developing countries.Design/methodology/approach:To achieve the objectives of this study, 16 audit practitioners with various positions, specializations, and experience levels were interviewed. The 16 participants belong to audit firms of different sizes: international audit firms, local audit firms, and a governmental auditing agency. Thematic analysis was employed through using the MAXQDA software package to analyze the data.Main findings: The findings revealed that the reasons for using BD and BDA go beyond improving audit efficiency and effectiveness and satisfying clients. All audit firms collect and analyze large volumes of traditional accounting data. However, the Big-4 firms manage and analyze non-financial data and new data items as complementary audit evidence. Also, it was found that the type of audit firm affects the use of these technologies, with international firms being superior to other firms. The Accountability State Authority lags behind other audit firms in adopting BD and BDA. Furthermore, it was found that some obstacles to adopting BD and BDA arise due to the specific characteristics of the Egyptian context, while others are universal.Practical implications/Managerial impact: Determining the reasons for and obstacles to adopting BD BDA is useful for audit firms and regulators to remove these obstacles and encourage using such new audit technologies. The findings might help developers of BDA software packages to enhance their packages to meet auditor requirements. Moreover, academic scholars can benefit from the findings of this study by gaining an understanding of the main differences between developed and developing countries in relation to adopting BD and BDA.Novelty/Contribution: This study was conducted in Egypt, a developing country with a an underdeveloped audit environment. Therefore, this study enriches the relevant literature by providing information about BD and BDA in an unexplored developing environment. Besides, it delves deeper into the reasons and obstacles to using BD and BDA in external financial auditing in a developing country. Also, it adds to the literature by identifying the most common BDA software packages and techniques that auditors use in a developing country. Moreover, it considers audit practitioners’ viewpoints on audit firms of various sizes. Journal: South African Journal of Accounting Research Pages: 113-145 Issue: 2 Volume: 38 Year: 2024 Month: 05 X-DOI: 10.1080/10291954.2023.2279751 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2279751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:2:p:113-145 Template-Type: ReDIF-Article 1.0 # input file: RSAR_A_2277560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: E. Louw Author-X-Name-First: E. Author-X-Name-Last: Louw Author-Name: J. H. Hall Author-X-Name-First: J. H. Author-X-Name-Last: Hall Author-Name: L. M. Brümmer Author-X-Name-First: L. M. Author-X-Name-Last: Brümmer Title: Compliance with goodwill impairment disclosure and reasons provided by management: Evidence from South Africa Abstract: Purpose: The aim of this article is to investigate compliance with the IFRS disclosure requirements regarding goodwill impairment testing in the South African setting, using JSE-listed firms as a sample. The article considers the explanatory strategies used by management to provide reasons for goodwill impairment.Motivation: Goodwill and its impairment are continually debated in accounting because of the nature of this intangible asset, and changes in the accounting standards regarding disclosure of goodwill and goodwill impairment.Design/Methodology/Approach: Panel least squares regressions and a cluster analysis were used to analyse JSE-listed firms for the period from 2006 to 2017.Main findings: The findings show that firms with material goodwill balances and an independent audit committee are associated with higher compliance with goodwill impairment disclosure. Firms that provided an excuse for impairing goodwill without taking responsibility for that impairment tended to have higher compliance regarding goodwill impairment disclosure than firms that did not provide any reason for goodwill impairment at all.Practical implications/Managerial impact: Managers exhibiting compliance with goodwill impairment disclosure standards are inclined to furnish more comprehensive elucidation regarding the underlying reasons for the initiation of goodwill impairment. Investors, in turn, might find it useful to study and question the reasons provided as part of the goodwill impairment disclosure recognizing its potential significance in their decision-making processes.Novelty/Contribution: The findings of the study provide evidence that aids understanding of goodwill impairments and the compliance with its disclosures, thereby enhancing knowledge of the effectiveness of the implementation of IFRS 3. Journal: South African Journal of Accounting Research Pages: 91-112 Issue: 2 Volume: 38 Year: 2024 Month: 05 X-DOI: 10.1080/10291954.2023.2277560 File-URL: http://hdl.handle.net/10.1080/10291954.2023.2277560 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rsarxx:v:38:y:2024:i:2:p:91-112