scholarly journals Financial accounting and reporting in developing countries: A South African perspective

1999 ◽  
Vol 2 (2) ◽  
pp. 222-239 ◽  
Author(s):  
Johan Oberholster
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
South African ◽  
Developing Country ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting System ◽  
Social Fabric ◽  
African Perspective

South Africa is currently going through major changes in political, social and other arenas. It is therefore appropriate to consider the effect of these developments on financial reporting in a changing environment. This paper explores the origins of the current South African accounting system, given its status as a developing country, and endeavours to show that financial reporting needs to be amended to reflect the changing face of the South Africa's social fabric, its status as a developing country, as well as the emergence of new users of financial statements. Certain recommendations are made to address these issues.

scholarly journals Accounting practitioners’ views on the proposed “Micro GAAP”: A South African perspective

2011 ◽  
Vol 4 (2) ◽  
pp. 257-274 ◽  
Author(s):  
Hentie A. Van Wyk ◽  
Cobus Rossouw
Keyword(s):  
South Africa ◽  
South African ◽  
Financial Reporting ◽  
Financial Statements ◽  
General Purpose ◽  
The South ◽  
Reporting Framework ◽  
Accounting Practitioners ◽  
African Perspective

Even though the IFRS for SMEs does provide some relief in respect of the financial reporting burden for non-public entities, there still seems to be a need for an even lower level of financial reporting. In recent years South Africa embarked upon the development of a financial reporting framework for non-public entities and various versions of this so-called micro GAAP have been issued. However, the Accounting Practices Board raised some concerns about the then proposed micro GAAP. This article highlights the South African accounting practitioners’ views from different professional bodies on micro GAAP. They generally believe that micro GAAP will represent fair presentation and that the financial statements prepared under micro GAAP can still be regarded as general purpose financial statements. Furthermore, the majority of accounting practitioners believe that there is a definite need for a third tier of financial reporting in South Africa and indicated their preference of which entities may apply micro GAAP. Legal backing of micro GAAP is also considered appropriate by the practitioners.

scholarly journals The Message Conveyed By IFRS-Compliant Information: A South African Perspective

2013 ◽  
Vol 12 (9) ◽  
pp. 1041
Author(s):  
Pieter Van der Zwan ◽  
Nico Van der Merwe
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Professional Education ◽  
Financial Statements ◽  
Primary Objective ◽  
Financial Information ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Accounting Practitioners ◽  
African Perspective

South African companies must prepare financial statements in accordance with International Financial Reporting Standards (IFRS) or other reporting standards modelled on IFRS. Literature suggests that the complexity of IFRS, which stems from detailed rules-based principles in these standards, may harm the ability of users of financial statements to understand financial information in a meaningful way. The primary objective of this study was to evaluate whether selected users and preparers of financial statements in South Africa interpret selected IFRS-compliant information prepared in accordance with rules-based principles in the manner intended by the standard-setters. The results of the study, which are based on data gathered by administering a questionnaire that contained selected IFRS-compliant note disclosures to accounting practitioners, accountancy students, and non-accountants in business, suggest that the participants of the study did not understand such IFRS-compliant information as intended by the standard-setters. Additional disclosure, the adoption of a simplified accounting framework for Small and Medium-sized Entities (SMEs) and the use of an output-based continuing professional education (CPE) system are identified as areas that warrant further research to overcome the threats posed by rules-based principles in IFRS.

scholarly journals A critical analysis of the contents of the IFRS for SMEs - a South African perspective

2011 ◽  
Vol 14 (2) ◽  
pp. 188-209 ◽  
Author(s):  
Daniel Petrus Schutte ◽  
Pieter Buys
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Financial Statements ◽  
Developed Countries ◽  
Financial Reporting Standards ◽  
Accounting Practitioners ◽  
African Perspective ◽  
Medium Enterprises ◽  
Different Levels

The International Financial Reporting Standards (IFRS) for Small and Medium Enterprises (SMEs) was developed to address the reporting needs of SMEs worldwide. Furthermore, SMEs from different parts of the world are exposed to different conditions and environments. Although the IFRS for SMEs was not intended for a specific user group,the majority of the respondents to the Exposure Draft on IFRS for SMEs were from Europe and other developed countries while only limited respondents from Africa and developing countries were involved.  This study considered the relevance of the contents of the IFRS for SMEs in the South African environment based on user requirements. Since SMEs do not necessarily have functional accounting departments and because they rely on external accountants to compile financial statements, we included accounting practitioners and trainee accountants from the SME sector in our survey. As a result we classified the contents of the IFRS for SMEs, from a South African perspective, into different levels of importance or relevance.

scholarly journals Ethics and financial reporting

1994 ◽  
Vol 25 (2) ◽  
pp. 78-85
Author(s):  
B. Nossel ◽  
Colin Firer ◽  
J. Ford
Keyword(s):  
South Africa ◽  
South African ◽  
Random Sample ◽  
Financial Reporting ◽  
Financial Statements ◽  
Ethical Perspective ◽  
Unethical Practice ◽  
Industry And Commerce ◽  
Chartered Accountants ◽  
The Way

In order to establish the way in which Chartered Accountants in South Africa regard the ethics involved in the presentation and management of reported results, the opinions of a random sample of Chartered Accountants were surveyed. It was found that South African Chartered Accountants appear to be more conservative than their American counterparts and have a different ethical perspective towards financial reporting. In general, auditors were found to be slightly more ethical than Chartered Accountants in industry and commerce. Two thirds of the respondents also indicated that they had encountered a significant amount of unethical practice in the preparation of financial statements.

The rough road towards accounting harmonization of a developing country with a French accounting culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatma Ben Slama ◽  
Ahmed Atef Oussii ◽  
Mohamed Faker Klibi
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Financial Reporting ◽  
Qualitative Methodology ◽  
Primary Data ◽  
Accounting System ◽  
Content Type ◽  
Generally Accepted Accounting Principles ◽  
Control Structures ◽  
Financial Reporting Standards

Purpose The purpose of this paper is to investigate in-depth and explain the issues related to the experience of Tunisia, a developing country, in its attempt to move from Euro-Continental rule-based generally accepted accounting principles (GAAPs) to an accounting system adapted to international financial reporting standards (IFRS). Design/methodology/approach The study is conducted via a qualitative methodology based on a content analysis of primary data from interviews with key actors involved in financial reporting in Tunisia. Findings Findings reveal that local Tunisian GAAPs, adapted to IFRS in their 1996 version, failed to establish a financial reporting accounting culture and meet public-interest firms’ informational needs. This is mainly related to factors, such as the simplified methods adopted (generally adequate to the identified needs of users of small and medium-sized entity financial statements) and the hybrid aspect of the Tunisian accounting standards due to the co-existence of Euro-Continental and Anglo-Saxon parties. Moreover, the findings show that the lack of political willpower and the absence of updates to changes in IFRS have compromised the proper functioning of standardization and control structures. Practical implications The study’s results may interest regulators and policymakers of many developing countries that have not pursued the harmonization of their local GAAPs with IFRS. In addition, findings from the research provide insights into the rough road towards harmonization, the dysfunctions of the latter and delays in developing countries. Originality/value The research highlights the complexity for an emerging country with Euro-Continental accounting traditions to move to IFRS.

Substance and Form Adoption of International Financial Reporting Standards and Financial Statement Comparability: Evidence from South Africa

2021 ◽  
pp. 2150017
Author(s):  
Christelle Smith ◽  
Elmar R. Venter ◽  
Madeleine Stiglingh
Keyword(s):  
South Africa ◽  
South African ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Global Increase ◽  
Incremental Increase

We investigate whether the comparability of financial statements changes after a switch from International Financial Reporting Standards (IFRS) in substance (i.e., content of IFRS) to IFRS in both substance and form (i.e., IFRS as issued by the IASB). While the substance of the accounting standards remains the same, form is added to the adoption in that it is now formally referred to as “IFRS as issued by the IASB.” We use data from South Africa, a country whose local generally accepted accounting practices (GAAP) was the same, word-for-word, as IFRS prior to the adoption of IFRS as issued by the IASB in 2005. We compare South African firms with firms in other countries, divided into two groups: mandatory IFRS adopters and non-adopters. We find evidence of increased comparability of financial statements of South African firms with both adopters and non-adopters. Furthermore, we find a global increase in the comparability of firms’ financial statements, consistent with market changes unrelated to IFRS adoption. However, an incremental increase in the comparability of financial statements of South African firms with the adoption of IFRS relative to non-adopting firms is consistent with benefits from South Africa’s addition of form to its existing in-substance adoption of IFRS. This increased comparability is also consistent with the benefits observed in the accounting amounts of firms from other adopting countries becoming more comparable with those of South African firms.

scholarly journals International Financial Reporting standard for Small and Medium-sized entities

2012 ◽  
Vol 5 (1) ◽  
pp. 54
Author(s):  
Z Koppeschaar
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Small Companies ◽  
Small Company ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard

<p>The International Financial Reporting Standard for Small and Medium-sized entities (IFRS for SMEs) was published as a standard by the International Accounting Standards Board (IASB) during July 2009. During 2007 South Africa became one of the first countries and the first country in Africa to early accept the proposed accounting standard (exposure draft of an IFRS for SMEs). The accounting standard will probably also be accepted by numerous other countries. The aim of this article is to investigate the applicability of this accounting standard. The results indicated that the IFRS for SMEs remains too comprehensive for the majority of small companies. The IFRS for SMEs does not satisfy the needs of South African users of small company financial statements, and as a result the accounting requirements should be simplified.</p><p><strong>KEYWORDS:</strong> Financial accounting; Financial reporting requirements; IFRS for SMEs; Small companies; Users of financial statements; Small company financial statements.</p>

scholarly journals Shopping list development and use of advertisements’ pre-store food-buying practices within different socio-economic status areas in South Africa

2017 ◽  
Vol 119 (12) ◽  
pp. 2880-2902
Author(s):  
Rodney Graeme Duffett ◽  
Crystal Foster
Keyword(s):  
South Africa ◽  
South African ◽  
Developing Country ◽  
Economic Status ◽  
Demographic Characteristics ◽  
Low Ses ◽  
Content Type ◽  
Shopping List ◽  
Food Shopping ◽  
Food Buying Practices

Purpose The purpose of this paper is to determine whether there is a difference in the development of shopping lists and use of advertisements as pre-store food-buying practices in terms of planned shopping by South African consumers who dwell in different socio-economic status (SES) areas. The paper also considers the influence of shopper and socio-demographic characteristics on pre-store food-buying practices in a developing country. Design/methodology/approach A self-administered questionnaire was used to survey 1 200 consumers in retail stores in low, middle and high SES areas in South Africa. A generalised linear model was employed for the statistical analysis of pre-store food-buying practices within the SES area groups in a developing country. Findings South African consumers that reside in high SES area displayed the largest of shopping list development, while consumers who dwell in low SES areas showed the highest incidence of advertisement usage. Several shopper and socio-demographic characteristics were also found to have an influence on pre-store food-buying practices in different SES areas in South Africa. Research limitations/implications A qualitative approach would offer a deeper understanding of consumers’ pre-store food shopping predispositions as opposed to the quantitative approach, which was adopted for this study. A longitudinal design would also provide a more extensive representation of pre-store food shopping practices over a longer time frame than cross-sectional research. The survey was conducted on Saturdays, whereas consumers who shop during the week may have different shopping and socio-demographic characteristics. Practical implications Astute food brands, marketers and grocery stores could use the findings of this study to assist with their marketing efforts that they direct at consumers in different SES areas in South Africa and other developing countries. Social implications The findings of this study may assist consumers in developing countries, especially those who reside in low SES areas, with food-buying strategies to reduce food costs, make wiser purchase decisions and reduce shopping. Originality/value No study (to the best of the researchers’ knowledge) has considered shopping list development and use of advertisements’ pre-store food-buying practices in different SES areas in a developing country. Furthermore, there is a dearth of research analysing shopper and socio-demographic characteristics in relation to pre-store food-buying practices among different SES areas in developing and developed countries.

Competition as a Discovery Procedure in the P ractice of Accounting

2017 ◽  
pp. 315-330
Author(s):  
Edgar Duarte
Keyword(s):  
Financial Reporting ◽  
Free Market ◽  
Current System ◽  
Financial Accounting ◽  
Accounting System ◽  
Financial Reports ◽  
Complex Relation ◽  
Goods And Services ◽  
Use Of Resources ◽  
Other Information

Even though they developed separately as two distinct disciplines, there is a complex relationship between accounting and econom-ics. For example: 1) accounting is a means that makes economic calculation possible; it provides the managers, the investors and lenders (current and potential), and the public in general with in-formation that aids them in assessing the profitability and the ap-propriate use of resources of a business. Although mainly histori-cal, accounting information allows them to form an expectation of future performance and hence it is useful for making economic decisions; 2) economics theorizes on the same ele-ments which ac-counting endeavors to measure; 3) the market for financial report-ing, i.e. for the financial statements and other information dis-closed periodically by companies, which is one of the products of an accounting system, is a market like that of any other good or ser-vice and it is therefore subject to the same economic analysis. Given this complex relation-ship, there are several paths an eco-nomic work on accounting could take. This author will approach his study first by acknowledging that accounting is an evolving institution, one of spontaneous forma-tion that has not yet reached, and probably will never reach, its fi-nal form. Although its form and practice has been subjected to regulation by dif-ferent governments and governmental agencies for centuries, in particular the market for fi-nancial reports of pub-lic companies, that fact does not change its spontaneous character. The author will also argue that competition is underutilized as a discovery procedure in accounting in general and in the prepara-tion of financial reports in particular. As a consequence of govern-ment intervention, better and less expensive ways of serving the consumers of financial reports have not yet been discovered under the current system. As an economist and practicing accountant, this author could be tempted to try to prescribe the form and substance of the finan-cial reports. Although admittedly economics could inform a lot about this, and the author does not deny the importance of those investigations for the marketplace of ideas, one of the main conclu-sions of this essay is that one of the tasks of competition is pre-cisely to discover the characteristics of the goods and services that best serve the consumers and hence, to discover the substance and form of the financial reports that best aid the users for their par-ticular ends. After this introduction, in the second part of this essay, the au-thor will summarize the conceptions that Friedrich A. Hayek de-veloped and that are relevant for his analysis. In the third part, an elaboration of accounting as a language is provided. In the fourth part, a brief summary of the history of accounting, since the spon-taneous emergence of the double entry bookkeeping system in me-dieval Europe until our times, will be presented, along with the origin and alleged justifications of government intervention in ac-counting. In the fifth part, the author will enumerate some of the problems presented by such intervention. In the sixth part, to con-clude this essay, a general prediction of a free market in accounting services will be presented. Financial reporting is a subset of accounting. Usually the same system fulfills several ends such as filling tax statements (tax ac-counting), tracking and allocation of cost elements to different products or services (cost accounting) and the preparation of fi-nancial reports for external users such as current and potential lenders and investors (financial accounting). In this work, the ar-guments are addressed in general to accounting and in particular to financial reporting. When names such as financial reporting, financial reports, financial accounting, external reporting and oth-ers similar are not explicitly mentioned, the arguments should be understood as applying to accounting in general.

Sign in / Sign up

Export Citation Format

Share Document