oa Meditari : Research Journal of the School of Accounting Sciences - The usefulness of corporate annual reports in South Africa : perceptions of preparers and users
|Article Title||The usefulness of corporate annual reports in South Africa : perceptions of preparers and users|
|© Publisher:||University of Pretoria|
|Journal||Meditari : Research Journal of the School of Accounting Sciences|
|Author||L. Stainbank and C. Peebles|
|Publication Date||Jan 2006|
|Pages||69 - 80|
|Keyword(s)||Accounting information, Annual report, Generally Accepted Accounting Practice, International financial reporting standards, Qualitative characteristics and Standard-setting|
This article investigates the sources of financial information used for decisions regarding the buying, holding and selling of ordinary shares. The results of this questionnaire-based study indicate that the main source of information used by those who prepare annual reports is stockbroker advice, whereas users of such reports prefer communication with management. Preparers of annual reports support the notion that annual reports are a useful source of information, but users prefer the preliminary announcement. Preparers read the income statement more thoroughly, while users read the cash flow statement more thoroughly. The article also provides information on the qualitative criteria used for assessing the usefulness of accounting practices, and some comments on the importance of setting standards and the objectives of the South African Statements of Generally Accepted Accounting Practice.
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