- A-Z Publications
- Meditari : Research Journal of the School of Accounting Sciences
- Previous Issues
- Volume 15, Issue 1, 2007
Meditari : Research Journal of the School of Accounting Sciences - Volume 15, Issue 1, 2007
Volume 15, Issue 1, 2007
Source: Meditari : Research Journal of the School of Accounting Sciences 15, pp 1 –18 (2007)More Less
The start of the twenty-first century was marred by a spate of company collapses that involved fraudulent accounting activity. In many cases, company executives, many of whom belonged to the accounting profession, perpetrated the fraud. As a result, internationally, the accounting profession has suffered an enormous loss of goodwill, and its reputation as a profession with integrity has been severely harmed. Accounting professionals are no longer accorded the high regard they commanded in the past.
The consequences for the profession have been far-reaching: accounting now faces a long, uphill battle to restore its reputation and to regain the trust of the international business community.
This study replicates two famous international studies in the South African context. The focus of the study was to establish whether factors such as the Code of Professional Conduct of the South African Institute of Chartered Accountants (SAICA), the corporate ethical environment and their age influence the ethical judgement of individual accountants. The first such study was conducted in the United States of America (USA), and it was followed by similar research in Turkey. The results of these two studies suggested very different factors that could influence accountants' ethical judgement. The study reported in this article investigated South African chartered accountants; and its results were similar to those obtained in the US study.
Source: Meditari : Research Journal of the School of Accounting Sciences 15, pp 19 –33 (2007)More Less
The sustainability of higher education institutions is affected various things, particularly by student satisfaction and the financial stability of the institution. An analysis of student attrition and retention plays a vital role in assessing the sustainability of a higher education institution.
Using suitable analysis techniques to do success profiling of prospective and current students is crucial for students and institutions alike. Success/risk estimation is essential for any higher education institution (HEI), because determining such factors can assist higher education institutions in fulfilling their obligation to provide support, guidance and interventions for their prospective and existing students. Strategic decisions in this regard, by both students and institutions, should be based on valid and reliable profiles. The validation of established profiles increases the accuracy of existing profiles and increases the efficiency of institutional strategic planning.
This article reports on the validation of a success profile for first year Accounting students established by the authors of this article in an earlier study in an open and distance learning (ODL) environment at the University of South Africa.
Author L. OlivierSource: Meditari : Research Journal of the School of Accounting Sciences 15, pp 35 –50 (2007)More Less
Despite the South African legislature's intention to introduce capital gains tax (CGT) as a simple and clear tax, it is an extremely complex tax. Several provisions of both the Eighth Schedule to the Income Tax Act 58 of 1962 and the Act itself have to be taken into account in determining whether a taxable capital gain or an assessed capital loss has arisen during the year of assessment. The application of these principles is often surrounded by uncertainty. Hence, the purpose of this article is not only to provide an overview of some of the different provisions that have to be taken into account and the interaction between them, but also to highlight some of the problems arising from the application of the principles themselves.
Exploring a blended learning approach to improving student success in the teaching of second year accountingSource: Meditari : Research Journal of the School of Accounting Sciences 15, pp 51 –69 (2007)More Less
Blended learning is the new buzzword in higher education. International trends in open and distance learning proclaim that the use of blended learning is essential for any distance education institution that wishes to remain relevant in an increasingly contested market. Blended learning refers to the use of a variety of technologies, pedagogies, contexts and delivery modes (such as online learning) to create a strategic mix that will increase student success. Online learning environments form a crucial part of any blended learning strategy. In the South African context, access to such online environments is a controversial issue.
This article reports on a study which attempted to determine how many of the students registered for Accounting at second year level at the University of South Africa (UNISA) would benefit from a blended learning approach.
Recognition of restricted receipts by not-for-profit organisations : problems, standards and empirical resultsAuthor J. RossouwSource: Meditari : Research Journal of the School of Accounting Sciences 15, pp 71 –89 (2007)More Less
Not-for-profit organisations often have accounting problems in the recognition of donations where donors impose restrictions on how funds are spent. The specific receipts which cause most problems relate to grants made 'in advance', grants received for a specific purpose, and capital grants. This article investigates whether some of these restricted receipts must be recorded as income in the income statement; whether others must be recorded directly against a fund, or whether unused funds must be recorded as a liability. This article discusses these problems and the principles of accounting standards already issued specifically for not-for-profit organisations in some countries. This article also presents the results of an empirical study done in South Africa which has a bearing on the recognition of certain restricted receipts. Recommendations are made on the most appropriate way for not-for-profit organisations to record receipts in advance, receipts for specific purposes and capital grants in their accounting systems.
Headline earnings per share : financial managers' perceptions and actual disclosure practices in South AfricaSource: Meditari : Research Journal of the School of Accounting Sciences 15, pp 91 –113 (2007)More Less
Earnings per share (EPS) is a key ratio which must be disclosed in the financial statements of South African listed enterprises. It is used to compare the performance of an enterprise over time and to compare its performance with that of other enterprises. Financial analysts also use EPS to calculate the price-earnings (PE) ratio. In South Africa, listed companies are required to disclose three EPS measures, namely basic EPS (BEPS), diluted EPS (DEPS) and headline EPS (HEPS). This article reports on the results of a study of financial managers' perceptions of the importance of HEPS and the actual disclosure practices relating to HEPS in selected listed companies' annual reports.
This article also reports on financial managers' perceptions of selected other accounting measures of performance (such as EPS) and other financial indicators not ordinarily found in the annual report (such as the PE ratio), of the importance of EPS measures in general and of headline EPS in particular. The study found support for HEPS, compared to other per share measures, despite misconceptions regarding the objective of HEPS.
The study also found that 95% of the selected companies disclosed HEPS together with the required reconciliation. However, half of the companies contravened the headline earnings definition. As a result, approximately one third of all selected companies overstated their HEPS.
Source: Meditari : Research Journal of the School of Accounting Sciences 15, pp 115 –135 (2007)More Less
In his 2006 State of the Nation Address, President Thabo Mbeki indicated that the regulatory environment for small businesses would be improved, as this sector plays an important role in the national strategy for accelerated and shared growth. The aim of this study is to determine whether the size of an enterprise and the sector in which the enterprise operates has an impact on how the enterprise's tax responsibilities are administered and managed. A survey was conducted amongst small and medium enterprises in the manufacturing, retail and business services sectors in Gauteng. The study focused on Gauteng because the majority of small, medium and microenterprises (SMMEs) are located in this province. The study found that most small and medium enterprises (SMEs) in the business services sector outsource their tax responsibilities because they lack the time needed to manage these functions. It was also found that the size and type of organisation affects the role taxation inputs play in business decisions. The SMEs included in the survey preferred a reduction in interest and penalties charged as a taxation relief measure.