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- Meditari : Research Journal of the School of Accounting Sciences
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- Volume 16, Issue 1, 2008
Meditari : Research Journal of the School of Accounting Sciences - Volume 16, Issue 1, 2008
Volume 16, Issue 1, 2008
The essence of a university and scholarly activity in accounting, with reference to a Department of Accounting at a South African universityAuthor D.B. Van der SchyfSource: Meditari : Research Journal of the School of Accounting Sciences 16, pp 1 –26 (2008)More Less
There is increasing academic pressure on Departments of Accounting in South Africa whose academic programmes are accredited with the South African Institute of Chartered Accountants (SAICA). The reason for this that the academic training of potential chartered accountants has long been their main academic focus, and they often fail to do justice to their real academic mission of scholarly activity in accounting (the pursuit of science as an endeavour), which is central to the essence of a university. The quality of such departments' research is not yet an important criterion for their prestige. However, only Departments of Accounting that develop Accounting as a social science in scholarly activity in accounting deserve international recognition. This empirical study attempts to convince Departments of Accounting, particularly those whose academic programmes are accredited by SAICA, to embark on scholarly activity in accounting as soon as possible.
Source: Meditari : Research Journal of the School of Accounting Sciences 16, pp 27 –41 (2008)More Less
In financial analysis, forecasting often involves regressing one time series variable on another. However, to ensure that the models are correctly specified, one needs to first test for stationarity, co-integration and causality. In testing for causality, the variables should be stationary. If non-stationary, one can estimate the model in difference form, unless the variables are co-integrated. This article determines whether cash flow and earnings variables are stationary, and which variable causes the other, using econometric analysis. In most cases, cash flow variables are found to cause earnings variables. This is so when the models are estimated in levels. However, when estimated in first differences, the causal relationship tends to be reversed such that earnings cause cash flows. Further study is recommended, whereby panel data could be used to improve the power of the tests.
Author P.W. BuysSource: Meditari : Research Journal of the School of Accounting Sciences 16, pp 43 –58 (2008)More Less
In recent times there have been major developments in the areas of digitising business information, which can impact the financial reporting supply chain. Such developments include the eXtensible Business Reporting Language (XBRL) technology. The South African regulator of financial services and a major South African retirement fund administrator were recently the first South African organisations to embark on an XBRL proof of concept initiative as part of an attempt to enhance their financial reporting supply chain, from initial data recording, to the submission of the reports, to the analysis of the data. This paper provides highlights of this initiative against the background of current XBRL developments, the financial reporting supply chain and the digitising efforts of such supply chains.
Author R. Du BruynSource: Meditari : Research Journal of the School of Accounting Sciences 16, pp 59 –78 (2008)More Less
This article proposes a disclosure framework for the reporting of HIV / Aids-related information in annual reports to address the lack of consistency in current disclosure practices. A literature review was undertaken to determine business risks and responses relating to the disease, followed by an empirical investigation into voluntary disclosure on HIV / Aids by companies listed on the JSE Securities Exchange. The investigation consisted of a thematic content analysis for the period 1998 to 2004. The results of both the literature review and the empirical investigation are used to recommend a disclosure framework that companies can use when reporting on HIV / Aids in their annual reports. The framework recommends the disclosure of HIV / Aids risks and responses by organisations.
Source: Meditari : Research Journal of the School of Accounting Sciences 16, pp 79 –93 (2008)More Less
eXtensible Business Reporting Language (XBRL) is an important new technology for the electronic communication of business and financial data and, by implication, relevant to, inter alia, chartered accountants. Because research in Australia and the USA showed unacceptably low levels of awareness and understanding of XBRL, research was conducted to determine the levels of awareness and understanding of XBRL in South Africa. The study was limited to chartered accountants. The results showed that the majority of chartered accountants in South Africa are currently unaware of XBRL and few fully understand it. In spite of these findings, the majority of respondents acknowledged the fact that it was necessary for either them or someone in their organisation to investigate the matter of XBRL in the near future.
An empirical study of the determinants of net investment flows of South African General Equity unit trustsAuthor R.J. RudmanSource: Meditari : Research Journal of the School of Accounting Sciences 16, pp 95 –116 (2008)More Less
The unit trust industry is one of the fastest growing areas in the financial sector. This dramatic growth has raised concern about the level of investors' knowledge, or lack thereof, relating to the factors associated with investment decisions. This study investigates the factors and dynamics behind cash flows into and from General Equity unit trusts from September 1996 to September 2001, and the extent to which market factors and unit trust characteristics explain the variation in cash flows.
The analysis shows a significant positive relationship between cash flows and contemporaneous returns of the General Equity unit trusts and the equity market, while being negatively related to one-month lagged returns and cash flows. Several of the determinants, including interest rates, fee structures, risk and fund size, are found to be insignificant at a 5% level. The results indicate that investors exhibit an element of profit maximisation, driven by performances and irrationality, in that they give less consideration to fee structures, risk and fund size.
Source: Meditari : Research Journal of the School of Accounting Sciences 16, pp 117 –137 (2008)More Less
This paper investigates the factors influencing the future of the IASB, using as the point of departure, a review of its historical progression towards becoming the global accounting standard-setting authority. It concludes that the IASB is an organisation vulnerable to (1) political lobbying of influential institutions, (2) US accounting authorities decision makers, (3) potential accounting scandals, and (4) cultural differences resulting in the misapplication of its standards around the world. Such factors should be borne in mind when charting the next steps for the IASB and in evaluating the comparability and quality of accounts produced under IFRSs around the world.
Current practices for resource allocation in external audits of listed South African long-term insurersAuthor S.P.J. Von WiellighSource: Meditari : Research Journal of the School of Accounting Sciences 16, pp 139 –152 (2008)More Less
The purpose of this study was to determine current practices for two salient aspects of the audits of listed South African long-term insurers by empirically analysing prevailing practices. First, current practices for the composition of the audit teams responsible for these audits are determined. Thereafter current practice is determined for the proportion of audit time spent by the different specialists on audit teams on the audit of the high-risk components of policy liabilities and the related earnings. When allocating audit staff and establishing continuing professional development plans for staff the auditors of all listed and unlisted South African long-term insurers could use the findings of the study as benchmarks.