- A-Z Publications
- Meditari : Research Journal of the School of Accounting Sciences
- Previous Issues
- Volume 13, Issue 1, 2005
Meditari : Research Journal of the School of Accounting Sciences - Volume 13, Issue 1, 2005
Volume 13, Issue 1, 2005
Source: Meditari : Research Journal of the School of Accounting Sciences 13, pp 1 –17 (2005)More Less
A relatively simple way to analyse a company's financial status is to examine the positive or negative signs of its cash flow patterns and to link certain characteristics to selected cash flow patterns.
In this article, the frequencies of cash flow patterns in South African listed industrial companies are examined for a single financial period, as well as for three different cumulative periods, ending in 1993, 1996 and 2002 respectively. Mature companies, i.e. those with positive cash flow from operating activities, negative cash flow from investing activities and negative cash flow from financing activities, were identified as the most frequently occurring pattern during the selected periods.
The study shows that the mature companies had the highest median amongst the more regular cash flow patterns, for the net profit percentage, for the cash flow from operating activities before the payment of dividends as a percentage of sales and for dividend payout. The study also reveals that companies in their growth phase had the highest medians for investment outflow, for sales growth and growth in total assets, for accounts payable and inventories. Start-up companies had the highest medians for inflow from financing activities and for total debt to total assets.
Source: Meditari : Research Journal of the School of Accounting Sciences 13, pp 19 –27 (2005)More Less
This article reports on the results of a survey on how companies listed on the main board of the JSE Securities Exchange SA make a capital investment decision in practice. The respondents to the survey questionnaires provided answers regarding the methods that their companies use to evaluate capital investments, as well as to evaluate mutually exclusive projects. The results suggest that South African companies prefer to use the internal rate of return (IRR) and net present value (NPV) to evaluate capital investments. In addition, there appears to be a correlation between the methods that companies use and the size of their annual capital budget. Finally, a hypothetical problem was presented to the respondents, who were asked to choose between two mutually exclusive projects. Interestingly, the majority of the respondents chose the project which added the least value.
The academic success and failure of black chartered accounting graduates in South Africa : a distance education perspectiveSource: Meditari : Research Journal of the School of Accounting Sciences 13, pp 29 –50 (2005)More Less
This study was based on the perceptions of lecturers and black CTA students at Unisa, a South African distance education university regarding on factors that contribute to black students' academic success and failure.
The main purposes of the study were to help black CTA students to understand the reasons for success and failure better, and to improve lecturers' teaching approach(es). The research shows that students and lecturers have divergent views on what factors contribute to academic success or failure and the relative importance of the various factors.
Source: Meditari : Research Journal of the School of Accounting Sciences 13, pp 51 –65 (2005)More Less
Differential corporate reporting exists in one form or another in many countries and it is currently on the agenda of the International Accounting Standards Board's (IASB's). This article provides some background on this practice and, in particular, on the current position of the IASB and the accounting profession in South Africa with regard to differential corporate reporting.
The article also reports on the results of a postal survey of South African Registered Accountants' and Auditors' views on the form that differential corporate reporting should take. It was found that there is some support for limited deviations from Generally Accepted Accounting Practice (GAAP), in agreement with DP 163 - Limited Purpose Financial Statements issued by the South African Institute of Chartered Accountants (SAICA).
Source: Meditari : Research Journal of the School of Accounting Sciences 13, pp 67 –86 (2005)More Less
The objective of this study was to identify the impact of a perceived inadequacy of authoritative South African financial reporting guidance for long-term insurers, on the basic financial statement characteristic of comparability. The authors attempted to identify areas of non-comparable presentation and disclosure and to suggest relevant guidance.
To assess comparability, the financial statements of five insurers were evaluated using a checklist specifically developed for this study. This process identified seven main categories of significant non-comparable presentation and disclosure practices. Solutions were proposed for these areas, based inter alia on existing international literature and guidance.
Author P.L. WesselsSource: Meditari : Research Journal of the School of Accounting Sciences 13, pp 87 –103 (2005)More Less
Information technology can be seen as one of the key drivers in a changing business environment as it is integrated into almost all aspects of business. All the research investigating the skills and abilities that a professional accountant will need in future emphasises the importance of understanding and being competent in the use of information technology. Whether professional accountants function as financial managers within a specific organisation, act as independent evaluators of an organisation, financial information and systems, or act as consultants advising organisations, they will have to interact with and be knowledgeable about information technology to enable them to perform their jobs competently.
The purpose of this article is to identify which information and communication technology (ICT) skills are critical for professional accountants who wish to be competent in the current and future working environment. A literature review was conducted of research by various professional accountancy bodies and other stakeholders to determine:
- the competence that future professional accountants will need; and
- the impact of the changing environment on the curricula set by professional accounting bodies.
Author A. WieseSource: Meditari : Research Journal of the School of Accounting Sciences 13, pp 105 –120 (2005)More Less
When the FASB adopted an impairment test approach in 2001, rather than amortisation, the accounting for goodwill arising from an acquisition took a step in a new direction. The IASB, seeking international convergence and global harmonisation, also implemented this change when it issued IFRS 3 in 2004.
Moving away from amortisation towards an impairment test involves a radical change. The research on which this paper is based was undertaken to examine these two very different accounting practices for the treatment of goodwill and to assess the possible impact that a transition from the one to the other may have on financial reporting.
Author H.P. WolmaransSource: Meditari : Research Journal of the School of Accounting Sciences 13, pp 121 –133 (2005)More Less
Business simulations are increasingly used to facilitate knowledge transfer in management education. Although such simulations have already been widely applied in other disciplines, this method of facilitating learning has not yet been used much in financial education. This article reports on three studies that examine the value added by this experiential learning method in a financial management course, as perceived by students. The reasons for students' experiencing this teaching method as positive are investigated. It would seem that financial education has much to gain from a wider application of business simulations.