Gidemy Elibray

Items

• Empiriese bevindings aangaande die nakoming van korporatiewe beheerriglyne in jaarverslae van sekere genoteerde Suid-Afrikaanse maatskappye
  The implementation of the principles of corporate governance by South African companies has increased considerably since the release of the King Report in 1994. This report exerted a great influence, especially regarding the disclosure of information on corporate governance in the annual financial statements of companies. Several research projects have been undertaken to determine to what extent companies abide by these principles in their annual financial statements. This article reflects the results of a research project in which the annual financial statements of certain listed South African companies, which were published during 2000, were analysed with regard to the above-mentioned matter. The results of the project are also compared with those of a similar project undertaken in 1999. The matters addressed in this article deal with inter alia directors and directors' remuneration, remuneration committees, audit committees, codes of conduct, adherence to the King Report and employees' involvement.
• Association between South African listed companies' BEE scores and market performance : an introductory study
  PURPOSE – The purpose of this paper is to investigate whether an association exists between a firm’s black economic empowerment (BEE) score and its share returns. DESIGN/METHODOLOGY/APPROACH – The study uses linear regression that controls for the factors explaining share returns identified by Famaand French. The study includes the Top 200 BEEcompanies according to the Financial Mail/Empowerdex Top Empowerment Companies survey for 2005-2008. FINDINGS – The regression analysis shows a significant, negative association between a firm’s BEE score and its share returns. RESEARCH LIMITATIONS/IMPLICATIONS – The results suggest that managers may be over-investing in activities to improve their firms’ BEE scores. This result is surprising. The long-term effect of BEE investment, the association between the different elements of the BEE score and share returns and the optimal BEE investment level are all fruitful avenues for future research. ORIGINALITY/VALUE – One of the elements of the BEE score is the percentage of black ownership of the company. Various studies have found positive market reactions to BEE deal announcements, which relate to the percentage of black ownership of the company. By contrast, this study investigates the relationship between an entity’s BEE score, as opposed to a BEE deal announcement, and this entity’s market performance. The results would be of interest to government policy analysts, investors and managers.
• The tax implications of contracting as an independent contractor and or a labour broker
  The provisions in the Income Tax Act ("the Act") relating to independent contractors and labour brokers are limited to a few paragraphs in the Fourth Schedule to the Act. These provisions as well as the South African Revenue Services' official opinion in this regard is not sufficient to address the numerous cases where the facts are not really clear with respect to the capacity in which a person render services. The writer attempts to address the risks of contracting as an independent contractor or labour broker, give distinguishing factors in order to ease the process of applying the provisions of the Act and discuss practical problems which the contracting parties may encounter. Income Tax provisions, South African Revenue Services practices and principles, as established by the courts and case law pertaining to the common law is analysed in order to make conclusions in this regard.
• A comparison of the value relevance of interim and annual financial statements
  BACKGROUND : This study tests the value relevance of interim accounting information. The study also explores whether the value relevance of annual and interim financial statements has changed over time. AIM : It explores whether the value relevance of interim financial statements is higher than the value relevance of annual financial statements. Finally, it investigates whether accounting information published in interim and annual financial statements has incremental value relevance. SETTING : Data for the period from 1999 to 2012 were collected from a sample of non-financial companies listed on the Johannesburg Stock Exchange. METHOD : The Ohlson model to investigate the value relevance of accounting information was used for the study. RESULTS : The results show that interim book value of equity is value relevant while interim earnings are not. Interim financial statements appear to have higher value relevance than annual financial statements. The value relevance of interim and annual accounting information has remained fairly constant over the sample period. Incremental comparisons provide evidence that additional book value of equity and earnings that accrue to a company between interim and annual reporting dates are value relevant. CONCLUSION : The study was conducted over a long sample period (1999–2012), in an era when a technology-driven economy and more timely reporting media could have had an effect on the value relevance of published accounting information. To the best of our knowledge, this is the first study to evaluate and compare the value relevance of published interim and annual financial statements.
• Factors that influence first-year students’ academic performance in introductory accounting : a systematic literature review and avenues for future research
  This study involved a systematic review of academic research conducted between 1968 and 2022 on the factors that predict academic performance in introductory accounting. Several significant predictors including prior knowledge, academic aptitude and as well as personal attributes like grit and self-efficacy have been shown to influence student success in this field. The study’s findings will assist educators to adapt their programmes and integrate these predictive factors. Moreover, this research expands on the theoretical framework established by Rankin, Silvester, Wallely and Wyatt (2003), offering a holistic perspective and highlighting potential areas that warrant further investigation. Future research could explore the role of critical reasoning skills and reading comprehension’s impact as predictors of academic performance in introductory accounting.
• The value relevance of mandatory IFRS adoption in South Africa
  Dissertation (MCom)--University of Pretoria, 2011.
• The shaping of sustainability assurance through the competition between accounting and non-accounting providers
  PURPOSE : The purpose of this paper is to examine the competition between accounting sustainability assurance providers (ASAPs) and non-accounting sustainability assurance providers (NASAPs), and how this competition influences the institutionalization of the evolving field of sustainability assurance. DESIGN/METHODOLOGY/APPROACH : An interpretivist research methodology, guided by an institutional work perspective, is used to analyze interviews with 15 SAPs and 35 sustainability reporting managers (SRMs) in Australia and New Zealand. FINDINGS : ASAPs prefer to use International Standard on Assurance Engagements 3000 (ISAE3000), because it is well recognized in the profession, adheres to ASAPs’ regulatory requirements, and mirrors their financial audit methodologies. This preference influences ASAPs’ institutional work as they compete against NASAPs and how they institutionalize sustainability assurance. ASAPs’ institutional works include presenting sustainability assurance as similar to a financial audit, arguing in support of a single provider for financial audits and sustainability assurance, and undermining NASAPs and their preferred sustainability assurance standard, AA1000 Assurance Standard (AA1000AS), by appealing to senior management. In comparison, NASAPs promote AA1000AS as a specialist standard among SRMs, emphasizing the standard’s sustainability enhancing qualities and its flexibility, while discrediting ASAPs and ISAE3000 as out of touch with sustainability objectives. RESEARCH LIMITATIONS/IMPLICATIONS : A new conceptual model is constructed that can be used in institutional work research. PRACTICAL IMPLICATIONS : The accounting profession is encouraged to consider more flexible, innovative methods in new assurance markets. This involves using new assurance standards as well as developing specialist standards for new forms of assurance. Regulation over sustainability assurance could be helpful, but regulators should be careful not to stifle competition in this evolving field. ORIGINALITY/VALUE : This paper examines how competition between ASAPs and NASAPs influences the institutionalization of sustainability assurance. The paper offers a new model for the analysis of institutional work, which could be used by researchers, new insights into the emerging field of sustainability assurance, as well as a figure and discussion that clarifies the broader implications of the findings.
• Openbaarmaking van navorsings- en ontwikkelingskoste in die finansiële state van Suid-Afrikaanse publieke maatskappye (Afrikaans)
  Dissertation (MCom (Accounting Sciences))--University of Pretoria, 2007.
• Challenges of, and techniques for, materiality determination of non-financial information used by integrated report preparers
  PURPOSE : The international integrated reporting framework encourages organisations to disclose material information that affects their ability to create value. This paper aims to investigate the challenges and techniques preparers of integrated reports use to determine the materiality of non-financial information. DESIGN/METHODOLOGY/APPROACH : This paper uses an exploratory interpretive thematic analysis and an archival research approach. Qualitative semi-structured interviews were conducted with 55 integrated reporting (IR) preparers in 12 publicly listed companies, supported by the perusal of the companies’ integrated annual reports over a three-year period. FINDINGS : IR preparers find materiality determination for non-financial information challenging. This study found that preparers convert challenges into opportunities by using materiality disclosures as image-enhancing marketing tools, which causes concerns regarding weak accountability and a deviation from the International Integrated Reporting Council’s objective of improving information quality. This study found that IR preparers use various techniques in conjunction to determine materiality levels, as well as whether to disclose non-financial information in their integrated reports. The institutional isomorphism lens used in the study highlighted the issues IR preparers faced in their determined efforts of IR materiality levels under mimetic and normative isomorphism pressures. RESEARCH LIMITATIONS/IMPLICATIONS : The challenges and techniques identified can contribute to the development of a framework for materiality level determination for non-financial information. PRACTICAL IMPLICATIONS : Regulators who are concerned with ensuring sufficient information to improve investor decision-making will be interested in the techniques IR preparers use to determine materiality levels for non-financial information, to improve their regulations and frameworks. ORIGINALITY/VALUE : This study contributes to the literature regarding challenges with materiality level determination in integrated reports and techniques used by IR preparers. The application of an institutional isomorphism lens led to greater insight and understanding of IR preparers’ challenges and techniques in materiality determination. This paper makes a number of significant contributions to the IR literature. First, it identifies the usefulness of material information for decision-making and the influence stakeholders have on the materiality determination of non-financial information, which have not been mentioned in the prior literature. Second, the literature is silent on how organisations relate materiality to value creation for the purposes of determining the materiality content of an integrated report; this research provides empirical evidence of the use of value creation criteria in materiality determination. Third, the study highlights that materiality is a combination of efforts that involves everyone in an organisation. Further, the strategy should be linked to IR and preparers have indicated that integrated thinking is required for materiality determination.
• Factors impacting on the future of the IASB
  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.
• Customer contributions
  Accounting for customer contributions has until recently been an area that has been subject to varying accounting treatments. The term ‘customer contribution’ generally refers to a situation where an entity receives contributions, in the form of cash or other assets, from a customer or prospective customer or another third party entity.
• Exploring the use of artificial intelligence (AI) in the delivery of effective feedback
  Providing effective feedback in large settings presents significant challenges due to time and resource constraints. Given the importance of feedback in competency-based higher education, innovative solutions are essential. This study explores the integration of artificial intelligence (AI) to enhance feedback delivery. The research focuses on the development of a custom prompt for GPT-4 within a no-code web application, designed to deliver AI-generated feedback to second-year accounting students on discussion or essay-style questions in a large competency-based intermediate accounting course in South Africa. The prompt aligns with the principles of effective feedback and was tested in a pilot evaluation. Results indicated that the AI-generated feedback generally adhered to these principles, though some variability was observed across the different feedback dimensions. While challenges remain in consistently guiding AI to apply pedagogical best practices, the findings suggest that large language models can complement traditional feedback. Rigorous oversight of AI-generated feedback remains critical.
• Trainee accountants' perceptions of the usefulness of the business ethics curriculum : a case of SAICA in South Africa
  The main research objective of this study was to determine whether Chartered Accountancy (CA) trainees consider business ethics education they received to be useful, and to investigate if it was given the necessary attention at SAICA-accredited universities. The data obtained from CA trainees using a survey was analysed using four theoretical constructs, namely: a) Adequacy of coverage of ethics education, b) Importance of ethics, c) Impact of ethics education on ethical awareness and, d) Effectiveness of ethics education. Kolmogorov-Smirnov and Shapiro-Wilk tests of normality were applied to the theoretical constructs to determine if the data was normally distributed. The Mann-Whitney U test was used to determine if there were significant differences when opinions were categorized according to gender, study mode (part-time or full-time) and highest academic qualification. The Cronbach alpha coefficient was computed to test the reliability of participants’ responses to the survey. The study has found strong agreement among CA trainees that business ethics education is receiving adequate attention at SAICA-accredited universities and is useful in both their professional and personal lives.
• Is management accounting theory breaking free from the shackles of neo-classical economics? A South African perspective
  To the extent that management accounting is based on neo-classical economics, all decision-making is assumed to be rational, aimed at utility or profit maximisation and all circumstances influencing decisions are accepted as stationary. The approach excludes all social, cultural or historical considerations and is based on perfect information that is freely available. Neo-classical economics further assumes that minimum government intervention, which is regulated by competition, will result in maximum benefit for society as a whole. This paper aims to determine the extent to which management accounting theory has been based on these limiting assumptions and finds that emerging management accounting theory is increasingly based on alternative, more liberating foundations. This situation is in contrast to management accounting education in South Africa, which remains almost entirely based on neo-classical economics.
• The decision by management to disclose environmental information : a research note based on interviews
  The question that was considered in this research was why management discloses environmental information given the fact that it is not required by law in South Africa. The person closest to the decision to report environmental information and the decision of what type of environmental information to report, in six different organisations, where interviewed using a questionnaire consisting of open-ended questions. The responses were analysed for commonality. Although respondents seldom explicitly referred to pressure, it was clear that this was a major reason for environmental disclosure. Some of the reasons for reporting that was heard often were accountability, transparency , peers did it and to stop the bad news reported by others. The fact that external pressure plays such a large part in the disclosure decision reminds one of legitimacy theory.
• Research on extended external reporting assurance : trends, themes, and opportunities
  The assurance of non-financial information (NFI) included in extended external reports (EERs) is a global activity that has far-reaching consequences for business, investors, other stakeholders, and society. EERs remain largely unregulated with few standards. Along with our companion paper (Krasodomska, Simnett, & Street, 2021, Journal of International Financial Management and Accounting, 25, 209), we contribute to the current discussion on EER assurance by providing an overview of the academic literature to inform the standard setting initiatives of the International Auditing and Assurance Standard Setting Board (IAASB), as well as the practice of assurance of EERs. We identify 121 articles on extended external reporting (EER) assurance published between 2009 and 2020 across 35 journals ranked A*, A, and B on the Australian Business Deans Council (ABDC) 2019 Journal Quality List. These articles cover archival, experimental, interviews, case studies, surveys, and content analysis research methods and serve as a possible input for standard setting activities. We document a rapid increase in this literature with almost half of the articles published in the last 3 years, 2018 to 2020. Finally, we offer ideas for future research directly linked to the proposed Guidance of the IAASB on EER assurance. We encourage researchers to engage in these and other issues of the IAASB’s Guidance to assist them with valuable input for their standard setting activities.
• Developing digital creativity through authentic assessment
  Digital creativity, the use of digital tools and technologies to explore creative ideas and new ways of displaying your ideas, research or work, is emerging as an important competency for graduates across many disciplines. The development of digital creativity competency in domains traditionally perceived as being less creative, including the accounting profession, has yet to be explored. This study reports on the use of an authentic assessment for learning to develop students’ digital creativity in an undergraduate competency-based accounting course. It documents the design and development of the assessment and analyses the students’ digital creative outputs as well as lived experiences. Although many of the outputs were at a lower level of digital creativity, most of the students appear to have experienced the process positively and gained insight into their course material and need for digital creativity in accounting. The design of the authentic assessment can inform the development of similar assessments in other disciplinary settings.
• A pre- and post-election comparison of the commitment of South Africa's listed companies to sustainable development
  In South Africa the first democratic election brought about the possibility for the South African business community to compete internationally, unhindered by the limitations and sanctions designed 10 counter the system of apartheid. To be admitted lo the global market, companies must comply with international environmental standards. In order to ascertain the level of commitment of the South African business community to the concept of sustainable development, surveys were undertaken during August 1993 to January 1994 as well as April to May 1995 among Soudi African companies listed on the Johannesburg Stock Exchange. Based on the results we conclude that there is an increased commitment by South Africa's listed companies to the concept of sustainable development subsequent to the 27 Aprii 1994 election.
• Financial Performance of Environmentally Responsible South African Listed Companies
  Dissertation (DComm(Accounting Sciences))--University of Pretoria, 2002.
• Part 1 : deferred tax 0%, 14.5% or 29%?
  The SAICA recently issued Circular 1/2006, Disclosures in relation to deferred tax. The purpose of this Circular is to provide guidance on additional disclosures required for deferred tax where the expected manner of recovery of the carrying amount of an asset could materially influence the deferred tax balance. However, the contents of the Circular is likely to raise a fresh debate amongst preparers and auditors of financial statements around some of the measurement issues resulting from paragraph 51. The interpretation of paragraph 51 is discussed, the application thereof to various types of assets is examined, as well as the application of the Circular. The meaning of the phrase "recovery of the carrying amount of an asset" is explored. This is done, firstly, by considering the meaning of the "carrying amount" of an asset and, secondly, by considering the potential manners in which the carrying amount of an asset can be "recovered". The application of these principles is then considered for revalued property, plant and equipment. Finally, the requirements of the Circular are highlighted.
• Die faktore wat bydra tot die sukses van normering (Afrikaans)
  Dissertation (M Com (Accounting Sciences))--University of Pretoria, 2007.
• Corporate governance and the value relevance of accounting information : empirical evidence from South Africa
  PURPOSE : The importance of corporate governance has grown dramatically over the last 20 years, owing to corporate fraud and management misconduct. Corporate governance reforms indicate that Regulators regard governance as an important means of establishing credible financial reporting. The purpose of this study was to determine whether internal corporate governance attributes and accounting information affect the value relevance––as proxied by the share price––of large profitable companies listed on the Johannesburg Stock Exchange (JSE). ORIGINALITY/VALUE : To the best of the authors’ knowledge, this was the first study to examine the value relevance of accounting information by considering the impact of internal corporate governance attributes, since the commissioning of the King IV Report on Corporate Governance for South Africa. DESIGN/METHODOLOGY/APPROACH : To determine the impact of corporate governance attributes on the value relevance of accounting information, the Generalised Linear Mixed Effects model was used to test the study hypothesis. The study sample consisted of 62 firms listed on the JSE between 1 January 2015 and 31 December 2018. Six variables were used to measure internal corporate governance attributes, namely board size, board independence, staggered board, internal board committees, board activity and board gender diversity. FINDINGS : The findings indicated that the size of the board is value relevant and negatively affects share price. It could also be posited that net asset value per share (NAVPS) and earnings per share (EPS) assist in explaining the share price of JSE-listed firms. RESEARCH LIMITATIONS : Three limitations have been identified. Firstly, the generalisability of the results may be limited on account of the small sample size and the unique setting of South Africa—a developing country. Secondly, the findings are confined to a distinct time-period, as they were generated from a sample taken over a four-year period. Lastly, the study examined the relationship between six internal corporate governance attributes. Alternative proxies may provide different results.
• Social and cognitive dimensions of language in the learning of introductory accounting
  Thesis (PhD)--University of Pretoria, 2019.
• Accounting for arrangements - Part 2
  SIC 27 (AC 427) and IFRIC 4 (AC 437) question two specific assertions with regard to lease transactions made by the management of an entity in preparing its financial statements, namely existence, occurrence and completeness. SIC 27 (AC 427) poses the question whether all transactions that have been accounted for in terms of IAS 17 (AC 105) are actually, in substance, lease transactions (existence or occurrence of lease transactions). SIC 27 (AC 427), therefore, requires the preparers of financial statements to consider arrangements where legal leases form part of a structured transaction to determine whether these arrangements, or part thereof, should be accounted for in terms of IAS 17 (AC 105). IFRIC 4 (AC 437), which was considered in the first article of this two-part series, poses the question whether all transactions, which are legally not leases, but are in substance leases, are accounted for in terms of IAS 17 (AC 105).
• The South African government's response to COVID-19
  PURPOSE : This paper provides a critical analysis of the South African government's response to the COVID-19 crisis and its effect on state finances and budgets. DESIGN/METHODOLOGY/APPROACH : The paper critically analyses publicly available data. FINDINGS : The South African government's initial health response was praised by the international community, given the early lockdown and extensive testing regime. The lockdown devastated an already precarious economy, which led to negative social consequences. The initial lockdown delayed the epidemic, but subsequently, the infection rate climbed, requiring new restrictions, suggesting further economic disruption. The government has had to increase its borrowings, while the future tax take is forecast to be significantly reduced, a combination which will lead to a severely constrained public purse for many years to come. This will limit the government's ability to address the basic social needs that predated the COVID-19 crisis. ORIGINALITY/VALUE : This is one of the first academic papers to critically assess the effect of the South African government's response to the COVID-19 crisis on state finances and budgets.