Gidemy Elibray

Items

• 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.
• South African accounting students' reading comprehension of the IASB's Conceptual Framework and selected International Financial Reporting Standards
  Dissertation (MCom)--University of Pretoria, 2015.
• The association between the seven elements of the black economic empowerment score and market performance
  The black economic empowerment (BEE) score consists of seven elements, namely ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development. The purpose of this study is to establish whether an association exists between an entity’s BEE elements and its share returns in the short term. Based on prior literature, it appears that the market reacts positively to an announcement of a BEE deal, although the literature also indicates that an entity’s BEE score, which includes all seven elements of the BEE score, bears a negative relationship to its share returns. Therefore the association between the various BEE elements and share returns needs to be investigated. The study uses a multivariate regression analysis that controls for factors influencing share returns. The study includes the BEE element data as obtained from the survey of the top empowerment companies carried out by Empowerdex/Financial Mail for the period 2005 to 2011. The results of this study indicate that a significant positive association exists between the management control element of the BEE score and the entity’s share returns. Furthermore, a significant negative association exists between the ownership and preferential procurement elements of an entity and its share returns. This study contributes to the literature on BEE in the accounting and finance field in South Africa as well as enhances the understanding and effect of BEE compliance through implementation of the generic scorecard as required by the 2007 codes of good practice. The results of this study would be of interest to government policy analysts, investors and managers.
• A real estate sale : a construction contract or a sales contract?
  When considering the sale of property (real estate), two points of time become relevant, the date the sales contract is signed or alternatively the date that the contract is completed and the legal title passes to the buyer. It is likely at the time of signing the contract that all material information relating to the contract will be known, e.g. the selling price and related expenditure. Therefore, in the absence of any uncertainty, it would be possible to recognize the revenue from the disposal of the property at the time the contract is signed. Recognition of a real estate sale is however complicated when the contract to purchase the real estate is signed prior to, or during the construction of that real estate. The question is whether the contract signed still falls within the scope of IAS 18 (AC 111). To address this situation the International Financial Reporting Interpretations Committee (IFRIC) of the International Accounting Standards Board (IASB) has issued a draft interpretation note addressing real estate sales and when these sales fall within the scope of IAS 18 (AC 111), Revenue, or IAS 11 (AC 109), Construction Contracts. This was issued by SAICA for comment as ED 226.
• The reporting responsibilities of accountants in terms of South African anti-money laundering legislation
  Dissertation (MPhil)--University of Pretoria, 2012.
• The income tax consequences of closing down a division or a branch of a company
  It is a sign of today's economic realities that divisions and branches of companies are from time to time being closed down. This article investigates the income tax implications of this scenario with regard to the various expenses and costs incurred by the company. Special attention is given to the taxation implications of recurring expenses continuing after the actual close down as well as the aspects affecting trading stock, allowances in respect of capital assets and the position of debtors.
• The informativeness of voluntary disclosure in the annual reports of listed industrial companies in South Africa
  Users of annual reports require an extensive range of financial and non-financial information, whether mandatory or voluntary, in order to assess the fair value of an investment. The extent and quality of voluntary information is dependent on company policy, and companies need to make decisions in favour of or against the disclosure of certain informative items. A survey was conducted to examine the perceptions of the compilers and the users of annual reports on the price-informative value of voluntary disclosures in annual and interim reports. The rankings awarded by compilers and users to the various voluntarily disclosed items were compared in order to determine the significance of the differences between the perception of the two groups. Significant differences were identified and suggestions are made for the improvement of corporations' voluntary disclosure strategies.
• Accounting education in Africa
  No abstract available.
• Fair value intensity an analyst forecasts
  Analysts’ earnings and book value forecasts play an important role in price discovery in equity markets. As the role of fair value measurements in accounting increases, the impact on analysts’ ability to accurately forecast earnings and book values is unclear. This article develops a method to calculate the degree of fair value measurement in financial statements and investigates the impact thereof on the accuracy of analysts’ book value and earnings forecasts, using a sample of firms listed in the United States and the United Kingdom from 2010 to 2014. Relying on multivariate regression findings, the article shows that greater fair value intensity decreases the 12-month analyst forecast accuracy for earnings in both countries. Moreover, there is some evidence that higher fair value intensity decreases the accuracy of analysts’ book value forecasts. It therefore appears that increased fair value intensity under a mixed measurement approach limits the ability of analysts to forecast earnings, without a compensating impact on forecasts of book values.
• Tax topics a trainee chartered accountant should be taught : a survey of perceptions in and outside public practice
  This paper presents the results of a survey designed to determine what tax topics are important in the educational background of a trainee accountant entering the training environment in South Africa. These topics were then compared to the 2008 tax syllabus prescribed by SAICA and taught at accredited universities in respect of the 2009 Qualifying Examination. The results indicated that the 2008 syllabus is largely meeting the expectations of respondents both in and outside public practice, although there are a number of topics that the syllabus setters and educators should reconsider when next reviewing and updating the 2008 syllabus and as part of the considerations for the new competency framework.
• How to assess the effectiveness of accounting education interventions : evidence from the assessment of a bridging course before introductory accounting
  PURPOSE : This study aims to provide a thick description of a four-day bridging course in introductory accounting presented before the start of a student’s first year. The course aims to address the lack of prior accounting knowledge. The study also evaluates the effectiveness of the course using econometric techniques. Treatment effects are considered when interpreting the results. DESIGN/METHODOLOGY/APPROACH : This voluntary intervention used a quasi-experimental research design and quantitative techniques, including the application of propensity score matching (PSM), to isolate the treatment effect on the treated and untreated groups. FINDINGS : A positive and significant association is reported between attending the bridging course and performance in the first assessment. RESEARCH LIMITATIONS/IMPLICATIONS : A bridging course in accounting offers higher educators an opportunity to ensure that students are academically better prepared when entering university. This course provides adequate prior knowledge from which a student will benefit during the first assessments, which may contribute to increased self-efficacy and retention. This intervention has social implications for students as they can interact, participate and easily transition from school to university. Social implications include learning communities that are formed at the onset of their studies. ORIGINALITY/VALUE : Bridging courses have been presented in other disciplines with positive results but not yet in accounting. Bridging courses in accounting are viable interventions to address gaps in prior knowledge and assist with the transition from school to university. This study expands literature by demonstrating the application and interpretation of PSM in quasi-experimental designs.
• Is a client's corporate social responsibility performance a source of audit complexity?
  This study examines whether corporate social responsibility (CSR) performance impacts financial audit fees of U.S. listed firms from 2000 to 2016. We use the CSR performance ratings from the KLD database to measure firms' CSR performance. Using the sum of a firm's CSR strengths and concerns as a measure of a firm's overall involvement in CSR‐related matters, we find that a greater score is associated with higher audit fees. Further, we disaggregate this measure into CSR concerns and CSR strengths and find that both measures are positively related to audit fees. In additional analyses, we find that firms involved in certain CSR initiatives (strengths) as well as controversies (concerns) pay higher audit fees due to increased audit complexity. Our findings suggest that firms' CSR performance is a source of audit complexity, in addition to other sources that have been documented in prior literature.
• Fair value measurements of control premiums
  As the overview of the current state of research within this paper shows, the debate around fair value measurements is far from over. This paper analyses fair value measurement requirements in a controversial scenario, namely when a control premium exists. The analyses of the paper show that, while measurement rules around control premiums could have a material impact on fair value measurements and the financial statements as a whole, significant fair value measurement issues remain unresolved. The conclusion is that fair value measurements should include or exclude control premiums consistently. It is argued that including control premiums for all fair value measurements is the most faithful representation of the underlying economic phenomenon. This paper contributes to the fair value measurement debate by comparing the merits of alternative fair value measurements for control premiums and highlights an area where researchers, investors and other users should exercise caution when evaluating financial statements.
• The role of the South African regulatory authorities in combating money laundering and terrorist financing perpetrated through alternative remittance systems
  Dissertation (MPhil)--University of Pretoria, 2010.
• An assessment of the relationship between environmental and financial reporting by South African listed companies in the mining sector
  Dissertation (MCom)--University of Pretoria, 2011.
• Social responsibility disclosure by South African industrial holding companies : a research note
  The disclosure of social responsibility in the 1982, 1987, 1992 and 1997 annual reports of ten companies listed in the industrial holdings section of the Johannesburg Stock Exchange was analysed. Information on employee-related matters is disclosed most often, followed by community-related information and environment-related information. Descriptive statements (as opposed to monetary or quantitative non-monetary disclosures) predominate, as does good news (as opposed to bad news or neutral disclosures). Disclosures increased over the years, with a dramatic increase from 1992 to 1997.
• Cash flow statements : is there room for improvement?
  The issue of a Statement on Cash Flow Information (AC 118) has generally been welcomed and has contributed to improved reporting standards. However, certain problem areas still exist and need to be addressed in the near future. This article discusses some aspects that require clarification, that have not been addressed or that may require reconsideration.
• To hedge account or not to hedge account? (Part 1)
  Hedge accounting has developed as the traditional accounting measurement model fails to present fairly the effects of hedging. This article defines hedging, considers whether hedge accounting should be permitted and also addresses some of the problems associated with hedge accounting.
• A review and synthesis of contemporary sustainability accounting research and the development of a research agenda
  The study provides a comprehensive overview of contemporary sustainability accounting research, comprising 1,283 academic articles published in 54 journals (2014–2020). Sustainability disclosure is the most frequently researched topic and a substantial proportion of publications analyse a national setting, examine a European context, investigate listed firms, adopt an empirical archival research method, apply social and political theories, or focus broadly on sustainability. Based on this analysis, we develop a conceptual framework of sustainability accounting influences. We discuss prevalent themes, empirical findings and apparent inconsistencies, reflecting on recent trends and the state of sustainability accounting knowledge, developing an agenda for future research.
• The disruption of blockchain in auditing – a systematic literature review and an agenda for future research
  PURPOSE : This paper presents a systematic literature review, including content and bibliometric analyses, of the impact of blockchain technology (BT) in auditing, to identify trends, research areas and construct an agenda for future research. DESIGN/METHODOLOGY/APPROACH : The authors include studies from 2010 to 2020 in their structured literature review (SLR), using accounting journals on the Scopus database, which yielded 40 articles with blockchain and auditing at its core. FINDINGS : One of the contributions of the authors’ analyses is to group the prior research, and therefore also the agenda for future research, into three main research areas: (1) Blockchain as a tool for auditing professionals to improve business information systems to save time and prevent fraud; (2) Smart contracts enabling Audit 4.0 efficiency, reporting, disclosure and transparency; (3) Cryptocurrency and initial coin offerings (ICOs) as a springboard for corporate governance and new venture financing. The authors’ findings have several important implications for practice and theory. PRACTICAL IMPLICATIONS : The results of this study emphasise that (1) the disruption of blockchain in auditing is in a nascent phase and there is a need for compelling empirical studies and potential for the involvement of practitioners; (2) there may be a need to reconsider audit procedures especially suited for digitalisation and BT adoption; (3) standards, guidelines and training are required to pivot towards and confront the challenge BT will represent for auditing; and (4) there are two sides to the BT coin for auditing, enthusiasm about the potential and risk upon implementation. These practical implications can also be seen as a template for future research in a quest to align theory and practice. ORIGINALITY/VALUE : The authors’ SLR facilitates the identification of research areas and implications, forming a useful baseline for practitioners, professionals and academics, as they draft the state of the art on the disruption of blockchain in auditing, highlighting how BT is changing auditing activities and traditions.
• Summarizing Qualitative Behavior from Measurements of NonlinearsCircuits
• Compliance and Force Control for Computer Controlled Manipulators
• Learning from Ambiguity
• Understanding Simple Picture Programs
• The Role of Fixation and Visual Attention in Object Recognition