Gidemy Elibray

Items

• How to communicate and use accounting to ensure buy-in from stakeholders : lessons for organizations from governments' COVID-19 strategies
  PURPOSE : The purpose of this paper is to understand how communication strategies and the use of numbers can ensure the buy-in and cooperation of stakeholders. DESIGN/METHODOLOGY/APPROACH : Drawing on legitimacy theory, this study analysis documents regarding the communication strategies of New Zealand (NZ)'s Prime Minster, Jacinda Ardern, during the COVID-19 pandemic, in order to extract lessons for organizations. The authors contrast Ardern's communications with those of Donald Trump, the President of the United States (US), as evidence that leaders do not necessarily follow these strategies. FINDINGS : The findings show that clear, consistent and credible communications, backed up by open access to the numerical data that underlie the decisions, ensure that these decisions are seen as legitimate, ensure that citizens/stakeholders feel leaders are accountable and believe in the necessity of measures taken and that they conform to the guidelines and rules. By contrast, the strategy of attempting to withhold information, blaming others, refusing to acknowledge that there are problems and refusing to address problems lead to non-conformance by citizens/stakeholders. Business leaders could apply these lessons to the management of crises in their organizations to ensure buy-in from employees and other stakeholders. Leaders and organizations that follow these communication strategies can emerge in a stronger position than before the crisis. RESEARCH LIMITATIONS/IMPLICATIONS : This paper develops a theoretical framework of strategies aimed at maintaining and disrupting legitimacy among key audiences, which can be used in future research. PRACTICAL IMPLICATIONS : This paper highlighting how organizations and organizational leaders can best communicate with stakeholders using accounting, thus coming across as being accountable during crisis times. SOCIAL IMPLICATIONS : The legitimacy maintenance strategies outlined in this paper ensures that stakeholders feel leaders and the organizations they represent hold themselves accountable. ORIGINALITY/VALUE : This paper outlines the lessons that an organization can learn from communication strategies adopted by governments during the COVID-19 crisis. The paper extends legitimacy theory by explicitly acknowledging the ability to disrupt the legitimacy of others and including this in the authors’ theoretical framework.
• World's end do not cross : is this the end of the world as we know it?
  A complete set of financial statements (including comparative figures) now includes the following, presented with equal prominence: 1. a statement of financial position (balance sheet); 2. a statement of comprehensive income (incorporating the income statement) (or separate income statement and statement of comprehensive income) ; 3. a statement of changes in equity; 4. a statement of cash flows (cash flow statement); 5. notes; and 6. a statement of financial position (balance sheet) at the beginning of the earliest comparative period in specific circumstance. The remainder of IAS 1 (2007) has remained largely unchanged. So it may be argued that this is not yet 'the end of the world as we know it! However, with the significant revisions of the IASB Framework underway, along with Phases B and C of the financial statements presentation project the words of TS Elliot come to mind: What we call the beginning is often the end. And to make an end is to make a beginning. The end is where we start from. The revised IAS 1 (2007) will be effective for years commencing on or after 1 January 2009.
• The market for sustainability assurance services : a comprehensive literature review and future avenues for research
  PURPOSE : This paper focuses on the market for sustainability assurance (SA) services. The objectives of this paper are to (1) review academic efforts in the field, highlighting ground covered, (2) provide a comprehensive understanding of the market for this new form of assurance and (3) identify potential avenues for future research. DESIGN/METHODOLOGY/APPROACH : These objectives were met through a review of 50 academic journal articles identified as relevant to the SA field. FINDINGS : SA is a voluntary exercise in most jurisdictions and engagements are structured to meet the needs (demands) of the market and the capabilities (supply) of assurance providers. This has given rise to a diverse landscape with engagements of differing scopes and objectives. From a demand-side, the literature reveals a number of drivers (both at a macro and micro-level) and inhibitors for SA services. From a supply-side, the literature sheds light on the assurance providers operating in the market and the standards they use when undertaking SA services. These practitioners include accountants (the big four) who use ISAE3000 and non-accountants who prefer AA1000AS. The review reveals five broad areas which have been the focus of existing studies. Finally, the study identifies seven avenues for future research in the SA field. ORIGINALITY/VALUE : The findings of this paper will prove valuable to practitioners as it will assist them in understanding this new form of assurance. Researchers will benefit from an understanding on ground covered and future avenues for research.
• Environmental reporting in South Africa from 1994 to 1999 : a research note
  The content of the annual reports of listed South African mining companies from 1994 to 1999 was analysed to determine how many disclose certain environmental information. This number, expressed as a percentage, was compared with the corresponding percentage disclosure among the Financial Mail Top 100 industrial companies for the same years. A greater number of mining companies, when compared to other large companies, disclose environmental information. This finding is consistent with legitimacy, which is the notion that an organisation will not continue to prosper if its aims and methods are in conflict with that of society. Mining companies have a greater need to legitimise their operations by means of environmental disclosure, because their environmental impact is extensive and obvious.
• Congress update
  Toward the end of October 1997 two important Accounting congresses took place in Paris, France. The first congress, the 8th World Congress of the International Association for Accounting Education and Research (IAAER), was held from 23-25 October 1997 at the Paris School of Management. The IAAER is the world body that represents the interests of Accounting educators and researchers. The theme of the congress was "The Changing World of Accounting: Global and Regional Issues." Given the rapid social, political, technological and economic changes occurring in all parts of the world, it was felt that accounting educators should come together to share their views on how accounting education in their country and/ or part of the world is or should be responding to change. The congress was attended by approximately 700 delegates and nearly 200 papers, of varying quality, were presented in plenary, parallel and panel sessions and in a research forum. The incoming president of the IAAER, Prof Bel Needles from De Paul University, Chicago, said in his closing address that the shorter term goals of the Association are to pursue closer relations with the International Federation of Accountants (IFAC) and the International Accounting Standards Committee (IASC), to draft a discussion paper on ethics and to improve communication between Accounting educators world-wide through the use of technology.
• Red flagging as an indicator of financial statement fraud : the perspective of investors and lenders
  There is increasing international concern about the escalation of fraud and, in particular, financial statement fraud. Detecting financial statement fraud and proving such fraud remains an elusive goal. Red flagging is an early warning system that has been used by auditors to determine the probability of financial statement fraud. The purpose of this research project was to survey investors and lenders in South Africa on their use of red flags and to obtain their opinions on the relative importance of individual red flags. A questionnaire was sent to banks that are registered with the Registrar of Banks (representative of lenders) and to portfolio managers registered with the Financial Services Board (representative of investors). The research findings indicate that lenders and investors in South Africa appear to be aware of the benefits of red flagging as an early warning system. A structured approach (questionnaires / checklists) in using them is to be lacking at present. Respondents rated all red flags in the questionnaire as being important. No distinction was discernable among the different categories that were based on the nature of red flags.
• How sustainability assurance engagement scopes are determined, and its impact on capture and credibility enhancement
  PURPOSE : The purpose of this paper is to examine how sustainability assurance providers’ (SAPs) promotion of sustainability assurance influences the scope of engagements, its implications for professional and managerial capture and the ability of sustainability assurance to promote credible reporting. DESIGN/METHODOLOGY/APPROACH : The authors conducted in-depth interviews with sustainability reporting managers (SRMs) and SAPs in Australia and New Zealand, using an institutional work lens to focus the analysis. FINDINGS : At the start of a new assurance engagement, SAPs offer pre-assurance and flexible assurance scopes, allowing them to recruit clients on narrow-scoped engagements. These narrow-scoped engagements focus on disclosed content and limit SAPs’ ability to add value and enhance credibility. During assurance engagements, SAPs educate managers and encourage changing the norms underlying sustainability reporting. At the end of the assurance engagement, SAPs provide a management report demonstrating added-value of assurance and encouraging clients broader-scoped engagements. However, with each assurance engagement, the recommendations offer diminishing returns, often leading managers to question the value of broad-scoped engagements and to consider narrowing the scope to realize savings. Under these conditions, client pressure (potentially managerial capture) along with practitioners’ desires to grow assurance income (potentially professional capture) can affect SAPs’ independence and the quality of their assurance work. PRACTICAL IMPLICATIONS : The study implies that regulation mandating the scope of engagements may be called for. ORIGINALITY/VALUE : The authors contribute to the research literature in several ways. First, the findings show how professional and managerial capture occurs before, during and at the end of the assurance process. The authors highlight how perceived value addition from sustainability assurance diminishes over time and how this impacts the scope of engagements (with implications for SAPs independence and the quality of assurance work). The authors show these findings in a table, clarifying the complicated interrelationships. Second, the authors contribute to theory by identifying a new form of institutional work. Third, unlike previous studies focused on SAPs, the authors provide insights from the perspectives of both SAPs and SRMs.
• Verslagdoening en openbaarmaking van navorsings- en ontwikkelingskoste in die finansiële state van Suid-Afrikaanse publieke maatskappye
  In a rapidly changing business environment, successful enterprises are becoming more innovative and increasing resources are allocated to research and development of new ideas, products, processes, services and systems. Consequently, the disclosure of information on research and development costs in the financial statements of enterprises is becoming more important to the users of these statements. The aim of this study is to establish the extent to which South African listed companies disclose information on research and development costs in accordance with generally accepted accounting practice in their financial statements. The report of the Foundation for Research Development (1997) on, Innovation Patterns in South African Manufacturing Firms, is used to identify the South African listed companies that are involved in research and development. The information in this report is compared to the financial statements of the selected companies for the financial years ending from 1994 to 1997. The study found that the financial statements of the companies in the sample in 1994 did not provide the information on research and development costs required by AC122. In subsequent years (1995-1997) the companies disclosed more of the information on research and development costs required by the statement. Only one company in the sample actually capitalised development costs.
• Differences in students’ reading comprehension of international financial reporting standards : a South African case
  This study explores differences in students’ reading comprehension of International Financial Reporting Standards (IFRS) in a South African financial reporting class with a heterogeneous student cohort. Statistically significant differences were identified for prior academic performance, language of instruction, first language and enrolment in the Thuthuka programme. Where students, in a heterogeneous financial reporting class, require additional interventions to develop their reading comprehension, instructors may need to consider implementing differentiated instruction. Although this study considers South African students, the results may be of interest in other multicultural or multilingual environments, particularly where students also have diverse traits and backgrounds and have to comprehend learning material in a second language.
• Can nudging with descriptive norms help internal auditors stop runaway information systems projects?
  Although internal auditors are expected to play an important role in corporate governance, they are not always effective in bringing their message to management’s attention when they observe that a risky course of action is being taken that could harm the organization. When information systems projects go awry, for example, internal auditors often struggle to get managers to listen to their warnings. Instead, managers may turn a deaf ear to the auditor’s warnings. In this paper, we build on the idea that internal auditors can follow an approach that combines two elements to reduce this so-called deaf effect: (1) the auditor can apply communication techniques to more effectively deliver the message, and (2) the internal auditor can develop a relationship with the manager such that the auditor is viewed as a ‘partner’ rather than an ‘opponent.’ Following a mixed method approach, we examined how ‘nudging with a descriptive norm’ as a communication technique could help internal auditors to reduce the deaf effect and how this can be understood in the context of the auditor-manager relationship (AMR). We conducted two experiments showing consistent evidence that both (1) nudging with a descriptive norm and (2) AMR, had significant indirect effects on the deaf effect that were mediated through perceived social norms. A complementary series of ten interviews with Chief Audit Executives shed further light on how internal auditors could apply ‘nudging with a descriptive norm’ as a communication technique, and what should be considered, including the auditor-manager relationship. Implications for both internal audit research and practice are discussed.
• Integrated reporting : perspectives of corporate report preparers and other stakeholders
  PURPOSE : This paper aims to explore the perspectives of corporate report preparers and other stakeholders on integrated reporting (IR) in a major Southeast Asian economy. DESIGN/METHODOLOGY/APPROACH : A survey is used to explore perspectives on IR. FINDINGS : There is a limited level of knowledge regarding IR, but a high level of interest. Corporate report preparers paradoxically state that they can see the benefits of IR, yet they are reluctant to implement it. PRACTICAL IMPLICATIONS : Changes to university curricula, training sessions, seminars and conferences may be needed to disseminate information regarding IR. SOCIAL IMPLICATIONS : IR implementation may be stymied by the low levels of knowledge in Southeast Asia and hence lack of demand from stakeholders. High-quality reporting generally supports capital flows into a region and thus influences economic and social well-being. The integrated financial and non-financial information needs of stakeholders thus have an indirect impact on society. ORIGINALITY/VALUE : Southeast Asia is an economic powerhouse and home to hundreds of millions of people. It is important to understand the potential for IR in this region. This is the first survey of its kind to explore these matters.
• The development of Messenger bots for teaching and learning and accounting students' experience of the use thereof
  This study reports on the development of two Messenger bots, designed to facilitate the learning of introductory and intermediate accounting. The Messenger bots were developed using a visual development environment that requires no coding knowledge. A thick description of the development of the Messenger bots is provided to encourage replication. It is submitted that instructors, rather than programmers, should take ownership of developing Messenger bots for teaching and learning. Preliminary exploration of the students’ satisfaction yielded positive results. Suggestions are made for specific applications of Messenger bots in teaching and learning and for further research exploring the use of Messenger bots in teaching and learning.
• The why, what, where and how of corporate environmental reporting
  Although environmental reporting is not compulsory in this country, many companies and other organisations in South Africa disclose information regarding the natural environment. Organisations may therefore decide for themselves whether or not to report such information. As a result of the lack of guidance, each organisation must decide itself whether to report, what to report and where to report. This paper examines several aspects of environmental reporting from a business perspective. These aspects include the advantages of environmental reporting and the types of environmental information that could or should be reported. The advantages and disadvantages of reporting environmental information in the annual report and in a separate report are also discussed. Finally, the paper provides some guidelines on the implementation and management of an environmental information system.
• Telephonic qualitative research interviews : when to consider them and how to do them
  PURPOSE - The aims of this study are to review the literature examining the arguments for and against the telephonic qualitative research interviews, to develop criteria for assessing when the use of the telephone is suitable in qualitative research and if suitable to offer detailed strategies for the effective use of this data collection instrument. DESIGN/METHODOLOGY/APPROACH - The study is a thematic analysis of the literature, informed by the researchers' experiences using the telephone, computer-based audio and face-to-face interviews for an accounting research project involving 50 semi-structured interviews with managers. FINDINGS - The study identifies five criteria to determine the suitability of using the telephone in qualitative research interviews. In addition, the study offers a set of detailed strategies on what to do before, during and after a telephonic qualitative research interview. RESEARCH LIMITATIONS/IMPLICATIONS - The study can assist qualitative researchers in deciding when to use the telephone and how to use it effectively. ORIGINALITY/VALUE - The study builds on the limited prior research and provides a more complete list of strategies on the effective use of the telephone in qualitative social sciences research. These strategies are a synthesis of existing studies and observations drawn from the author's study, which examines the work of organisational managers. In comparison, prior studies have been based on research projects that explored sensitive personal issues and emotive experiences not always related to managerial work.
• Pre-incorporation contracts revisited
  Some confusion still exists with Accountants as to the correct accounting treatment for pre-incorporation contracts. An attempt is made in this article to present a framework of the legal positions and accounting treatments of all practical situations encountered with pre-incorporation contracts.
• Financial statement comparability in the extractive industry
  PURPOSE : This paper aims to investigate financial statement comparability in the extractive industry. This paper focuses on the extractive industry because International Financial Reporting Standards (IFRS) contain limited guidance on the accounting treatment for exploration and evaluation (E&E) costs and IFRS 6 – Exploration for and Evaluation of Mineral Resources allowed firms to continue with existing divergent accounting treatment of E&E costs. DESIGN/METHODOLOGY/APPROACH : The authors use data from Australia, a country that adopted IFRS in 2005 with a large extractive industry. They also compare changes in cross-country comparability around the IFRS adoption date between Australian firms and adopters relative to Australian firms and non-adopters to better isolate changes in comparability that are attributable to the adoption of IFRS from other sources that are not related to the adoption of IFRS. The authors measure comparability consistent with De Franco et al. (2011) where financial statements are comparable when two firms produce similar accounting amounts for similar economic events. FINDINGS : For non-extractive industry firms, the authors find the comparability of financial statements of Australian firms increased with other adopters and that this increase was relatively greater than the increase with non-adopter firms. This evidence is consistent with comparability benefits associated with the adoption of IFRS. However, for extractive industry firms, the authors do not find a significantly greater increase in the comparability of financial statements of Australian firms with adopters relative to the increase with non-adopters, suggesting that the increase is likely not associated with the adoption of IFRS. In additional analysis, they find that following IFRS adoption non-extractive Australian firms have greater within-country comparability relative to extractive Australian firms, while there was no difference in the pre-adoption period. ORIGINALITY/VALUE : The evidence suggests that the divergent practices for E&E costs under IFRS 6 and the lack of an accounting standard that deals with matters relating to the extractive industry hinder the comparability of financial statements in this industry.
• Towards a taxonomy of accounting
  This article was written by Carolina Koornhof before she joined the University of Pretoria.
• A critical view of the allocation of revenue to provincial governments
  This article investigates the principles used in the allocation of revenue resources to the nine provincial governments based on the recommendations of the Financial and Fiscal Commission. The article identifies the aspects that are taken into account in the allocation process. Problems with the current formula used for the allocation of revenue are highlighted. New legislation regarding the budgetary process is examined to determine if it adresses the problems experienced at the moment.
• The effect of attribution on perceptions of managers' performance
  Managers can influence the evaluation of their performance by advancing various reasons for or making attributions regarding their financial achievement or the financial achievement of their divisions. In this study, an experimental design is used to determine the effect that the advancing of controllable reasons versus uncontrollable reasons, of which evaluators are either aware or not aware, has on the evaluation of managers' performance in conditions in which they had recorded financial results that are lower or higher than the budgeted figures. The experiment reveals that performance evaluations are higher when variances are explained by means of controllable reasons in the abovebudget setting, whereas higher evaluations result in the below-budget setting when variances are explained by means of uncontrollable reasons. Furthermore, the evaluator's prior knowledge of these reasons results in a difference in the performance evaluation rating. Specifically, known reasons result in higher manager evaluation ratings. The experiment reveals that managers that record above-budget performance are given higher evaluation ratings than managers that record below-budget performance, even when variances are explained by means of reasons that the managers cannot control. This is known as the outcome effect. However, the findings indicate that the outcome effect is smaller when the evaluator has independent knowledge of the reason(s) advanced.
• Differences in accounting students’ perceptions of their development of professional skills : a South African case
  PURPOSE : The purpose of this paper is to explore differences in South African accounting students’ perceptions of professional skills developed in an undergraduate accounting program. South Africa has a history of socio-economic inequality and racial injustice, leading to factors outside the classroom impacting educational outcomes. In particular, South African classes are heterogeneous, reflecting a diversity of race and language groups and students from differing schooling backgrounds. These differences necessitate differentiated instruction. DESIGN/METHODOLOGY/APPROACH : To explore for differences in perceptions, data were collected via questionnaires and differences between demographic variables such as school, race and language were considered, while controlling for gender. A focus group was also hosted to further explore findings. FINDINGS : Students from better quality schools agreed less strongly than those from poorer quality schools that the education program developed their professional skills. Students from better quality schools may have developed some of the professional skills during their schooling, requiring less to be developed at university. African students, though, agreed less strongly than white students from similar quality schools that they had developed professional skills. A focus group suggested that African students place less emphasis on professional skills development than on technical skills, given their lack of exposure to professional skills through mentors (parents, teachers, etc.) who never developed professional skills during their own compromised education under Apartheid. ORIGINALITY/VALUE : Understanding the differences in the perceptions of professional skill development in a heterogeneous classroom can assist instructors in adopting differentiated instruction approaches to enable all students to develop professional skills. It could also assist future employers of these graduates to differentiate their development strategies during workplace training.
• To hedge account or not to hedge account? (Part 2)
  In terms of AC 208 a financial instrument can be used either for hedging (non-trading) or for speculative (trading) purposes. The substance of a hedging instrument is, however, not evident from or determined by its form but is based partly on management's intent.
• The tax knowledge of South African trainee accountants : a survey of the perceptions of training officers in public practice
  This empirically-based, exploratory study outlines the framework of chartered accountants’ tax education and training in South Africa and focuses on training officers’ perceptions of the existing tax knowledge of trainee accountants when entering into a training contract after completing their university qualification. The study identified the respondents’ satisfaction with the performance by ‘entry-level’ trainee accountants of their duties. The results indicated that, although the educational background of trainee accountants was for the most part adequate, these trainee accountants were not sufficiently able to perform their duties when entering into training. The implication of this study is that the syllabus setters and educators should review the practicality of the current tax syllabi’s content for the education and training of aspirant chartered accountants in South Africa.
• Carbon emissions management control systems : field study evidence
  The paper examines the types and role of carbon management control systems by analysing in-depth interviews undertaken with 38 individuals from 30 organizations that use carbon management control systems. The paper identifies the different types of carbon controls, and the internal and external uses and objectives of controls. Carbon controls can be used to achieve compliance or improve performance, and organizations can focus on different objectives at different times. The findings suggest that emissions reductions do not occur without absolute (as opposed to intensity) reduction targets, management support, and resource allocation for carbon management. The findings further suggest that firms that want to improve performance or manage compliance costs effectively will require the integration of carbon controls into operational and strategic processes. A framework is developed that managers and researchers can use as an implementation guide or a research framework. The framework highlights three elements that were found to be critical to ensure control effectiveness, namely managerial communication, quality of information, and employee perceptions. The evidence suggests that communication of carbon information through appropriate channels and language, as well as high quality of carbon information are essential to ensure positive employee perceptions and buy-in, which will contribute to effective carbon reduction.
• Implementing the accrual basis - a step-by-step approach
  In section 40(1)b of the Public Finance Management Act, No. 1 of 1999 (as amended), accounting officers of departments, trading entities or constitutional institutions are required to prepare financial statements for each financial year in accordance with generally recognised accounting practice (GRAP). In terms of section 87 of the Act, an Accounting Standards Board (ASB) should be established in South Africa which, in terms of section 89(1), should set GRAP standards. In setting GRAP standards, the ASB should in terms of section 89(2)a follow both local and international best accounting practice. From recent literature it would appear that international best practice in the public sector is the accrual basis of accounting and pronouncements by authoritative bodies support this trends.
• Caring for children during COVID-19 : the experiences of South African families with children in middle childhood
  Mini Dissertation (MSW (Play-based intervention))--University of Pretoria, 2023.