This dissertation investigates the implementation of FRS 13 by UK non-financial companies, and assesses the impact of the Standard on both users and preparers of Annual Reports. The investigation involves (i) a content analysis of the reporting practices of companies on their derivatives usage before and after the introduction of FRS 13. in order to ascertain whether the standard had any significant effect on the contents of company financial statements, and (ii) interviews with both the preparers (treasurers) and the users (fund managers) of the information provided under FRS 13, in order to facilitate an understanding of the implications of the standard for their operations. The study focuses in particular on the effects of the increased derivatives-related disclosures for corporate governance structures and accountability relationships The results suggest that the amount of disclosure in company annual reports increased significantly following the introduction of the standard; companies were now disclosing far more about their hedging and risk management activity than they had before. In general, treasurers responded favourably to the standard, and considered the narrative disclosures to be particularly useful. The numerical disclosures were considered to be very detailed and specialised; interviewees thought that users might have difficulty in understanding them. However, the implementation of lAS 39, which will be mandatory for all EU companies from 2005, was causing treasurers far more concern. Many treasurers expected to purchase expensive new systems and establish sophisticated procedures in order to comply with the hedge accounting rules of lAS 39. In general, the institutional investors interviewed expressed similar views to those of the treasurers; they found the narrative parts of the annual reports useful, but agreed that the numerical disc losures were too specialised. The investors thought that the disclosures did improve the corporate governance process and highlighted issues that they wished to raise with their investee companies' management as a result of the information gleaned from the financial statements.

This thesis consists of three self-contained studies on the factors affecting the financial reporting process. The first study investigates the role of reporting incentives in private firms. I observe significant decrease in asset -write-offs after an adverse change in tax treatment of write-offs. This change does not affect any other economic incentive to use accounting discretion and thus permits me to disentangle the tax- minimisation incentive from other incentives including debt contracting, dividends and employee relations that cause the anomalous positive relation between write-offs and profitability. I provide new and complementary evidence that tax incentives play an important role in firms' financial reporting behaviour. The second study examines whether mandatory adoption of IFRS affects the source and cost of debt financing. First, I find that mandatory IFRS adopters more likely issue public debt. Second, I show that IFRS adopters pay lower bond yield spreads but there is no significant effect on loan spreads. My findings are consistent with IFRS enhancing the quality and comparability of accounting information, and suggest that mandatory IFRS adoption is beneficial primarily for bond investors. Finally, I find that the positive effects of IFRS are present only in countries with strong institutions and less harmonised accounting standards. The third study investigates whether mandatory IFRS adoption affects credit relevance of accounting information. First, I find significant increase in credit relevance of mandatory IFRS adopters after the adoption. Second, I show that increase in credit relevance after IFRS adoption is greater for IFRS firms than for matched US \ \ firms, Third, I find that IFRS firms exhibit relatively higher credit relevance compared to US firms in the post-adoption period. Additionally, I show that IFRS effects vary between countries. I interpret higher credit relevance of IFRS-based accounting information relative to local standards as an increase in accounting quality from the debtholders' perspective. '.

This thesis examines whether IFRS adoption improves the usefulness of accounting information in African capital markets. Consistent with the IASB (2010) conceptual framework which focuses on shareholders, I define usefulness as the increase in value relevance of earnings and book value of equity, asymmetric earnings timeliness and conditional conservatism and the predictive ability of earnings and cash flow. I use a relatively large sample of 347 firms listed in five African capital markets namely; Johannesburg, Nairobi, Cairo and Alexandria, Botswana and Casablanca Stock Exchanges. The thesis derives its motivation from the contemporary debate on fair value versus historical cost accounting, illiquidity of African markets and the adoption of IFRS in Africa. Although IFRS is widely adopted in Africa there are relatively few studies examining its usefulness. In Africa, capital markets are relatively small and illiquid (Smith et al., 2002 and Kenny and Moss, 1998), there are no sound IFRS enforcement mechanisms (Daske et al., 2011, Anandarajan and Hasan, 2010, World Bank, 2010a, and Prather-Kinsey, 2006), culture is secretive and conservative (Dahawy et al., 2002 and Gray, 1988) and many accounting systems are based on government or bank capital models of corporate governance (Chamisa, 2000). Since, IFRS characterized by fair value accounting principles requires liquid and active markets for its appropriate use (Ball, 2008) and focuses on market led principles of measurement and disclosures (Walker, 2010) it is unclear how useful it is to market participants in illiquid markets particularly African capital markets. The research objectives are fourfold; to examine whether IFRS increases (i) the information content of earnings and book value of equity as measured through the earnings response coefficient (ERC), the book value response coefficient (BRC) and adjusted R2 (ii) the asymmetric earnings timeliness and conditional conservatism as a measure of stewardship role of management to capital providers, (iii) the predictive ability of earnings and cash flow and (iv) to examine the conditioning roles of culture and legal origin on the above research sub-themes. The results are summarized as follows; (i) IFRS increases the valuation role of book value of equity and overall value relevance but not earnings. These findings are consistent with the IASB (2010) conceptual framework' focus on the statement of financial position rather than the statement of financial performance in financial reporting. The results are also consistent with prior studies such as Hung and Subramanyam (2007) and Francis and Schipper (1999) which document the declining (increasing) value relevance of earnings (book value of equity), (ii) IFRS is incrementally more value relevant in code law than common law countries and (iii) the secretive culture prevalent in African countries is associated with greater BRC (lower ERC) after IFRS Moreover, consistent with prediction, the results indicate that IFRS leads to reduced gains, loss, incremental loss and overall earnings timeliness. Also, common law earnings are timelier (untimely) in recognizing bad news (good news) than code law earnings. However, this asymmetric earnings timeliness decreases after IFRS adoption. Furthermore, the results indicate that a conservative culture is associated with greater (lower) gains (loss and incremental loss) recognition timeliness. In terms of earnings and cash flow predictability, IFRS results in reduced predictive ability of cash flow and earnings. Also, cash flow dominates earnings in predicting future cash flow. Conservative culture is associated with lower (greater) predictive ability of cash flow (earnings). Moreover, results do not support the contention that IFRS increases the predictive ability of earnings and cash flow more in common than code law countries. This is the first comprehensive study examining the decision usefulness (as defined by the IASB conceptual framework, 2010) of IFRS in Africa. The conclusion is that IFRS has not improved financial reporting in Africa.

The increasing complexity of financial reporting requirements, especially accounting standards, leads many countries to consider moving to simpler reporting requirements for small and medium enterprises (SMEs) in order to reduce reporting burdens. In response to such concern, the International Accounting Standards Board (IASB) also released the IFRS for SMEs, an international accounting standard intended for SMEs worldwide. In Thailand, SMEs are required by law to prepare and publish general purpose financial statements for statutory reporting, but the Thai financial reporting framework is complex. Thus, it would be beneficial for Thai SMEs if their reporting burdens were reduced. The IFRS for SMEs might be considered as an alternative set of accounting standards in Thailand, so its suitability to Thai SMEs is worth evaluating. This present study examines SME reporting in Thailand to ascertain its features and to evaluate its costs and benefits to SME stakeholders. Both qualitative and quantitative approaches are adopted in the study. Semi-structured interviews of SMEs, users and other stakeholders are conducted and the data are analysed using Strauss and Corbin’s grounded theory approach. A questionnaire survey of directors or managers of SMEs and a review of SME financial statements are also undertaken. Univariate and multivariate data analysis is carried out with these two data sets. Overall, the interview and survey research concludes that SMEs in Thailand prepare and publish their financial reporting largely in order to meet legal requirements. They rely on their accountants in fulfilling these reporting obligations. For SME directors, costs of reporting are not considered to be an undue burden. Tax authorities, entities’ managements and lenders, in order, are perceived to be the most important users. However, it appears that the financial information in SME financial is unable to meet the needs of these main users. Preparation of financial statements with tax motivation, limited disclosures and out-of-date information are identified as the main weaknesses in SME financial statements. The analysis of SME financial statements shows that: the majority of SMEs engage in simple business transactions and non-compliance with mandatory accounting standards exists among many SMEs. SME stakeholders generally support using simpler accounting standards for SMEs. The IFRS for SMEs seems to be too complicated for many Thai SMEs and inconsistency with tax rules is an issue. The findings of this study are of interest to standard setters and other SME stakeholders in Thailand and other countries. The study also provides implications for SMEs, their accountants and their stakeholders.

Many organisations today are still not making use of Management Accounting tools to assist in providing sustainability information for decision-making and the influence this can have on the financial performance of an organisation. This may have a negative impact on the financial performance of organisations, the result of the number of errors and miscalculations that can occur, including obsolete cost drivers; miscalculated business decisions, inaccurate information and human errors. Without applying Management Accounting tools, managers of organisations may find it difficult to improve the day-to-day operations and to take decisions to enhance the financial performance of their business. In this study, information was collected from interviews to determine whether Management Accounting tools could provide sustainability information for decision-making, and how this would influence the financial performance of an organisation. The research was carried out in organisations listed on the JSE. This study found that Management Accounting tools are important in providing sustainability information for decision-making and in determining how this information influences the financial performance of JSE listed organisations. Furthermore, Management Accounting tools provide strategies that influence decision-making and performance, although decision-making is the responsibility of executives or directors of the organisations. The study also found that Management Accounting tasks are performed by financial managers who focus solely on financial statements and reporting. Hence future research should focus on the importance of devolving Management Accounting roles to financial accountants or managers to enable the organisation to focus on different reports for different outcomes. / Management Accounting / M. Phil. (Management Accounting)

Many organisations today are still not making use of Management Accounting tools to assist in providing sustainability information for decision-making and the influence this can have on the financial performance of an organisation. This may have a negative impact on the financial performance of organisations, the result of the number of errors and miscalculations that can occur, including obsolete cost drivers; miscalculated business decisions, inaccurate information and human errors. Without applying Management Accounting tools, managers of organisations may find it difficult to improve the day-to-day operations and to take decisions to enhance the financial performance of their business. In this study, information was collected from interviews to determine whether Management Accounting tools could provide sustainability information for decision-making, and how this would influence the financial performance of an organisation. The research was carried out in organisations listed on the JSE. This study found that Management Accounting tools are important in providing sustainability information for decision-making and in determining how this information influences the financial performance of JSE listed organisations. Furthermore, Management Accounting tools provide strategies that influence decision-making and performance, although decision-making is the responsibility of executives or directors of the organisations. The study also found that Management Accounting tasks are performed by financial managers who focus solely on financial statements and reporting. Hence future research should focus on the importance of devolving Management Accounting roles to financial accountants or managers to enable the organisation to focus on different reports for different outcomes. / Management Accounting / M. Phil. (Management Accounting)

Text in Afrikaans / The purpose of the research is to compare the quantity and quality of reporting on the employees of companies with the profitability and size of the top 100 companies over a four year period. The research is limited to the availability of quality information on employees in the financial statements of companies. A literature study is followed by an emperical inquiry into a comparison of the reporting on employees with the profitability and size of companies. The results reflect the following: * the quantity and quality of reporting on the employees of companies does not inevitably show an increase; * a significant relationship exist between the size and profitability of companies; * the role of reporting on the employees of companies is significant with regards to profit determination; and * some of the companies performed uniquely with regards to the quantity and quality of reporting on the employees of companies. / Accounting / M.Comm.(Accounting)

Text in Afrikaans / The purpose of the research is to compare the quantity and quality of reporting on the employees of companies with the profitability and size of the top 100 companies over a four year period. The research is limited to the availability of quality information on employees in the financial statements of companies. A literature study is followed by an emperical inquiry into a comparison of the reporting on employees with the profitability and size of companies. The results reflect the following: * the quantity and quality of reporting on the employees of companies does not inevitably show an increase; * a significant relationship exist between the size and profitability of companies; * the role of reporting on the employees of companies is significant with regards to profit determination; and * some of the companies performed uniquely with regards to the quantity and quality of reporting on the employees of companies. / Accounting / M.Comm.(Accounting)