M.Comm. / The study is an examination of current practices with regard to financial reporting to employees. International developments and disclosure requirements are examined at the outset. Generally Accepted Accounting Practice in South Africa, like in most other countries of the world, does not require disclosure of financial information to employees. The study clearly showed that employees do have a need for financial information and that this need deserves to be addressed, while taking the skills levels of the South African labour force into consideration. The study suggests a reporting framework geared to the specific needs of the employee as one of the many users of financial information. It is suggested that the value-added statement and employment report be part of reporting to the employees of a company. The value-added statement reports on income earned by a widely defined group of people, whereas the income statement reports on income earned for the shareholders. The value-added statement quantifies value added to the organisation by employees of the organisation. The employment report enables employees to measure returns and risks within their employer organisation in order to evaluate expectations regarding years of service, for example. The practical implications of such a reporting framework are considered. Various benefits and disadvantages of the value added statement and employment report are examined. The writer looks at the employee report of Alusaf Limited and evaluates the report given the information needs of employees. South Africa has a huge labour force to utilise and therefore each organisation should strive to meet the reasonable information needs of labour in South Africa. An honest effort to disclose relevant information to employees will be a positive step in creating better relationships with labour considering the volatile labour relations in South Africa during recent years. At the end of the study the writer comes to the following conclusions: • Employees with their specific information needs, as AC 000 defined users of financial statements, should be recognised. • The different competency levels of employees should be considered when publishing an employee report. • There are advantages for both companies and employees when publishing financial information to employees. • The value-added statement and employment report will contribute to the information needs of employees being met. • There are companies in South Africa who are concerned about the information needs of their employees. • It is no longer a matter of acting politically correct, it is essential for companies in South Africa to publish financial information for their employees.

The traditional focus of financial reporting has been on meeting the needs of investors and creditors. However, meeting the needs of other users of financial reports, particularly the employees, cannot be ignored. Employee reporting has therefore evolved as a form of reporting which meets the needs of employees for information about the enterprise for which they work. In South Africa, this is a particularly pertinent topic as a result of recent developments which highlight the need to provide other users with information and emphasize the rights of employees. Furthermore, companies in South Africa are producing employee reports although there is no guidance by any regulatory bodies as to the form and contents of such reports. This study examines the desirability of employee reporting in South Africa with emphasis on the theoretical background to the subject, and the attitudes of employers and public accountants towards the desirability of employee reporting, its form and contents, and public accountant involvement with published employee reports. After analysis, it was concluded: (1) There is a need for employee reporting. (2) Although the average response provided support for a separate employee report issued annually as the most desirable form of employee reporting, employers preferred regular meetings as the form of employee reporting. (3) Public accountant involvement with published employee reports is undesirable. (4) More research is needed. These conclusions support the following recommendations. (1) SAICA should show support for the disclosures required by The King report on corporate governance. (2) SAICA should re-instate the Employee Report Award. (3) The communication role of employee reporting should be emphasized. (4) There should be no regulatory interference with the form of employee reporting at the moment. / Financial Accounting / D. Comm. (Accounting)

The traditional focus of financial reporting has been on meeting the needs of investors and creditors. However, meeting the needs of other users of financial reports, particularly the employees, cannot be ignored. Employee reporting has therefore evolved as a form of reporting which meets the needs of employees for information about the enterprise for which they work. In South Africa, this is a particularly pertinent topic as a result of recent developments which highlight the need to provide other users with information and emphasize the rights of employees. Furthermore, companies in South Africa are producing employee reports although there is no guidance by any regulatory bodies as to the form and contents of such reports. This study examines the desirability of employee reporting in South Africa with emphasis on the theoretical background to the subject, and the attitudes of employers and public accountants towards the desirability of employee reporting, its form and contents, and public accountant involvement with published employee reports. After analysis, it was concluded: (1) There is a need for employee reporting. (2) Although the average response provided support for a separate employee report issued annually as the most desirable form of employee reporting, employers preferred regular meetings as the form of employee reporting. (3) Public accountant involvement with published employee reports is undesirable. (4) More research is needed. These conclusions support the following recommendations. (1) SAICA should show support for the disclosures required by The King report on corporate governance. (2) SAICA should re-instate the Employee Report Award. (3) The communication role of employee reporting should be emphasized. (4) There should be no regulatory interference with the form of employee reporting at the moment. / Financial Accounting / D. Comm. (Accounting)