Diese Dissertation umfasst drei Studien über Finanzberichterstattung gemäß International Financial Reporting Standards (IFRS) und Wirtschaftsprüfung. Da die IFRS ein prinzipienbasiertes Standardsystem sind, haben Abschlussersteller beabsichtigte Ermessensspielräume bei der Erstellung ihrer Finanzberichte. Die ersten beiden Studien widmen sich den Fragen, wie genau Abschlussersteller entsprechende Ermessensspielräume ausüben und inwieweit dies von der Wahl des Abschlussprüfers abhängt. Die erste Studie untersucht die Anhangangaben zu Ermessensentscheidungen und Schätzunsicherheiten (gemäß IAS 1). Sie liefert deskriptive Belege für ein insgesamt zunehmendes Niveau der Offenlegung dieser Anhangangaben und dafür, dass das Offenlegungsniveau über verschiedene Abschlussprüfer hinweg variiert. Inspiriert durch die Ergebnisse der ersten Studie widmet sich die zweite Studie der Frage, welche Arten von Abschlussprüfern (d.h. dominierende im Vergleich zu nicht dominierenden Abschlussprüfern) Unternehmen dazu motivieren, (mehr) relevante Angaben zu den erwarteten Auswirkungen der erstmaligen Anwendung des neuen IFRS 16 „Leasingverhältnisse“ im Erstanwendungsjahr offenzulegen. Die Ergebnisse deuten darauf hin, dass Mandanten dominierender Abschlussprüfer weniger standardisierte Angaben („boilerplate disclosures“) machen und der Zusammenhang zwischen der Leasingintensität und dem Detaillierungsgrad der Angaben bei diesen Mandanten stärker ist. Die dritte Studie nimmt die Ergebnisse der ersten beiden Studien zum Anlass, die Struktur des Prüfungsmarktes zu untersuchen. Der Fokus liegt hierbei auf der Entwicklung der Konzentration des Abschlussprüfermarktes in Großbritannien und Deutschland rund um eine regulatorische Änderung auf EU-Ebene, die neue Prüfungsanforderungen mit sich bringt, einschließlich der obligatorischen regelmäßigen Rotation von Prüfungsgesellschaften. Während die Ergebnisse auf einen etwa gleichstarken Rückgang der Konzentration der Prüfungsmärkte in beiden Ländern hindeuten, zeigen weitere statistische Tests, dass dieser Rückgang auf nationale Besonderheiten zurückzuführen ist. / This dissertation comprises three papers on financial reporting and auditing. The first two papers examine whether the extent to which the principles-based character of International Financial Reporting Standards (IFRS) allows management to exercise judgement in the preparation of firms’ disclosures is contingent on auditor-type. The first paper explores judgment and estimation uncertainty disclosures (IAS 1) and provides descriptive evidence on an overall increasing trend of disclosure levels and that disclosure levels vary in the cross-section, among other things, by auditor. Inspired by that, the second paper goes a step further and emphasises on the question what type of auditors (i.e., dominant in comparison to non-dominant auditors) motivate firms to provide (more) relevant disclosures on how they expect IFRS 16 – a new standard on leasing – to affect their financial statements in the period of initial application. Results suggest that clients of dominant auditors use less boilerplate disclosures and that the association between leasing intensity and disclosure detail is stronger for those clients. Due to the results of both papers suggesting that the auditor choice matters when firms face judgement in the preparation of their disclosures, the (development of the) audit market structure underlying certain regulations becomes relevant. Thus, the third paper takes these findings of the first two papers as motivation to examine the audit market concentration in the UK and Germany around a regulatory change at the EU level that entails new audit requirements including mandatory audit firm rotation on a regular basis. While aggregate statistics suggest a decrease in market concentration of similar size in both countries, further tests reveal that these decreases are driven by national peculiarities.

Corporate reporting has changed from the traditional form of reporting which covered financial information only to the modern form of reporting called integrated reporting which covers, financial, corporate governance and sustainability information. The levels of corporate disclosure among corporate entities within any country and between countries are thus likely to have been affected by this change. Motivated by the IMF/World Bank (2006) that observed that corporate reporting improved in Botswana during the previous five years, without indicating what the actual level was or how it compares with that of other countries; this study sought to determine the actual level of corporate disclosure of two samples of companies: 23 companies listed on the Botswana Stock Exchange (BSE) and the top 40 companies (by market capitalisation) that are listed on the Johannesburg Stock Exchange (JSE). The study also shows how the two levels of corporate disclosure compare. This study is qualitative and descriptive by design; and involves analysing the content of the corporate annual report of each company in a sample using a corporate disclosure checklist; and determining the level of corporate disclosure for each sample of companies. The process ends with a comparative analysis of the levels of corporate disclosure of the companies from the two samples. Consistent with the IMF/World Bank report, the study revealed that the level of corporate disclosure in the BSE sample was low but increasing. However, the increase in the level of corporate disclosure varied from sector to sector and the specific information items. The study also showed that integrated reporting was not practised at all by the companies in the BSE sample. Comparatively, companies in the JSE sample had a higher level of corporate disclosure than that of companies in the BSE sample; and the rate of increase was much higher than that in the BSE sample. The study further found integrated reporting practiced in the entire JSE sample, although at different levels. xi This study also noted that although in principle it is sensible to benchmark from the best, other fundamental factors need to be considered before carrying out the exercise. Furthermore, the study indicated that the prevalent low level of corporate disclosure in the BSE sample was evidence that the corporate reporting environment in which the BSE lies was not conducive for the theories of corporate disclosure to fully explain corporate disclosure. A number of recommendations were made including establishing corporate disclosure indices and creation of a corporate environment in which all the theories discussed in the study can explain corporate disclosure. This study contributes to the literature on cross-country corporate disclosure and cautions companies with low levels of corporate disclosure not to embark on benchmarking without creating an environment conducive for corporate reporting. The study also offers useful insights to policymakers in Botswana and South Africa; and stimulates further research on cross-country corporate disclosure. The academia too will be able to identify areas for further research from this study. / Business Management / M. Com. (Accounting)

Fair value accounting of biological assets in the public sector was introduced with the adoption of the public sector specific accounting standard, Generally Recognised Accounting Practice (GRAP) 101. The public sector currently uses different bases of accounting: public entities and municipalities must use accrual accounting and apply the principles of GRAP, while government departments report on the modified cash basis. Furthermore, public entities do not consistently apply the requirements of GRAP 101. This lack of a uniform basis of accounting has a negative effect on the comparability of financial information. This study identified the challenges facing the public sector in the application of GRAP 101, specifically regarding the fair value accounting of biological assets. The successful implementation of GRAP 101 by a public entity, AsgiSA-EC, was used as a case study to clarify the fair value accounting challenges in the reporting of biological assets in the sector. / Business Management / M. Accounting Science

Corporate reporting has changed from the traditional form of reporting which covered financial information only to the modern form of reporting called integrated reporting which covers, financial, corporate governance and sustainability information. The levels of corporate disclosure among corporate entities within any country and between countries are thus likely to have been affected by this change. Motivated by the IMF/World Bank (2006) that observed that corporate reporting improved in Botswana during the previous five years, without indicating what the actual level was or how it compares with that of other countries; this study sought to determine the actual level of corporate disclosure of two samples of companies: 23 companies listed on the Botswana Stock Exchange (BSE) and the top 40 companies (by market capitalisation) that are listed on the Johannesburg Stock Exchange (JSE). The study also shows how the two levels of corporate disclosure compare. This study is qualitative and descriptive by design; and involves analysing the content of the corporate annual report of each company in a sample using a corporate disclosure checklist; and determining the level of corporate disclosure for each sample of companies. The process ends with a comparative analysis of the levels of corporate disclosure of the companies from the two samples. Consistent with the IMF/World Bank report, the study revealed that the level of corporate disclosure in the BSE sample was low but increasing. However, the increase in the level of corporate disclosure varied from sector to sector and the specific information items. The study also showed that integrated reporting was not practised at all by the companies in the BSE sample. Comparatively, companies in the JSE sample had a higher level of corporate disclosure than that of companies in the BSE sample; and the rate of increase was much higher than that in the BSE sample. The study further found integrated reporting practiced in the entire JSE sample, although at different levels. xi This study also noted that although in principle it is sensible to benchmark from the best, other fundamental factors need to be considered before carrying out the exercise. Furthermore, the study indicated that the prevalent low level of corporate disclosure in the BSE sample was evidence that the corporate reporting environment in which the BSE lies was not conducive for the theories of corporate disclosure to fully explain corporate disclosure. A number of recommendations were made including establishing corporate disclosure indices and creation of a corporate environment in which all the theories discussed in the study can explain corporate disclosure. This study contributes to the literature on cross-country corporate disclosure and cautions companies with low levels of corporate disclosure not to embark on benchmarking without creating an environment conducive for corporate reporting. The study also offers useful insights to policymakers in Botswana and South Africa; and stimulates further research on cross-country corporate disclosure. The academia too will be able to identify areas for further research from this study. / Business Management / M. Com. (Accounting)

Die vorliegende kumulative Doktorarbeit umfasst drei Arbeiten aus dem Bereich der empirischen Rechnungslegungsforschung. Die erste Arbeit untersucht die Rolle persönlicher Eigenschaften von Rechnungslegungsstandardsetzern bei der Entwicklung der Internationalen Rechnungslegungsstandards IFRS. Sie dokumentiert, dass in den IFRS insgesamt ein Rückgang der Bedeutung von Prinzipien gegenüber Regeln sowie ein Anstieg der Bedeutung des beizulegenden Zeitwerts im Zeitablauf zu verzeichnen sind. Zwischen Änderungen von IFRS-Eigenschaften sowie beruflichen und kulturellen Eigenschaften von Mitgliedern des International Accounting Standards Board (IASB) wird ein Zusammenhang festgestellt. Die zweite Arbeit widmet sich Ursachen und Folgen fehlerhafter Finanzberichterstattung im Rahmen des deutschen Systems der Durchsetzung von Rechnungslegungsregeln. Sie findet systematische Unterschiede in der Unternehmensführung von Unternehmen, bei denen fehlerhafte Finanzberichte festgestellt werden, gegenüber einer Kontrollgruppe. Weitere Ergebnisse lassen die Vermutung zu, dass die Aufdeckung fehlerhafter Finanzberichte Verbesserungen in der unternehmensspezifischen Aufsicht über den Rechnungslegungsprozess auslösen könnte. Die dritte Arbeit nutzt umfangreiche Befragungsergebnisse deutscher Privatanleger zur Untersuchung der Ursachen ihres Unternehmensüberwachungsverhaltens. Demnach üben Anleger, die ein geringeres Vertrauen in andere Anspruchsgruppen eines Unternehmens haben, zugleich eine geringere Unternehmensüberwachung aus. Darüber hinaus dokumentiert die Arbeit, dass Vertrauen und Unternehmensüberwachung in einem Zusammenhang mit dem Ausmaß der Teilnahme am Aktienmarkt und dem Bildungshintergrund der Anleger stehen. / This cumulative doctoral thesis consists of three papers within the field of empirical financial accounting research. The first paper examines the role of personal characteristics of accounting standard setters in the development of the International Financial Reporting Standards (IFRS). It documents that the full set of IFRS exhibited a decrease in the importance of principles relative to rules and an increase in its fair value orientation over time. Changes in IFRS properties are found to be associated with the professional and cultural background of International Accounting Standards Board (IASB) members. The second paper investigates determinants and consequences of erroneous financial reporting under the German financial reporting enforcement regime. The corporate governance of firms detected with erroneous financial reporting is found to differ systematically from that of control firms. Further results suggest that error detection might trigger improvements in firm-level accounting oversight. The third paper uses large-scale survey evidence from German individual investors to explore the determinants of their monitoring behavior. Investors who are less trusting in their fellow stakeholders are found to engage in less monitoring. Furthermore, trust and monitoring are documented to be associated with the stock market exposure and the educational background of investors.

There is a relation between financial analysis of a company and the economic and legal environment of its registered place of business. The financial analysis is based on the financial reports reflecting the requirements of the national or supranational system of financial accounting. The creation of the single internal market of the European Union leads to harmonization of the financial accounting and reporting of the individual member states. The companies residing in the Czech Republic are obliged to make out the annual closure of accounts in compliance with the Czech Accounting Standards that reflect the requirements of the 4th directive of the European Communities. Under particular circumstances they also make out the closure of accounts in compliance with the International Accounting Standards IAS/IFRS reflecting the requirements of the International Standards Regulation adopted by The European Communities. Among such companies there belongs a subsidiary, T-Mobile Czech Republic, of which the financial analysis can be carried out based on the two different accounting standards. Finding out to what extent the conclusions of the analyses differ is the main task of the diploma thesis.

Governments are becoming increasingly aware of SMEs as economical role players. As a result many initiatives were introduced to address the unique challenges of the SME sector. One of these initiatives was the introduction of a global accounting framework for SMEs by the International Accounting Standards Board entitled the IFRS for SMEs. South Africa became the first country to formally adopt the contents thereof as the Statement of GAAP for SMEs. The adoption of a formal accounting framework by SMEs is however challenged by, amongst other factors, the informal nature of SMEs, limited global focus, the involvement of owner–managers and different classifications of SMEs worldwide. Owing to these unique attributes it is possible that SMEs have alternative informational needs and as a result the impact of environmental factors on the adoption of the Statement of GAAP for SMEs was considered. Culture is considered the most important environmental factor affecting the accounting environment. The Value Survey Model of Hofstede was utilised to determine cultural dimensions of accounting students (n = 301) in South Africa and the United Kingdom (UK). The cultural dimensions were extended to the accounting values of Gray after which a distinct set of accounting values was identified for i) the adoption of formal, global and prescriptive accounting standards, ii) based on principles iii) by an informal SME sector. The results also revealed distinct cultural differences within South Africa as well as between South Africa and the UK. Thereafter the contents of the Statement of GAAP for SMEs/IFRS for SMEs were evaluated against reporting practices of the SME sector in South Africa. Firstly, an assessment of the contents was conducted amongst SME accountants (n = 157) using a five–point Likert–type scale. Secondly, financial statements compiled by the SME sector in South Africa were analysed to determine the relevance of the contents of the illustrative financial statements contained in the Statement of GAAP for SMEs. The analysis entailed a consolidation of a sample of SME financial statements from South Africa (n = 100). The study revealed that the accounting environment of the SME sector is affected by a wide range of environmental and related factors. These factors were summarised and discussed and recommendations for future research were made. / Thesis (Ph.D. (Accounting))--North-West University, Potchefstroom Campus, 2011.

Governments are becoming increasingly aware of SMEs as economical role players. As a result many initiatives were introduced to address the unique challenges of the SME sector. One of these initiatives was the introduction of a global accounting framework for SMEs by the International Accounting Standards Board entitled the IFRS for SMEs. South Africa became the first country to formally adopt the contents thereof as the Statement of GAAP for SMEs. The adoption of a formal accounting framework by SMEs is however challenged by, amongst other factors, the informal nature of SMEs, limited global focus, the involvement of owner–managers and different classifications of SMEs worldwide. Owing to these unique attributes it is possible that SMEs have alternative informational needs and as a result the impact of environmental factors on the adoption of the Statement of GAAP for SMEs was considered. Culture is considered the most important environmental factor affecting the accounting environment. The Value Survey Model of Hofstede was utilised to determine cultural dimensions of accounting students (n = 301) in South Africa and the United Kingdom (UK). The cultural dimensions were extended to the accounting values of Gray after which a distinct set of accounting values was identified for i) the adoption of formal, global and prescriptive accounting standards, ii) based on principles iii) by an informal SME sector. The results also revealed distinct cultural differences within South Africa as well as between South Africa and the UK. Thereafter the contents of the Statement of GAAP for SMEs/IFRS for SMEs were evaluated against reporting practices of the SME sector in South Africa. Firstly, an assessment of the contents was conducted amongst SME accountants (n = 157) using a five–point Likert–type scale. Secondly, financial statements compiled by the SME sector in South Africa were analysed to determine the relevance of the contents of the illustrative financial statements contained in the Statement of GAAP for SMEs. The analysis entailed a consolidation of a sample of SME financial statements from South Africa (n = 100). The study revealed that the accounting environment of the SME sector is affected by a wide range of environmental and related factors. These factors were summarised and discussed and recommendations for future research were made. / Thesis (Ph.D. (Accounting))--North-West University, Potchefstroom Campus, 2011.

Fair value accounting of biological assets in the public sector was introduced with the adoption of the public sector specific accounting standard, Generally Recognised Accounting Practice (GRAP) 101. The public sector currently uses different bases of accounting: public entities and municipalities must use accrual accounting and apply the principles of GRAP, while government departments report on the modified cash basis. Furthermore, public entities do not consistently apply the requirements of GRAP 101. This lack of a uniform basis of accounting has a negative effect on the comparability of financial information. This study identified the challenges facing the public sector in the application of GRAP 101, specifically regarding the fair value accounting of biological assets. The successful implementation of GRAP 101 by a public entity, AsgiSA-EC, was used as a case study to clarify the fair value accounting challenges in the reporting of biological assets in the sector. / Business Management / M. Accounting Science

The aim of this thesis is to create a comprehensive view of financial reporting of lease contracts from lessee's and lessor's point of view in accordance with International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP). The thesis is divided into four parts. The first part is devoted to basic characteristics of the lease and its reporting according to the currently applicable standards - IAS 17 and ASC 840. Content of the next part is Convergence of Accounting Standards. Second half of the thesis focuses on the Exposure Draft and Comment Letters.