M.Comm. (International Accounting) / Globalisation is causing a convergence of economic, trading, political and social processes. As a result, geographical boundaries are becoming less significant in the world of business and accounting as most countries around the world have chosen to adopt a common language: International Financial Reporting Standards (hereafter IFRS). The problem is that most of the countries on the African continent have yet to become part of this global conversation as there are serious challenges hindering the adoption of IFRS. The primary objective of this study was to discuss the challenges that continue to hinder the effective adoption of IFRS in the majority of African countries. The objective of the study was explored through the review of: i) current international accounting structures and how Africa fits in; ii) the benefits of adopting IFRS; iii) the current status of IFRS in Africa; and iv) challenges faced by countries in Africa that have already adopted IFRS. An empirical study consisting of a questionnaire (distributed to 35 registered accounting bodies in Africa) and interviews with significant individuals in the international accounting profession were also utilised to meet the objective of the study and the results were analysed and discussed in detail. It was concluded that there are many challenges that continue to hinder the adoption of IFRS in the majority of countries on the African continent and structures are currently being put into place in order that these challenges may be addressed.

M.Com. (Business Management) / Please refer to full text to view abstract

M.Com. (Computer Auditing) / Please refer to full text to view abstract

M.Com. (Accounting) / Please refer to full text to view abstract

D.Comm. / Accurate, credible and reliable financial reporting is critical for the effective functioning of the world’s capital markets and the protection of the interests of stakeholders, who rely on such information for their decision making. All the well- known corporate collapses of the 21st century have in common fraudulent financial reporting, unscrupulous management practices and the fact that they all had audit committees consisting of well-known and respected people. This state of events highlighted the fact that audit committees should not merely exist as window-dressing, but should be effective in their functioning. Audit committees will thus only be of value if they are properly constituted, are functioning effectively and if their role is clearly understood by all the parties concerned. This study’s research problem was to analyse the effective functioning of audit committees in the modern business environment, and the study aimed to investigate the factors and events that impact on the development, status and effective functioning of audit committees at large listed companies in South Africa. This was done through a comprehensive literature study of the factors impacting on audit committees and the empirical testing thereof at the largest listed companies in South Africa. The study found that audit committees are well established, properly constituted, have the authority and resources to effectively discharge their responsibilities and consist of members who act independently and who have the right mix of appropriate experience, financial literacy and financial expertise amongst their members. The audit committee’s role was found to be generally well understood and supported by the board and the Chief Financial Officers. It was further found that the audit committees are effective in discharging their oversight responsibilities on the board’s behalf, with the only real exception being their effectiveness regarding IT-related aspects. However, audit committee reporting in annual reports was found to be of a poor standard and did not reflect the iii actual workings and effectiveness of the committee. It was also found that the audit committee’s perceived responsibilities are evolving and that audit committee members’ legal liabilities are increasing. The research findings make a valuable contribution to the existing body of knowledge on current audit committee practices and developments. The study also outlines new responsibilities for future audit committees, as well as aspects that should be addressed in future legislation, regulations, corporate governance codes and best practice standards for audit committees.

M.Comm. (Accounting) / The emphasis given to narrative disclosure in corporate reporting, both in South Africa and internationally, has greatly increased in recent years. A major example of this was the issuance of The Conceptual Framework for Financial Reporting (hereafter Conceptual Framework 2010) by the International Accounting Standards Board (hereafter IASB) in 2010. The Conceptual Framework was developed using the objective of financial reporting as a foundation (IASB, 2010a: par-OB1). In 2010, the IASB issued an International Financial Reporting Standard (hereafter IFRS) Practice Statement known as ‘Management Commentary – A framework for presentation’ (hereafter IFRS Practice Statement on Management Commentary). The IFRS Practice statement on Management Commentary defines management commentary as “a narrative report that provides a context within which to interpret the financial position, financial performance and cash flows of an entity. It also provides management with an opportunity to explain its objectives and its strategies for achieving those objectives” (IASB, 2010b: par-IN3).

Magister Administrationis - MAdmin / The future existence of municipalities is determined by their ability to remain financially sustainable. This study is significant as municipalities need to ensure that they are financially sustainable for the continued provision and maintenance of quality and affordable services to all the residents within their jurisdiction. The primary objective of the study was to assess the financial performance of the Cape Agulhas Municipality over a period of ten years. A secondary objective was to identify factors that constrain or facilitate improved financial management in municipalities and that may have an influence on their sustainability. The focus of the study was limited to financial management aspects of the Cape Agulhas Municipality from 2003 to 2014 and was conducted at a macro or strategic level. The research is a longitudinal qualitative study as this methodology was deemed as the best to undertake in a study of this nature. The data collection process comprised of open ended semi- structured interviews with senior politicians and officials in the municipality. Financial data from the annual financial statements and the Auditor General of South Africa over the period of study were evaluated and analysed so as to produce financial ratios and establish trends. The financial data was assessed against the financial health measures as identified by the National Treasury to determine the financial status of the municipality. Analysing the financial performance of the municipality produced information that can be used as an early warning system to mitigate further deterioration of the financial situation and inform future decisions in terms thereof. This study was useful as the findings may contribute towards effective municipal financial management and the financial sustainability of municipalities. The study makes the following findings and recommendations: The municipality experienced liquidity tensions from 2006. Although the payment ratio had been increasing over the last two years of the study, consumer debtors had been increasing and limited amounts were budgeted for the writing off of bad debt. Electricity tariff increases were significantly above the inflation rate, and salaries, wages and allowances were the largest expenditure item over the whole period of the study. In terms of provision for maintenance and repairs, these were less than half of the norm for most of the study period, and lastly the cash reserves were severely depleted from 2006 as they were used to fund long term capital projects. It is recommended that the municipality stabilises the decline in current assets and continues with the diligent implementation of its credit control policy, not only to maintain the positive collection rate but also to curb the increase in consumer debtors. In order to enhance the affordability of rates and tariffs the municipality must perform a cost analysis of all rates and tariffs to ensure that they are cost reflective. The organisational structure must be reviewed annually to verify that only critical and legislatively required posts are approved and budgeted for, as this is the largest expenditure item in the municipal budget. Furthermore, a comprehensive infrastructure maintenance plan must be developed to guide decisions when the budget for maintenance and repairs is considered, not only to ensure that this budget item is closer to the national norm but that it is spent on and tracked to infrastructure with the highest priority. The municipality needs to develop and approve a long term financial plan with its related policies to curb the further decline of its cash reserves and which includes a capital funding mix that is aligned to the useful life of the infrastructure to be financed.

Accountancy education in South Africa has been very controversial during the last few years and this controversy has led to objective self-examination by academics. It is acknowledged that there has been a substantial growth in the body of knowledge generally and that the accountancy profession has also been faced not only with a certain growth in the body of knowledge but also with a growth in society's expectations of the profession. These expectations could possibly include the expression of opinions on the fairness of profit forecasts and projected financial statements, including the underlying assumptions and opinions on management effectiveness. Possibly in order to accept greater responsibilities for the detection of fraud and the anticipated growth of society's expectations and greater utilisation of the computer, the future chartered accountant will be expected to be more proficient. This leads to the premise that a broader and less technique-oriented education is required for the future chartered accountant in South Africa. Developments overseas indicate that the profession in certain countries, plays a very active role in the final year of the accountancy education of its trainee accountants. In Australia the "Professional Year" is organised by The Australian Institute of Chartered Accountants. The candidates are evaluated on their performance during the "Professional Year" in assignments as well as their participation in classes, their attendance at the sessions and their successful completion of the final examination which is not regarded as a hurdle. In countries such as Canada and Scotland the institutes play an active role in promoting their own block-release courses. In Scotland the institute has its own lecturing staff, whereas in Canada in the province of Ontario, the Ontario Institute uses staff of the larger firms. In certain countries the final qualifying examination is intended to be difficult and case studies are used in the examination. In certain countries where the universities playa greater role in the educational process, the accountancy institutes are phasing out their own examinations. In other countries multiple-choice questions are set as a matter of expediency, where very large numbers of candidates are involved. In other countries, where the number of candidates is not too large, candidates do oral examinations and write theses as well. Complaints have been made about the length of the courses in South Africa, but in some countries accountants qualify between the age of 30 and 35 years. It is submitted that accountancy education in South Africa has been too technique-oriented and a happy medium between a conceptual and technique-oriented approach is required. University academics should play a more active role in research, and it is suggested that the Public Accountants' and Auditors' Board should give serious consideration to the possibility of reducing the number of contracting universities that are entitled to educate students for a Certificate in the Theory of Accountancy. The ultimate requirement for the profession is graduate entry, but in the interim entry standards must be improved and it is suggested that the profession create a trust fund utilising the Accounting Development Foundation, which could make bursaries available and thus make the profession more attractive to bright scholars. It is not envisaged that a detailed common body of knowledge should be prescribed, but more stringent conditions for the approval of contracting universities, should lead them to define the details themselves. This should not be stultifying, but should encourage research, which in the long run is in the interests of the profession. Communication between members of the profession and academics is essential to promote research and ensure the cross-fertilisation of ideas. It is also submitted that the final qualifying examination has had an undesirable effect on the teaching. This is because the proficiency of lecturers is generally measured by the success of the candidates in the final qualifying examination. A change in the format of the final qualifying examination is therefore imperative. A more case-study oriented examination is proposed. The value of the practical-experience requirement (articles) is questioned. It is submitted that for the practical ¬experience requirement to be meaningful, greater and more effective control of the quality of experience, to which the trainee accountant is exposed, is required. It is recommended that articles of clerkship or service contracts be dispensed with and that the training quotas of firms be more flexible, depending on circumstances. For the trainee accountant's experience to be meaningful it is necessary that his principal be kept up to date continuously with the latest developments which will result in greater emphasis being placed on required continuing education. The introduction of a quality review programme by the profession to improve the performance standards of its members is recommended. The abovementioned requirements, namely more effective control of practical-experience requirements, the introduction of a quality review programme and required continuing education as well as the fact that the decision making process in the accountancy profession is cumbersome and time-consuming necessitates a rationalisation of the controlling bodies in the profession. A questionnaire was designed to test the opinion of the respondents with regard to various controversial issues surrounding accountancy education. It appears that the profession does not want to accept greater responsibility for the possible extensions of the attest function and it can be stated that it favours the retention of the audits of private companies. It is thus obvious that certain changes are urgently required and the profession as well as academics will have to define its priorities very carefully. In the final analysis it must be borne in mind, that the profession must not overlook the public interest. / Thesis (DCom)--University of Pretoria, 2010. / Accounting / DCom / Unrestricted

The objectives of this study are to determine the effect on certain financial statement relationships of using the equity method to account for subsidiaries in lieu of consolidation and to gather evidence to suggest whether or not bond rating agencies take into consideration these effects in rating corporate bonds. Sixty manufacturing companies listed in COMPUSTAT as having a subsidiary accounted for by the equity method compose the experimental group. The remaining manufacturing companies in COMPUSTAT compose the control group. Computation of eight variables from COMPUSTAT provided data from the companies' original financial statements. Consolidating the subsidiaries of the experimental companies using annual 10-K data made it possible to recompute the same eight variables with these subsidiaries consolidated into the parents' statements. Comparison of the variables for the companies before and after consolidation revealed that five of the eight variables were substantially different and that the differences were statistically significant. Horrigan's multiple regression bond rating model provided indirect evidence to examine which method (equity or consolidation) bond raters use in their rating process. The model is a surrogate for the rating process. Use of the model necessitated calculation of two sets of regression coefficients—one using data in which subsidiaries were accounted for by the equity method and a second when the subsidiaries are consolidated. A derivation sample drawn randomly from both the experimental and control groups provided the data for computation of the coefficients. Comparison of predictions using the two sets of coefficients and validation sample company data revealed that the consolidated method data generated predictions in greater agreement with Moody's bond ratings than did the equity method data. The N-probit technique indicated that the predictions of Horrigan's model are not biased. The research suggests that bond raters find data based on consolidation of subsidiaries more important in their analyses than data based on the equity method. This suggests that the FASB should modify generally accepted accounting principles with regard to the equity method of accounting for unconsolidated, majority-owned subsidiaries.

Literature on financial statement analysis has been documented by various authors on how the performances of organisations can be measured using financial statement analysis as a tool. Most of the literature focused on what has been written in relating to organisations which are listed on the stock exchange. However, the same principles which are applied in evaluating the performance of large organisations can equally be applied to any organisation; this includes small and medium-sized enterprises operating in Namibia. Despite the fact that financial statement analysis is an important tool for evaluating the performance of organisations, no previous literature was found pertaining to the evaluation of the performance of Namibian small and medium-sized enterprises using this tool. This research will attempt to identify how management of Namibian small and medium-sized enterprises can effectively make use of financial statement analysis as a tool in evaluating the performance of the organisations in order to make correct strategic decisions that will benefit the SMEs.