Submitted in fulfilment of the requirements of the Master of Accounting degree, Faculty of Accounting and Informatics, Durban University of Technology, Durban, South Africa, 2016. / Financial accountability, financial control and financial reporting are the three main elements that determine the performance of the municipality. An analysis had to be made on each of these elements to find any limitations and gaps that negatively impact on the performance of the organisation. The aim of the study was to evaluate financial accountability, financial control and financial reporting of Umtshezi Municipality. The study was a census study and it was quantitative, descriptive and cross sectional in nature. The target population comprised of 45 employees from the finance department which was divided into five units, namely, Supply Chain Management, Expenditure, Asset/Fleet, Revenue and Budget. The IBM Statistical Package for Social Sciences (SPSS) version 22.0 was used to determine statistical results. The findings of the study discovered that officials lack educational qualifications and adequate understanding of the MFMA. The respondents also indicated that there was political influence affecting administration within the municipality. The study recommended that the municipality should provide funds to train employees. National Treasury should conduct consistent reviews on the implementation of the MFMA. The Department of Cooperative Governance and Traditional Affairs (COGTA) should intervene to protect the administration from political threats. / M

International Financial Reporting Standards (IFRS) are required or permitted for use in over 100 countries across the world. IFRS are developed by the International Accounting Standards Board (IASB). The IASB, with no formal or legal mandate, is performing a task normally reserved for national standard-setters. This study sought to establish the legitimacy of IFRS by assessing the due process of the IASB. The study established that countries have different motivations for choosing IFRS which raises legitimacy concerns. The global financial crisis compounded the legitimacy challenges of IFRS by exposing due process vulnerabilities. The study established that the IFRS governance structures are dominated by powerful stakeholders especially members of the G-20. Although the due process procedures provide opportunities for participation, actual participation is still dominated by constituents from Europe. Africa and South America still account for very low proportions of governance seats and participants in standard-setting projects. / Financial Accounting / M. Com. (Accounting)

The development of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was based on the demand for a more simplified financial reporting standard, compared to International Financial Reporting Standards (IFRS). Despite simplifications, the requirements of the IFRS for SMEs are still regarded complex and costly to apply, especially for micro entities in developing countries such as Namibia. Consequently, there is a need to further simplify financial reporting requirements for micro entities in the form of a third-tier financial reporting standard. A third-tier standard can take the form of either a separately developed standard or a simplification of existing standard(s). There are more advantages to the development of a standard based on existing standard(s), taking into account the Namibian financial reporting environment. It is therefore recommended that Namibia develop a third-tier standard based on the IFRS for SMEs. / Financial Accounting / M. Phil. (Accounting Science)

International Financial Reporting Standards (IFRS) are required or permitted for use in over 100 countries across the world. IFRS are developed by the International Accounting Standards Board (IASB). The IASB, with no formal or legal mandate, is performing a task normally reserved for national standard-setters. This study sought to establish the legitimacy of IFRS by assessing the due process of the IASB. The study established that countries have different motivations for choosing IFRS which raises legitimacy concerns. The global financial crisis compounded the legitimacy challenges of IFRS by exposing due process vulnerabilities. The study established that the IFRS governance structures are dominated by powerful stakeholders especially members of the G-20. Although the due process procedures provide opportunities for participation, actual participation is still dominated by constituents from Europe. Africa and South America still account for very low proportions of governance seats and participants in standard-setting projects. / Financial Accounting / M. Com. (Accounting)

Reporting in terms of the principles of IAS 41, or equivalent, did not result in comparable financial results in the industry. This is mainly due to valuation challenges experienced and the significant costs of these valuations, contributing to the theoretical gap addressed in this study, where the cognitive theory was applied to determine how to improve the consistency, validity and reliability of the fair valuing of biological assets. The knowledge gap is a result of the inconsistent application of the requirements of IAS 41 which results in incomparable financial results which impairs the decision-making of the users of such information. The results of the study were analysed and contextualised to develop an application guideline to assist the financial statement compilers to present results to users that will enhance their decision-making. This guideline is the result of an investigation on the industry trend and standards on how to value, disclose and report on biological assets in the annual reports; an assessment of the valuation challenges experienced, the valuation factors considered and the frequency thereof; an analysis of the valuation inputs applied and a contextualisation of the various users’ expectations when these financial results are assessed. Such assessment included an inductive content analysis, further grounded theory contextualisation and grouping of the results into a guideline that was tested on various users to ensure the usefulness and validity thereof. The purpose of the study and the developed guideline is to determine how to improve the consistency, the validity and the reliability of the fair valuing of biological assets to derive at informing, comparable, decision-enhancing balances in a cost efficient manner when detailed information is presented. / Centre for Accounting Studies / D. Phil. (Accounting Sciences)

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

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