M.Com. (International Accounting) / The definition of control and the non-consolidation of special purpose entities in group annual financial statements became a topic of concern and focus to investors, securities exchange regulators and accounting professionals after the global financial crisis. The global financial crisis began in 2007 and was caused in part, by investors not being able to access reliable information about the risk levels of entities in which they had invested. Organisations from around the world began to focus on financial reporting and auditing standards in order to determine how the crisis had occurred and how it could be prevented in the future. The focus has highlighted the definition of control, which would determine whether an entity would be consolidated into a group of companies or not, and the disclosure of the decisions, judgements and assumptions made by management when determining whether to consolidate an entity. Stakeholders have pushed for a framework for consolidation to ensure that entities would not be able to hide poorly performing investments and be able to easily determine the risks that the group is exposed to as a result of management’s investment policies. The International Accounting Standards Board (IASB) has responded to the requirements of stakeholders and the critiques of the previous definitions of control by releasing International Financial Reporting Standard 10: Consolidated Financial Statements (IFRS 10) in 2011, which prescribes the latest definition thereof. The research study will establish the historical international development of the definition of control in various accounting contexts as prescribed by the IASB and its predecessors. The definition of control as prescribed by other financial reporting standards will be analysed, but as IFRS 10 is the first financial reporting standard to be released with a significantly different definition, it will form the main focus of the study. Definitions and opinions as stated by the Financial Accounting Standards Board (FASB) will be assessed for comparability and context. The study will assess whether the latest definition of control is considered to be complete and sufficient to apply to all situations where the question of control has to be evaluated. A qualitative research design in a critical framework has been adopted for this research. The research traces the origins of the definition of control and makes a critical assessment of each definition prescribed by the IASB and its predecessors. The research is structured in chapters dedicated to specific decades, which detail the definition prescribed at the time, the reasons for any changes to definitions prescribed in previous periods and an assessment thereof. This research has found that the IASB’s definition of control has changed significantly over the past 60 years, the most significant change being the way in which control relating to investments in other entities has been defined. The IASB has moved away from the concept of control being based on majority share ownership, to a definition based on risk and reward exposure and the decision making capabilities of the investor. IFRS 10 is effective for companies with a financial year beginning on or after 01 January 2013 and the effects of the new definition of control have yet to be analysed. The definition of an asset has followed suit, and is no longer based on the property rights to an asset, but is rather based on flows of economic benefits to an entity with the latest working definition being ii based on control. The new definition of an asset is in line with the objective of the IASB to create a principles-based financial reporting framework, rather than a rules-based framework which prescribes the required accounting methods for assets and investments. The new definition of an asset is currently a working definition contained in an exposure draft, the purpose being to allow users of IFRS to comment until the cut off date in 2014. Once formal feedback has been considered, the IASB will determine whether the new definition of assets should be adopted or not. The Conceptual Framework within which the new definition is to be contained forms the base on which all other financial reporting standards are structured and other exposure drafts have been released. All the new definitions of control that have been released in new financial reporting standards, exposure drafts and discussion papers are more in line with a decision making framework for control rather than a rules-based or risks and rewards framework. These are however limited to the financial reporting standard in which they have been released, and are not interchangeable or applicable to other types of transactions. The IASB has not released any statements which indicate that the development of a universally applicable definition of control is a priority or an objective at this time.

M.Comm / The international financial reporting arena has undergone considerable changes in recent years. The recognition, measurement, presentation and disclosure requirements have increased significantly over the past two decades. Standard setters around the world have justified the more stringent reporting requirements on the grounds of the changes in the international business and economic landscapes as a result of globalisation. These increased financial reporting requirements placed a tremendous burden on Small and Medium-sized Entities (SMEs). As a result, the need for differential reporting has been identified. The notion of differential reporting acknowledges that the users of the financial statements of SMEs have different needs compared to those of public companies. Stakeholders and users of financial statements of SMEs are generally in a position to acquire information additional to that disclosed in the financial statements. Financial information presented in the financial statements is therefore not required to be exhaustive. The users of public company financial statements on the other hand, generally do not have access to any additional information, other than that presented in the financial statements. The information required to be presented in the financial statements, must therefore be extensive in order to allow the user to make informed decisions based on the information. Various countries around the world have responded to this cry for differential reporting, and standard setters have adopted differential reporting in one form or the other. This study discusses the need for differential reporting and outlines the developments of differential reporting internationally and in South Africa, by means of a literature review.

Literature suggests that countries should adopt the International Financial Reporting Standards and the worldwide recommended narrative reporting in annual reports. However, in developing countries, a range of prerequisites have to be put in place to ensure compliance therewith. This study has two main aims: firstly, to identify the way Rwandan companies report and to compare their reporting system with international requirements, and secondly to establish how aware Rwandan companies are of narrative reporting. This study uses a basic research and a mixed methods approach. A mixed method approach is used when the researcher supplements qualitative information with a quantitative approach to provide a more comprehensive analysis of the problem. A sample of 24 companies formed the subject of this study. Data were collected using a questionnaire which was supplemented in some cases with interviews. This study revealed that although Rwandan companies report annually, they do not all comply with International Financial Reporting Standards. While Rwandan companies do not totally ignore narrative reporting and are aware of its importance, some preparers lack some knowledge towards the preparation and presentation of such reports. Some of the reasons for this were the lack of a properly constituted accounting board, the lack of sound regulation in the accounting profession and the absence of enough qualified accountants Based on the current study’s findings, it is recommended that the accounting profession in Rwanda should be strengthened. This can be achieved with the help of the government of Rwanda and the international community. The current study also revealed the necessity for Rwanda to adopt the International Financial Reporting Standards. To achieve this, an incremental adoption approach is recommended which could lead the way to the full adoption of the International Financial Reporting Standards. / Thesis (M.Acc.)-University of KwaZulu-Natal, Westville, 2009.

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. (International Accounting) / One would be hard-pressed to find an accountant who does not know about the Enron collapse which took place over a decade ago. The scandal was the largest the corporate world had seen at the time, and its impact was significant. Shareholders of the company lost tens of billions of dollars (Jickling, 2002), 4,000 employees lost their jobs (Bratton, 2002), the reputational damage suffered by their auditors Arthur Andersen was severe enough to break up the firm (Fearnley, Brandt & Beattie, 2002) and members of the public stood in awe that this was even possible. This incident was succeeded in following years by more high-profile international corporate scandals involving Tyco International, WorldCom and Parmalat, each one affecting a variety of stakeholders and broader society. The common thread that weaves these corporate collapses together appears to be seized opportunities to misreport financial information. Corporate failures of companies as big as Enron are inclined to give cause for future business regulation (Bratton, 2002). As noted by FearnIey et al. (2002), the Enron collapse provided regulators with an opportunity to reconsider fundamental issues associated with the regulatory framework for corporate financial reporting. Bratton (2002) explains that numerous regulatory-related concerns had been implicated prior to the completion of the Enron investigation. As with the demise of the other companies, the cause thereof involved questionable practices, particularly relating to the accounting treatment of transactions and the reporting of the financial position and performance to the users of financial statements. The result was that stakeholders of the entities did not have access to accurate and complete information regarding the entity in order to make sound economic decisions. This phenomenon is referred to as information asymmetry (Gaffikin, 2008).

Ling Fook-tong. / Abstract also in Chinese. / Thesis (MBA)--Chinese University of Hong Kong. / Bibliography: l. 49-50.

Thesis (MAcc (Accountancy))--University of Stellenbosch, 2005. / The fact that investors increasingly invest in companies from another country than the investor himself and the consequential globalisation of capital markets, resulted in the European Parliament and Council (EP) accepting Regulation No. 1606/2002 during 2002. The consequence of the regulation was that uniform accounting standards had to be implemented throughout the European Union (EU). The accounting standards that were accepted, are the International Financial Reporting Standards (IFRS) (previously known as International Accounting Standards (IAS)). The regulation further determined that the effective date of this required compliance with IFRS was 1 January 2005. At the time when the regulation was accepted, most companies that were listed on the JSE Securities Exchange of South Africa (JSE) still prepared their financial statements in accordance with South African Statements of Generally Accepted Accounting Practice (South African SGAAP). The implication of the acceptance of the regulation by the EP was that in the event that a company was not only listed on the JSE but also on a stock exchange in the EU, the financial statements of that company would have to be prepared in accordance with IFRS. In this study two groups of companies were selected for evaluation. The one group consists of companies with a primary listing on the JSE and a secondary listing in the EU (first group) and the other group has a primary listing in the United Kingdom (UK) and thus the EU, with a secondary listing on the JSE (second group). The purpose of the study is to identify the implications of the acceptance of abovementioned regulation on the financial reporting of the selected companies. Firstly, a study was made of the differences between the Generally Accepted Accounting Practice of the United Kingdom (UK GAAP) and IFRS. The reason for this largely relates to the fact that there are still substantial differences between these two sets of accounting standards. No such study was conducted in respect of differences between South African SGAAP and IFRS as South African SGAAP was completely replaced by IFRS during 2004 and hence no differences exist any more. The only exception relates to the 500 series of standards that are unique to South Africa. There are, however, only two issued standards in this series and hence no further attention was paid to that. Hereafter the 2002 financial statements of all the selected companies were evaluated by measuring it against an IFRS disclosure checklist for 2002. The purpose was to identify the extent to which the selected companies comply with IFRS by focusing on the areas with regards to which they do not comply with IFRS. It was found that the companies of the first group largely fail to comply with IFRS in respect of matters of disclosure, whilst the second group of companies sometimes also, in their application of recognition requirements and measurement guidelines, used different practices to those suggested by IFRS. This was largely attributable to the fact that there are substantial differences between UK GAAP and IFRS, whilst South African SGAAP and IFRS already were very similar until recently. Consequently, questionnaires were sent to interested selected companies in which they could give feedback on their level of awareness and perceptions of the required transition to IFRS by 2005 as well as the procedures that they have followed or will follow in their process of transition to IFRS. Fourthly the 2003 financial reports of the selected companies were evaluated for compliance with IFRS by measuring it against the IFRS disclosure checklist that would be applicable on their 2004 financial periods. This was done in order to determine whether the selected companies showed any progress in their level of compliance with IFRS. This process also identified which IFRS, which were issued during 2003/2004, will be applicable on the 2004 or later financial periods of the selected companies, as these are further areas that will demand the attention of the selected companies in their process of becoming IFRS compliant. It was found that all selected companies showed rather little progress in their level of IFRS compliance. It is however concerning that even though South African SGAAP were previously very narrowly aligned with IFRS, the companies of the first group still fail to comply with fairly simple disclosure requirements. It would thus appear that they do not take the process of transition to IFRS serious enough. The fact that the second group of companies also did not make much progress can still be justified by the fact that UK GAAP were not aligned closer to IFRS during 2003 and most of the selected companies were still busy with the planning process for the transition to IFRS. It is expected that the financial statements of these companies will display substantial progress in their 2004 financial periods. Finally the compliance mechanisms were studied in order to determine which processes are in place to ensure that companies will indeed comply with IFRS. This study was done in respect of the EU, the UK and South Africa. All three these regions either already have or will have bodies in the near future that will have the task of evaluating the financial statements of listed companies for IFRS compliance. The conclusion is however that as a result of the negative consequences of noncompliance with IFRS sufficient factors do exist that will motivate companies to fully comply with IFRS. In addition, the listing requirements of the JSE has changed and financial reporting in accordance with IFRS is now a requirement.

pt. 1. The mandatory adopton of IFRS and Big4 audits on earnings quality -- pt. 2. The cross-border spillover effect of financial reporting on investment efficiency: evidence from mandatory IFRS adoption -- pt. 3. Discretionary fair value earnings and CEO cash compensation: evidence from continental Europe. / Chen, Chen. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2011. / Includes bibliographical references (leaves 148-157). / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstract also in Chinese.

This thesis focuses on compliance with IFRS disclosure requirements in Malaysia. There are four objectives that this study attempts to achieve, namely: (1) to ascertain whether present regulatory enforcement is effective in curbing non-compliance with IFRS in Malaysia; (2) to determine whether corporate ownership structure, culture and corporate governance attributes have a significant influence on the extent of compliance with IFRS disclosure requirements; (3) to identify the factors of (non-) compliance with IFRS from the perceptions of preparers and auditors; and (4) to explore the reasons why an unqualified audit report was issued despite non-compliance with IFRS disclosure requirements. This study employs a mixed methods approach to achieve the stated objectives, where annual reports of 225 Malaysian listed companies are examined and interviews with regulators, preparers and auditors are conducted. The following findings are documented in this study. Although compliance with accounting standards is mandated by law, this study demonstrates that no Malaysian company has fully complied with IFRS disclosure requirements. Similarly, the companies examined still receive unqualified audit reports despite significant non-compliance with IFRS disclosure requirements. This study argues that merely mandating compliance with accounting standards by law does not result in full compliance with accounting standards if sufficient or stringent enforcement is not in place. The Malaysian economy is dominated by family-owned companies and government-owned companies; however, this study finds that there was not enough evidence to support the influence of these ownership types on the extent of compliance with mandatory disclosure requirements. Despite the importance of corporate governance mechanisms in enhancing financial reporting quality, this study finds that only board meeting, audit committee size and audit committee expertise are significantly associated with the extent of compliance with IFRS disclosure requirements. However, the association direction for audit committee expertise is puzzling, because the negative coefficient suggests that mandatory disclosure decreases with the presence of audit committee experts. This study also provides evidence that culture (ethnicity) has a significant influence on the extent of compliance with IFRS disclosure requirements. This study also contributes to the extant literature by documenting the factors of (non-) compliance with IFRS from the perceptions of preparers and auditors. These factors are the attitude of top management, problems with accounting standards, lack of enforcement, passive investors, materiality, accountants’ attitude, undeveloped capital markets and political excuse. These (non-)compliance factors in fact cannot be revealed by statistical analysis. This study finds that materiality and true and fair view are the two reasons suggested by interviewees that can explain why unqualified audit opinion was expressed despite non-compliance with IFRS. Nevertheless, this study argues that materiality and true and fair view override might also be used (or misused) as an excuse by auditors for not qualifying audit reports in the case of significant non-compliance with IFRS disclosure requirements, given the subjective and vague concept of both materiality and true and fair view.

M.Comm. (Accounting) / In January 2010, the Department of Accountancy at the University of Johannesburg changed their teaching and learning strategy. This new strategy moved away from a teacher-centered classroom experience to a student-centered approach. Several interventions were employed to accomplish this. Examples include: pre-reading in preparation of the next lecture, self-assessment tests of the main objectives of the topic under discussion, tutorials, assignments and consultation with peers and/or lecturers. Accounting education at the Department is based on International Financial Reporting Standards (IFRS). IFRS is seen as principle-based standards. Many educators of accounting will have to adapt their teaching strategies and approaches when they deal with principle-based standards. They need to move away from teaching the rules to facilitating the understanding of principles, so that it can be applied to various scenarios. The purpose of this study is to explore the perceptions of academic trainees on a new teaching and learning strategy in the Department. This is done through a review of pedagogical approaches and strategies as suggested in the literature and then by gaining insight from academic trainees, through in-depth interviews, of the detailed working of the new teaching and learning strategy and the impact that the new teaching and learning strategy had on their learning of IFRS. The study found that the academic trainees perceived the new teaching and learning strategy to be successful and a good model to follow. It provides students with opportunities to learn in different ways, it encourages deep learning patterns and it places the responsibility for learning with the students so that they will become life-long learners. The teaching and learning strategy is not infallible and can be improved by providing more areas where students can debate multiple solutions, by incorporating more group work to enhance interpersonal skills and by explaining the workings and the purpose of the teaching and learning strategy more effectively.