Thesis (MBA)--Stellenbosch University, 2000. / The investing public seeks to have knowledge on the future and anticipated
enterprise performance. The starting point for gathering such information is
presented in the enterprise financial statements. Secondary data presented by the
Business School of the University of Stellenbosch was used. The study focused on
finding out the magnitude of reporting cash flows from operating activities using the
indirect or direct methods. The study also checked the frequency of reporting value
- added statements, and took a forecast view on what the reporting nature is
expected to look like in the next financial year-end.
The database used in the study included 655 listed and delisted industrial companies
in the Johannesburg Stock Exchangeover the ten-year period starting from January
1990 through to December 1999. It is noted that the South African Institute of
Chartered Accountants, as stated in Statement AC 118, encourages enterprises to
report cash flows from operating activities using the direct method. This is because
the direct method provides information which may be useful in estimating future
cash flows and which is not available under the indirect method.
The study noted the rate at which newly listed enterprises report their initial cash
flow statements, and the rate at which enterprises listed before 1996 are changing from reporting using the indirect method to the direct method. The results showed
that at present South African enterprises are reporting cash flows from operating
activities at a higher rate that in other notable Western Countries subscribing to the
doctrines of the International Accounting Standards Committee (IASC). The number
of enterprises presenting value - added statements has shown an increase, though
reporting value - added statements is not yet statutory. For the forecasting exercise
part of the study, Brown's linear double exponential smoothing technique was
applied.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51644 |
| Date | 12 1900 |
| Creators | Mashalaba, T. L. |
| Contributors | Hamman, W. D., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 96 p. |
| Rights | Stellenbosch University |
Page generated in 0.0026 seconds