Thesis (MAcc)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: Scrip dividends have become increasingly popular in South Africa SInce the
introduction of secondary tax on companies (STC) in the 1993 budget. There is more
than one approach to the treatment of scrip dividend schemes for accounting purposes,
i.e. the reinvestment approach and the capitalisation issue approach. Unfortunately
guidance in the form of a statement or guideline from the South African Institute of
Chartered Accountants has not been forthcoming.
Companies in the United States of America account for stock dividends (capitalisation
issues) in a variety of ways and several studies have analysed the effect of these
accounting treatments on retained earnings and the retained earnings hypothesis.
Several empirical studies in the United States of America and the United Kingdom
have documented marked differences in the ability of companies in these countries to
make distributions to shareholders. For this reason the accounting treatment of stock
dividends and scrip dividends in these countries was examined and compared to the
methods used in South Africa.
Earnings per share is often used by financial analysts to analyse and compare
companies. The methods used in South Africa to account for scrip dividends result in
different calculations of earnings per share and therefore the effect of the different
methods was examined.
This study concludes that the reinvestment approach is theoretically the most
acceptable accounting treatment of scrip dividend schemes In South Africa. A representative sample of companies which declared scrip dividends in the period 1993
to 1999 was selected to determine how these schemes are implemented in the South
African economy. These companies' financial statements were analysed to determine
if the scrip dividend schemes were treated in terms of the accounting method
proposed in this study and if the necessary information was disclosed in the financial
statements. This study finds that different accounting approaches are used in South
Africa, that earnings per share and secondary tax on companies are not calculated
consistently for accounting purposes and that the information disclosed to the users of
the financial statements differs from company to company. It is recommended that
the South African Institute of Chartered Accountants issue accounting guidelines to
the drafters of financial statements regarding scrip dividend schemes. / AFRIKAANSE OPSOMMING: Die verklaring van skripdividende het in Suid-Afrika in gewildheid begin toeneem
met die inwerkingstelling van sekondere belasting op maatskappye (SBM) in die
1993-begroting. Daar is meer as een metode om skripdividendskemas rekeningkundig
te verantwoord, naamlik die herbeleggingsbenadering en die kapitalisasieuitgiftebenadering.
Die Suid-Afrikaanse Instituut vir Geoktrooieerde Rekenmeesters
het egter op hierdie stadium nog nie 'n rekeningkundige standpunt of riglyn oor die
rekeningkundige verantwoording van skripdividendskemas uitgereik nie.
In die Verenigde State van Amerika kan maatskappye kapitalisasie-uitgifte op
verskillende maniere rekeningkundig verantwoord en verskeie studies het die invloed
ondersoek wat hierdie metodes op verdeelbare reserwes en die behoue wins-hipotese
het. Verder het studies wat in die Verenigde State van Amerika en die Verenige
Koningkryk gedoen is, bevind dat hierdie lande se beperkings op verdelings aan
aandeelhouers baie van mekaar verskil en om die rede is die metodes wat in die lande
toegepas word om kapitalisasie-uitgifte en skripdividendskemas rekeningkundig te
verantwoord, ondersoek en met die metodes vergelyk wat in Suid-Afrika toegepas kan
word.
Aangesien verdienste per aandeel dikwels deur finansiele ontleders gebruik word om
maatskappye te ontleed en met mekaar te vergelyk en omdat die metodes wat in Suid-
Afrika toegepas kan word verskillende berekeninge van verdienste per aandeel tot
gevoIg het, is die uitwerking wat die verskillende metodes op die berekening van
verdienste per aandeeI het ook ontleed.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52220 |
| Date | 12 1900 |
| Creators | Durand, Ilanie |
| Contributors | Olivier, P., Stellenbosch University. Faculty of Economic and Management Sciences . School of Accounting . |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | af_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 343 p. |
| Rights | Stellenbosch University |
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