bluuebunny/crossref_metadata_2025 huggingface dataset:
What Is A Public‐Sector Asset?
Authors: Burritt Roger L. , McCrae Michael , Benjamin Chandra
Published: January 2009

Accounting standards and government pronouncements specify particular definitions of public‐sector assets for general‐purpose financial disclosure, or for particular applications. It would be unfortunate if this situation of mandated definitions stifled further exploration and discussion of the nature, definition and identification of public‐sector assets. As the trend to commercialisation generates further hybrid forms of public‐sector reporting entities, a more “multicultural” approach to asset definition and recognition may be necessary to service users' decision needs and public‐sector objectives. This paper explores implications for the practical definition of public‐sector assets.
Review of the Asset Valuation Guidelines of the Steering Committee on National Performance Monitoring of GTEs
Authors: Johnstone D.J. , Gaffikin M.J.R.
Published: January 2009

The asset valuation guidelines of the Steering Committee on National Performance Monitoring (1984) impose on GTEs a truncated and poorly represented form of CCA, with no apparent appreciation of the reasons on which this framework was previously rejected in the private sector. The only tacit recognition of these earlier events is in the guidelines' avoidance of the term “CCA” in favour of the more seductive “deprival value”. By averting rather than building on the CCA debate, the guidelines lack integrity as well as coherence.
Corporate Governance Disclosure in Australia: the State of Play
Authors: Carson Elizabeth
Published: January 2009

Corporate governance has been proposed as a general prescription to remedy the excesses of the 1980s. The Australian Stock Exchange has embraced this view and has imposed a new listing rule, applying from 30 June 1996. This study examines the current level of corporate governance disclosure in light of advance warning of this listing rule in September 1994 and international best practice. Factors which influence levels of voluntary corporate governance disclosure, such as size, auditor and overseas listing, are also examined.
Regulation of Corporate Governance: Will it Improve Corporate Performance?
Authors: Stapledon G.P.
Published: January 2009

In 1995, the New South Wales Court of Appeal handed down a significant judgment on directors' duties in Daniels v Anderson1(the AWA case), following the landmark decision of Rogers CJ (Comm. D.)2. In the same year, the Australian Stock Exchange introduced a listing rule under which listed Australian companies will for the first time be required to disclose their corporate governance practices. This article places the important decision in AWA and the ASX's corporate governance rule in the context of recent research in the United States on whether there is a link between corporate governance and corporate performance.
Analysing the Statement of Cashflows
Authors: Sharma Divesh
Published: January 2009

Australian public companies have been required to report a statement of cashflows since 30 June 1992. Since then, little has been written on the usefulness of the cashflow statement. This paper suggests some cashflow ratios and explores the usefulness of the statement through a financial analysis of Brash Holdings Ltd. The paper particularly emphasises cashflow ratios derived wholly from the statement of cashflows and suggests that ratios derived in this way are a useful analysis tool. The application to Brash Holdings also serves as a useful pedagogic instrument for financial analysis using cashflow and accrual information.
Implementing ABC: An Australian Feasibility Study
Authors: Dikolli Shane , Smith Malcolm
Published: January 2009

Activity‐based costing systems have been one of the most important innovations in accounting practice in recent years, yet we know little about the practical difficulties associated with the design and implementation of such systems. This study examines the objections put forward in the management accounting literature, which suggest that costs outweigh benefits in ABC implementations. The arguments are developed in the context of an Australian feasibility study. Encouraging lessons from the study suggest that a systematic approach to the implementation of ABC will yield significant benefits.
The Use and Representational Faithfulness of Graphs in Annual Reports: Australian Evidence
Authors: Mather Paul , Ramsay Alan , Serry Alan
Published: January 2009

Effective communication of information using graphs depends on the graphs being constructed so that they faithfully represent the underlying data. If certain principles of graphic construction are violated, graphs will be distorted and may mislead users of financial statements. The paper develops and tests hypotheses concerning the relationship between the use and construction of graphs in the annual reports of companies and the performance of those companies.
An Empirical Investigation Into the Audit Engagement Letter: Use, Content and Effectiveness
Authors: Carey Peter J. , Clarke Brian , Smyrnios Kosmas X.
Published: January 2009

The Engagement Letter documents the scope of the audit and the responsibilities of both auditor and client, and thus is both contractual and informative in nature. A survey of 600 auditors and 300 listed public company managers investigated the use and effectiveness of a broad range of Engagement Letter items. Findings show that public company managers regard Engagement Letter items as significantly less important than do auditors. Differences between auditors and their clients in their assessment of the importance of these items might suggest misunderstanding. Consistent with the expectation gap literature, it is likely that auditors can improve their communication, perhaps through expanding on and clarifying the importance of particular items to clients.
Performance Evaluation of Audit Assistants in Chartered Accounting Firms
Authors: Perera Sujatha , Fatseas Vic , Luckett Peter
Published: January 2009

The development of efficient and competent staff in accounting firms is enhanced by the use of formal performance evaluation systems. This paper reports on a study which examined the objectives and uses of performance evaluation, the methods used, the dimensions evaluated, the development of overall assessments, the provision of feedback and the perceived strengths and weaknesses of the systems in use. In general, the performance evaluation process in these firms is effective, but there is scope for improvement in a number of areas.
The Downside of Harmonisation Haste: The Equity Accounting Experience
Authors: Miller Malcolm C. , Leo Ken
Published: January 2009

While the main harmonisation objective of legalising the use of equity accounting in the consolidated financial statements has been achieved to the relief of Australian business, the Australian standard‐setting boards have had less success in harmonising the detailed application and implementation rules. With no clear conceptual direction, they appear to have arbitrarily adhered to, and deviated from, international precedents on ancillary issues of significance to the users and preparers of financial statements.
What Directions from Wallis?
Authors: Hogan Warren
Published: January 2009

Pressed for time, the Wallis inquiry may not have been able to consider fully the implications of proposed changes to Australia's system of financial supervision and regulation. Experience in this and other economies provides little evidence of the benefits in proposals such as the creation of a single prudential regulator or the relaxation of bank merger restrictions.
The Certified Public Accounting Profession in China: Its Development and Impact on Financial Control of Business Operations
Authors: Aiken Max , Ji Xu‐Dong , Lu Wei
Published: January 2009

Accounting reforms leading towards the internationalisation of Chinese accounting practices are being accelerated by the development of the certified public accountants (CPA) system, re‐introduced in China in 1980. The impact of the Chinese CPA system on foreign CPAs attempting to enter the Chinese CPA profession points to issues of concern for Western business people as a whole. There is considerable potential for conflict between the traditional independence of the CPA profession in western countries and the Chinese acceptance of control by powerful government agencies.
Organisational Change and Responsive Management Accounting Practice
Authors: Emsley David
Published: January 2009

The primary purpose of management accounting is to help maintain organisational control (Emmanuel, Otley and Merchant 1990). However, different types of problems can be controlled in different ways (of which the management accounting system is one). Organisational control probably becomes most problematic when a fundamental change, such as total quality management, is introduced because problems can manifest themselves in new and unexpected ways. This article uses two complementary field studies to argue that management accountants need to understand these different types of control problems, how they change when TQM is introduced and how they can be controlled.
Multi‐disciplinary Professional Practice: Recent Developments and Attitudes of Accounting and Legal Practitioners
Authors: Boujos Jocelyne , Scully Glennda
Published: January 2009

Recent developments in the professional accounting market and by the New South Wales legal profession indicate increasing pressure to consider multi‐disciplinary professional practice in some form or other. Two of the Big Six accountants have launched new legal firms. In NSW, legislation has been amended to permit solicitors and other professionals, for the first time in Australia, to share their income. Australian legal and accounting professionals must seriously consider whether, and how, to facilitate the formation of multi‐disciplinary partnerships (MDPs) where members of different disciplines combine to service clients' needs and share commercial profits.
The Function of the Auditor‐General: Independence, Competence and Outsourcing – the Policy Implications
Authors: HOUGHTON KEITH A. , JUBB CHRISTINE A.
Published: January 2009

Privatisation, outsourcing or restructuring the public‐sector audit office in Victoria will have implications ‐ economic, political and even moral. The authors believe that a more competitive system will, if operational independence can be put in place, bring significant benefits to the people of Victoria and will be a model for other jurisdictions. While the implications are enormous, the challenges that will need to be dealt with are just as great.
Accounting for Forestry Assets: Current Practice and future Directions
Authors: HERBOHN KATHLEEN F. , PETERSON RONALD , HERBOHN JOHN L.
Published: January 2009

Discussion Paper 23 and Exposure Draft 83, dealing with self‐generating and regenerating assets, have been positive steps in the development of accounting for foresty operations. DP 23 was successful in canvassing a wide range of relevant issues. Its most significant recommendations relate to the measurement of foresty assets ‐ but there emerges a problem: no concepts statement on measurement generally has been developed and in its absence the DP 23 and ED 83 recommends ti0 ns appear premature.
Standard‐setting in Australia: Implications of Recent Radical Reform Proposals
Authors: COLLETT PETER , GODFREY JAYNE , HRASKY SUE
Published: January 2009

We examine the implications of the Howard government's Corporate Law Economic Reform Program as they relate to accounting standard‐setting in Australia. A luck of systematic and compelling evidence for wholesale changes to the existing standard‐setting process is identified, as is a fundamental shift in the rationale for standard‐setting which underlies the proposed changes. We disagree with the main plank of the proposals, that is, that international accounting standards should be adopted in Australia.
Harmonising with Overseas Accounting Standards: A New Zealand Perspective
Authors: BRADBURY MICHAEL E.
Published: January 2009

Standard‐setting in New Zealand has graduated from the early wholesale adoption of overseas pronouncements to an autonomous approach which recognises unique characteristics of the country's legislation and culture. However, close cooperation is observed with Australian standard‐setting.
Measuring the Degree of International Harmony in Selected Accounting Measurement Practices
Authors: EMENYONU EMMANUEL N. , ADHIKARI AJAY
Published: January 2009

This research assesses empirically the extent to which selected accounting measurement practices of companies from France, Germany, Japan, the UK and the US are harmonised in the context of major international efforts to enhance the comparability of company financial statements. The findings suggest that significant differences continue in accounting measurement practices between companies originating in each of these countries. The results of the study have important implications for international standard‐setters, investors, creditors and those interested in international accounting.
Managerial Evaluations of the Relevance of Cash vs Accrual‐based Financial Reports in the Australian Food Industry
Authors: JONES STEWART , SHARMA ROHIT , MOCK KERRY
Published: January 2009

Many authors have argued that a cashflow statement prepared under the direct method is a superior decision‐making tool because it avoids perceived measurement and classification pitfalls associated with conventional accrual‐accounting procedures. This article investigates comparative decision‐usefulness ratings of the cash flow statement, profit‐and‐loss statement and balance sheet by a sample of accounting managers and executives. The ratings were further compared against firms' management accounting systems. Results suggest that the cashflow statement may be a complementary source of financial information for managers and may enhance the usefulness of information in accrualbased financial reports and management accounting systems.
Gender Imbalance in the Workforce: An Examination of the Public Accounting Profession
Authors: HODDINOTT MARK , JARRATT DENISE G.
Published: January 2009

This paper reports on a study of gender bias in the public accounting profession. The research confirms that “institutionalised” gender discrimination takes place in the profession as a result of the existence of organisationa1 structures that foster advancement through a filter built upon male lifestyles and expectations. It also finds that women's career advancement in the profession is inhibited because opportunities for promotion become available at times when female practitioners are taking leave to begin families.
The Pivotal Role Of Accounting Concepts In The Development Of Public Sector Accounting Standards
Authors: McGREGOR WARREN
Published: January 2009

Perhaps the most important decision made by the Public Sector Accounting Standards Board was taken soon after it was formed in 1983. That decision was to adopt a conceptual approach to the development of public‐sector accounting standards. This paper explores the implications for the reform of public‐sector financial reporting practices in Australia.
The Role of Present Value‐based Measurement in General Purpose Financial Reporting
Authors: HAMPTON GEORGE
Published: January 2009

Accounting theorists have advocated different measures of the elements of general purpose financial reports. Australian accounting standards currently permit those elements to be measured in a number of ways. At present there is no Australian concepts statement dealing with the topic of measurement. This article examines the proposition that present value‐based measurement ought to be, in the context of the Australian conceptual framework, adopted as the “prefewed” conceptual basis of measurement.
Unit Trust Investment Products: Is the rate of return reported by fund managers to investors reliable and comparable?
Authors: PINNUCK MATTHEW
Published: January 2009

Funds under management in retail unit trust investment products have grown tenfold in the past decade and now represent the savings of some 1.5 million retail investors. These investors cannot specifically command the infomation they require and consequently rely on what the market provides. This paper provides some evidence that because of a lack of independent verification and mandated standards the investing public cannot be certain that reported rates of return are either reliable or comparable.
Financial Covenants in Australian Bank‐Loan Contracts: Incidence, Measurement Rules and Monitoring
Authors: MATHER PAUL
Published: January 2009

This paper reports the results of an interview survey of 48 Australian bank lending officers on the use of financial covenants in bank‐loan contracts. A wide variety of financial covenants appear to be used. As expected, the accounting measurement rules were generally conservative in nature but they appeared to be less restrictive in other areas. The results were compared with similar studies of Australian public‐debt contracts and US and UK bank‐loan contracts and considerable cross‐market diversity was noted. Evidence on the frequency and method of monitoring these covenants is also documented.
The Australian Accounting Role In Developing Assurance Services
Authors: NUGENT MICHAEL
Published: January 2009

Between March 1998 and March 1999, the Australian accounting bodies committed resources to a Research and Innovation Board (RIB) to develop new and emerging services for members to deliver to their clients. While it was active, RIB developed processes to identifi, select, develop and promote new services, in particular assurance services; monitored and contributed to international developments; and commenced a program of communication and change management within the profession. RIB was dismantled in March 1999 and each body is now adopting its own processes to develop sewices for members.
Accountancy as Computational Casuistics
Authors: FRANKLIN JAMES
Published: January 2009

If a company's share price rises when it sacks workers, or when it makes money from polluting the environment, it would seem that the accounting is not being done correctly, since real costs are not being paid. This article argues for a synthesis of ethics with accountancy's tradition of quantification, which would allow ethical rights to become legally enforceable.
Recognition of Reserve Values in the Extractive Industries
Authors: MIRZA MALIK , ZIMMER IAN
Published: January 2009

An issue that focuses clearly on the difference between market and book values is accounting for reserves in the extractive industries. The primary determinant of the value of a minerals or oil‐and‐producer is the value of the reserves it controls. Hence, one might expect that managers acting to maximise the value of the firm would try to account for the value of reserves in a credible way. However, we show that financial‐statement recognition of reserve values is rare. We review the reasons for the general reluctance to recognise reserve values in financial statements and comment on the few exceptions.
Accounting for Pre‐production Costs: Extracting Consensus
Authors: GERHARDY PETER G.
Published: January 2009

Accounting for the extractive industries has recently been added to the work program of the LASC, suggesting that Australian standard‐setters will soon reconsider the relevant Australian standards. The method to be used to account for pre‐production costs is likely to be a major concern in these deliberations. This paper discusses the available alternative accounting methods, including the change in regulation that SAC 4 would suggest is required. The paper reviews the development of the existing standard and presents evidence of significant diversity in mining companies' accounting practices. With this background in mind, the future of accounting regulation in the area is considered.
Expertise and Knowledge Management in Public Accounting Professional Services Firms: A North American Perspective
Authors: GIBBINS MICHAEL , WRIGHT ARNOLD M.
Published: January 2009

This article identifies significant knowledge management issues experienced by North American professional services firms, obtained from a review of the literature and from interviews conducted with senior partners in three of the Big 5 firms. Professional services firms face demanding client needs in a rapidly changing global business envimnment. They must have a talented, diverse professional staff and be able to share and leverage the knowledge of this staff. The critical resource that the firms sell is knowledge. Knowledge management is at the core of this process.
Is Australia Moving Too Far Ahead of The United States in the Convergence to International Accounting Standards?
Authors: SHARPE MICHAEL
Published: January 2009

To understand Australia's position in financial reporting, it is necessary to examine the global environment in which the financial reporting of all countries is evolving. This article describes that global environment and Australia's policy and progress before answering the question of whether Australia is moving too far ahead of the United States in the convergence to international accounting standards (MS).
Green Strategy Costing: Early Days
Authors: PARKER LEE D.
Published: January 2009

Environmental impact and management is becoming a major priority for corporate strategists. while considerable information on corporate environmental disclosure practices in annual reports is now available, little is known about the internal environmental decision and control information systems in use, and corporate attitudes particularly to environmental costing. This paper reviews international green strategy developments and their implications for management accounting practice and examines environmental information and costing approaches and attitudes in a small number of Australian companies.
A Conceptual Basis for a Recoverable Amount Test
Authors: HAMPTON GEORGE , PLUMMER KAY
Published: January 2009

Indecision, disagreement and confusion surround the literature on and accounting standards relating to a recoverable amount (RA)test and discussion about the appropriateness of discounting expected net future cashflows in the determination of RA. While a RA test is widely used in accounting standards, the concept and test in the professional literature and accounting standards is vague and ambiguous. Consequently the test is difficult to interpret and analyse rigorously. There is a need for an explicit conceptual basis to support accounting standards and practice relating to a RA test.
Lessons for Accounting Measurement from Transaction Cost Economics
Authors: MUMFORD MICHAEL J.
Published: January 2009

The AARF's Monograph 10 “Measurement in Financial Accounting” maintains the impetus built up over recent years through the foundation's inquiries into the nature and processes of published financial reports. This commentary concentrates upon two major aspects of financial reporting that are not fully addressed in the Monograph. The first is the general lesson that transaction cost economics offers to those who rely on cuwent market values in preparing accounts for publication. The second is the need for standard‐setters to agree on a workable definition of financial performance, since the income statement is more likely than the balance sheet to offer information needed for making useful predictions.
The Impacts of Enterprise Resource Planning Systems on Accounting Practice – The Australian Experience
Authors: BOOTH PETER , MATOLCSY ZOLTAN , WIEDER BERNHARD
Published: January 2009

This paper reports on the enteqbrise resource planning (ERP) systems experiences of Australian companies. It examines the degree of information system integration and associated benefits that respondent companies believe they have achieved, and the impact of ERP systems on the adoption of new accounting practices. The results indicate that while ERP users report high levels of information integration for many functional areas, the pattern is similar to that of non‐ users. Also, ERP systems seem to perform better in transaction processing and ad hoc decision‐ support than in sophisticated decision‐support and reporting. Finally, ERP systems were found to have little influence on the use of new accounting practices.
Using Reference Models within the Enterprise Resource Planning Lifecycle
Authors: ROSEMANN MICHAEL
Published: January 2009

ERP‐specific reference models describe on a conceptual level the structure and functionality of enterprise resource planning solutions. However, these models focus on depicting executable processes and do not take into account tasks related to business engineering, system selection, implementation or change. This paper discusses how reference process models can be used within the entire ERP lifecycle. All phases of the ERP lifecycle have individual requirements for the management of the relevant knowledge. It will be shown how extended reference models can serve as a knowledge repository for enterprise resource planning. This paper includes several pragmatic recommendations for managers involved in ERP projects.
Auditing SAP R/3 – Control Risk Assessment
Authors: BEST PETER
Published: January 2009

This paper provides an introduction to auditing in an SAP R/3 environment, focusing primarily on the assessment of control risk. A number of distinguishing characteristics of the SAP R/3 system that affect the audit are described. The application of a standard internal control framework to the assessment of application controls is illustrated. Two significant pervasive general control areas are examined ‐ system development and program maintenance, and user access control. Relevant controls in these areas are discussed and methods for auditing these controls are outlined. Several opporhcnities for research in the auditing of SAP R/3 are proposed.
Environmental Costing: A path to Implementation
Authors: PARKER LEE D.
Published: January 2009

Environmental strategies and their related costs have received little formal attention from Australian accountants. Yet, internationally as well as in Australia, green strategies and their related costs are now being recognised by a range of corporations. In this paper, international corporate examples are reviewed. Environmental cost categories and potential classifications and approaches for decision and control purposes are proposed. The paper offers recommendations for the initial development of environmental costing practices at the corporate level and argues for the importance of developing relevant cost management systems that support environmental strategies and management.
Characteristics of Organisations Using an Audit for Interim Financial Statements
Authors: BAINES ANNETTE , TANEWSKI GEORGE , GAY GRANT
Published: January 2009

This study examines the characteristics of companies that choose to have a full audit of their interim financial statements, as distinct from a review. A cross‐section of 252 firms that had submitted interim financial reports to the Australian Stock Exchange were selected from the Business Review Weekly (BRW) list of top 1,000 companies. A direct logistic regression analysis was undertaken to assess whether voluntarily adopting an audit was related to size (assets), leverage, minority interest, profitability, industry, and whether the company had used a Big‐6 audit firm. The results indicate that the level of leverage is a significant predictor of companies adopting a review, whereas use of a Big‐6 audit firm was associated with conducting an audit. In addition, there is some evidence companies in the financial services industry were positively associated with conducting an audit.
Back‐to‐Back Loans: A Fraud in Transition
Authors: JOHNSON ROD
Published: January 2009

Case law relating to an auditor's detection of fraud has identified three fraud categories: “ingenious”, those that arouse or ought to arouse the auditor's suspicions, and “well‐known frauds”. This paper argues that the extensive publicity given to Bond Corporation's use of back‐to‐back loans in 1988‐89 to siphon $1.2 billion from Bell Resources resulted in this fraud being transfomed from ingenious to well‐known. Detection processes have been developed for well‐known frauds and this paper identifies certain “red flags'” associated with the back‐to‐back loan fraud that should facilitate its detection.
Selective Commercialisation of Public‐Sector Accounting and its Consequences for Public Accountability
Authors: Karan Ram
Published: January 2009

This paper examines the exclusion of two accounting standards from the commercialised public‐sector accounting model in Australia. It locates the commercialisation in the wider context of the global neo‐liberal reform ideology and argues that the selective commercialisation is a product of the neo‐corporatist standard‐setting process and policy networks that can be explained by public choice and agency theories. It is found that the exclusions have resulted in a significant erosion of public accountability. As implementing the excluded standards will constitute a contradiction in policy, abrogation of the commercialised accounting model might be feasible and appropriate
True and Fair — An Imaginary View
Authors: Leibler Mark
Published: January 2009

The recent collapses of major Australian corporations and the human and economic consequences have emphasised the need for a new approach to auditing in Australia to fix the culture of complacency. The challenge is to continue to persuade directors, auditors and ASIC to better understand what the law requires, and to pressure government to create the conditions to ensure that ASIC undertakes appropriate enforcement.
Public‐Sector Accounting: A Common Reporting Framework?
Authors: Newberry Susan
Published: January 2009

Those debating the issue of public‐sector accounting typically fall into two camps: one camp argues that there should be no distinction between the public sector and the business sector; the other argues that some business‐sector practices are inappropriate for the public sector. This paper identifies an important omission in each of these arguments and calls on each camp to clarify its position.
Corporate Reporting and Urgent Issues Group Abstracts: The Impact of UIG 4 ON THE Australian Extractive Industries
Authors: Hardy Martine , Frost Geoffrey R.
Published: January 2009

The Urgent Issues Group (UIG) was established in 1994 to overcome the inability of Australian standard‐setters to deal promptly with significant reporting issues. One of its first issues was accounting for restoration obligations, with the subsequent issue in August 1995 of UIG Abstract 4Disclosure of Accounting Policies for Restoration Obligations in the Extractive Industries.This study reports on the effect of the introduction of UIG 4 on the reporting practices of companies in the extractive industries. Despite an increase in the number of companies disclosing their accounting policy and the level of information provided, the comparability, and therefore usefulness, of disclosure after the introduction of UIG 4 is still questionable.
Internal Reporting of Derivatives: Some Australian Evidence
Authors: Matolcsy Zoltan P. , Petty John D.
Published: January 2009

This paper provides evidence on the internal reporting of derivatives by Australian non‐banking companies. The key findings, based on a survey of the top 100 Australian companies, are: (i) most companies have well established policies and procedures to deal with derivatives; (ii) for most companies the board of directors and the external auditors receive only monthly reports on derivatives, limiting their ability to monitor continuously the firms' exposure to derivatives; and (iii) none of the companies continuously revalues its derivatives and assesses the risks associated with its exposure, with more than half of the companies evaluating their exposures less frequently than weekly.
The Progression from Voluntary to Mandatory Derivative Instrument Disclosures – Look Who's Talking
Authors: Chalmers Keryn
Published: January 2009

The growth of derivative markets over the past decade suggests that many entities are using these instruments. The transparency of firms' exposures and their accounting treatment have become critical issues, particularly given the media attention to derivative‐related losses by some high‐profile corporations. This paper focuses on derivative instrument disclosures during a three‐phase disclosure regime — pure voluntary disclosure (1992–94), coercive voluntary disclosure (1995–97) and mandatory disclosure (1998). The time frame provides an insight into firms' and regulators' responses to information demands by stakeholders. Increases in disclosure of information, even if incomplete, are particularly noticeable in 1995, the beginning of the coercive regime, and in 1998 when the disclosures became mandatory.
AASB 1037 Sows the Seeds of Change: A Survey of SGARA Measurement Methods
Authors: Dowling Carlin , Godfrey Professor.Jayne
Published: January 2009

International developments are set to reignite the controversy over how self‐generating and regenerating assets (SGARAs) are measured. The International Accounting Standards Committee is working on an international accounting standard on agriculture due to be effective some time after 1 January 2002. The standard is expected to be similar to AASB 1037 Self‐Generating and Regenerating Assets. This is an interesting development since the Australian Accounting Standards Board was urged to not move ahead of international developments when it released Exposure Draft 83 Self‐Generating and Regenerating Assets

This paper surveys Australian SGARA measurement practices to assess the extent of reporting change required by AASB 103 7 and its international counterpart.
Pension Accounting: How Large Australian Companies are ‘Paying Up’ for Superannuation
Authors: Gordon Isabel
Published: January 2009

In Australia accounting requirements for companies to report on superannuation fund costs substantially lag those overseas and are unsettled. Superannuation commitments for defined‐benefit funds are required to be disclosed by sponsoring employers, although corporations are not required to disclose interests in defined‐contribution funds. This paper documents the extent of companies' annual report disclosures of interests in defined‐benefit superannuation funds. The paper also reviews the debate on pension accounting overseas and examines the impact of AASB 1028 on the reporting practices of sponsoring firms.
Internally Generated Intangible Assets: Framing the Discussion
Authors: Jenkins Edmund , Upton Wayne
Published: January 2009

Two assertions dominate discussions about the intersection between the new economy and business and financial reporting. First, the economy of 2001 is fundamentally different from the economy of 1950 and before. Second, traditional financial statements do not capture — and may not be able to capture — the value drivers that dominate the new economy. Improved business and financial reporting of the “new economy” will require attention to recognition and measurement in financial statements, increased disclosure of non‐financial performance metrics, and expanded use of forward‐looking information. This paper1 addresses the first of those areas — recognition and measurement of internally generated intangible assets.
Accounting for Identifiable Intangibles — An Unfinished Standard‐Setting Task
Authors: Alfredson Keith
Published: January 2009

Years of debate have failed to produce an Australian consensus on accounting for identifiable intangible assets. The AASB in 1999 re‐affirmed its view that assets such as brand names, mastheads, licences and trademarks have depreciable amounts that are required to be depreciated. Meanwhile, the Australian Securities and Investments Commission has increased the pressure on companies to amortise such assets. Following a submission from the Group of 100 and others in May 2000, the AASB resolved to place the topic back on its work program. Current proposals by the FASB to accept non‐amortisation of goodwill and other intangibles with indefinite lives has “turned up the heat” for further AASB action.
Accounting for Executive Stock Options: A Case Study in Avoiding Tough Decisions
Authors: Coulton Jeff , Taylor Stephen
Published: January 2009

We review the development of accounting requirements for executive stock options (ESOs) and find that the standard‐setting process has been susceptible to pressure groups including the corporate sector, politicians and even the accounting profession itself. The failure of Australian and overseas accounting regulators to take tough decisions may have created a systematic bias towards the use of ESOs which can result in grossly inefficient compensation structures motivated by a desire to maximise reported profits rather than to create optimal managerial incentives. We conclude that most of the arguments against recognition of stock option expense can be dismissed as blatant self‐interest at worst, or remarkably muddled thinking at best.
Option Awards for Australian CEOs: The Who, What and Why
Authors: Coulton Jeff , Taylor Stephen
Published: January 2009

The compensation structure for Australian CEOs, and especially the extent to which they receive executive stock options, is explored. Evidence suggests that the award of executive stock options is common in Australia, but not in as systematic a manner as has been documented for US CEOs. Where ESOs are awarded, they form a significant component of total compensation, even allowing for limitations in the way we approximate their value. Modelling the use of ESOs shows relatively few empirical regularities, other than a positive association between firm size and ESO use. This is consistent with a view that ESOs are a form of “rent extraction” by CEOs, but it may also reflect a bias towards their use created by accounting rules.
How Do Investors Regard ESOs?
Authors: Brown Philip , Yew Elissa
Published: January 2009

All top‐50 and more than 80% of the top‐500 Australian listed companies now reward their executives with stock options (ESOs) of one kind or another.1 We address the question: “Which method of accounting for ESOs — current practice, the US FASB's recommended practice or the AASB's preferred position — most closely reflects investors' pricing decisions?” We answer the question using models that relate a company's stock price to its earnings and book value of equity calculated according to these three choices of accounting treatment.
Are Annual Reports of Government Agencies Really ‘General Purpose’ if They do Not Include Performance Indicators?
Authors: Walker R. G.
Published: January 2009

How can anyone ensure that performance indicators are relevant and reliable (let alone appropriate, consistent, comprehensive, timely and understandable)? Should there be accounting standards for calculating costs of “outputs” or unit costs of services? And can performance indicators really be audited? The author reflects on recent experience in the compilation of performance indicators for the general government sector.
Auditor Independence: Problems and Solutions
Authors: Monroe Gary S.
Published: January 2009

Gary S. Monroe
The Ramsay Report and the Regulation of Auditor Independence in Australia
Authors: Hayes Colleen
Published: January 2009

This paper provides an overview of key recommendations contained in the Ramsay Report (2001), “Independence of Australian Company Auditors”, vis‐à‐vis current Australian requirements and the overseas developments on which they are based. Specific reference is made to the United States Securities and Exchange Commission “Rules on Audit Independence”, released in November 2000, and the proposals contained in the International Federation of Accountants Ethics Committee's re‐exposure draft, “Independence—Proposed Changes to the Code of Ethics for Professional Accountants”, released in April 2001.
A Review of the Proposals for Reform of Independence of Australian Company Auditors
Authors: Culvenor Jane , Stokes Donald , Taylor Stephen
Published: January 2009

The Ramsay Report on the Independence of Australian Company Auditors, released in October 2001, contains a review of the current Australian requirements and proposals for reform of the rules and regulations governing auditor independence. In this paper we provide a critical examination of these proposals, in conjunction with any underlying rationale offered in the report. Assuming the onus of proof rests with the proponents of change, we argue that the justification for regulatory change is not well made. We pose a series of questions about the proposals and their potential economic consequences. Many of these questions are empirical and provide opportunities for further research.
An Australian Response to Recent Developments in the Market for Audit Services
Authors: Houghton Keith A. , Jubb Christine
Published: January 2009

Where the quality (both competence and independence) of an audit is tested, often in the circumstance of a corporate failure, auditors frequently have good defences as to their competency but rarely do they have equally convincing defences for the objectivity of their decisionmaking or the independence of their audit. This paper recommends that large audit firms establish an independence board with the authority to define, review and decide upon all threats and potential threats to independence. It would also have responsibility for quality‐control and educational programs in respect of audit firm's independence decision‐making.
A Formal Model of Auditor Independence Risk
Authors: Turner J. L. , Mock T. J. , Srivastava R. P.
Published: January 2009

Although the literature on auditor independence is extensive, an accepted comprehensive theory, framework or model of auditor independence risk does not exist. This paper develops a formal model of auditor independence risk that may be used to begin a more rigorous investigation of auditor independence and various factors that are thought to affect this risk. Overall, our analytical results show that integrity is the key variable in minimising independence risk. In addition, in cases where integrity could be questioned, independence risk is positively affected by professional standards that are perceived to be effective and potentially negatively affected by certain client characteristics and auditor incentives.
Towards a Comprehensive Framework for Environmental Management Accounting — Links Between Business Actors and Environmental Management Accounting Tools
Authors: Burritt Roger L. , Hahn Tobias , Schaltegger STefan
Published: January 2009

This article develops a comprehensive framework for environmental management accounting (EMA) linking business actors and EMA tools. The proposed framework provides structure for managers to understand and assess the variety of environmental management accounting tools that have been developed to date, with the intention of encouraging their adoption. The framework systematically integrates two major components of environmental management accounting — monetary environmental management accounting (MEMA) and physical environmental management accounting (PEMA). It highlights the past/future and short/long‐term time dimensions of the different tools, and the regularity of information generation, before concluding with a brief discussion about choice of the most important EMA tools.
The Effect of Client Fee Dependence on Audit Independence
Authors: Barkess Lyn , Simnett Roger , Urquhart Paul
Published: January 2009

This paper examines the effect of client fee dependence on the independence of audit firms. For the largest 25 audit firms for which fee revenue and total revenue could be determined, three research approaches were used to identify whether inappropriate audit opinions are being issued to large‐fee clients. All situations identified by an audit opinion prediction model as having a high probability of qualification were duly qualified. It was found that for the top 25 audit firms, the level of fee dependence from any one client was substantially below the level suggested in auditing standards. In summary, the investigation was unable to identify any instances of fee dependence impairing the independence of auditors.
Research Methods for Examining Independence Issues: Experimental and Economics‐of‐Auditing Approaches
Authors: Simnett Roger , Trotman Ken T.
Published: January 2009

Recent corporate failures in Australia and overseas have led many to question both the perceived and actual independence of auditors. We believe that it is unlikely that there is a general lack of independence among auditors or, at the other extreme, that there have been no breaches of independence. We suggest the need for research on factors that affect lack of actual independence. Research is also required on what factors affect independence as perceived by users of accounting reports. This paper outlines the research methods issues in the design of such studies.
Revitalising Group Accounting: Improving Accountability
Authors: Clarke Frank , Dean Graeme , Houghton Erne
Published: January 2009

This article questions conventional consolidation accounting's effectiveness as a governance mechanism. Disclosure of the aggregate financial outcomes of a set of related business entities is of commercial importance. Currently that information is disseminated through financial statements underpinned by assumptions contradicting fundamental principles of corporate law and contestable propositions of commercial fact. Corporate accountability could be improved if the traditional approach to consolidation accounting were supplanted by reporting on an individual company basis, with assets marked to market, augmented with a statistical annexure of assets and liabilities of all related entities and a related companies' cross‐claims matrix. Recent revelations related to Enron's collapse reinforce the need for improved corporate group accountability mechanisms.
IASB Standards for Australia by 2005: Catapult or Trojan Horse?
Authors: Haswell Stephen , Mckinnon Jill
Published: January 2009

The Financial Reporting Council has announced a plan to adopt from January 2005 standards issued by the International Accounting Standards Board. The announcement foreshadows the wholesale replacement of Australia's financial reporting protocol. Unless others make a similar decision, Australia will be the only western country in 2005 to have adopted entirely the IASB's accounting standards for both group and single company reporting. We suggest that the cost, apart from changeover expenses, could be a reduction in the quality of financial reports. We believe that attempts by government agencies to downplay problems in international standard‐setting mask a set of political decisions which emphasise expediency, favour larger corporate interests over smaller, and make questionable assumptions about future risks to corporate governance.
Globalisation and the Major Accounting Firms
Authors: Perera Hector B. , Rahman Asheq R. , Cahan Steven F.
Published: January 2009

Driven mainly by deregulation and technological change, globalisation is a common tendency among firms seeking better opportunities and lower costs. This paper discusses the nature of globalisation in accounting firms, in particular the “Big 5” (the paper was written before the Big 5 became the Big 4). The firms seem to exhibit two forms of the phenomenon: establishment globalisation (spread of a firm's establishments in different locations) and product globalisation (addition of new services in a bid to extend global reach). The paper examines the effect of globalisation on the demand for accounting information and how globalisation transforms the major accounting firms.
A Revised Lesson for Accounting Measurement from Transaction Cost Economics
Authors: Shailer Greg , Wilson Mark
Published: January 2009

This paper disputes the view, put forward in an earlier issue of Australian Accounting Review, that transaction cost economics (TCE) shows that market values of assets are not appropriate in balance sheets and that the usefulness of balance sheets is therefore diminished. This view ignores the role of production costs, complexity and contracting costs in asset‐ownership decisions, which reflect various incentives, including a trade‐off between production costs and transaction governance costs. In fact, TCE theory lends some support to the provision of market values.