The role of presentation format on decision-makers' behaviour in accounting

The recent increase in researching presentation format area is resulting in an increase in awareness of the importance of presentation format on decision-makers' behaviour. This paper presents a synthesis of prior research on presentation format in the accounting literature which could be used as bases and references for future research. It reviews and evaluates existing accounting literature that examines the linkages of presentation format on decision-makers behaviour. Finally, future research opportunities in this area are made

Employability skills required of accountants

Employability skills have become increasingly important in a competitive job market in a globalised world of advanced technology.Our study examines employability skills of accountants as indicated in job advertisements in Australia and New Zealand, as they provide a window into the skills that are most valued by employers.The results show that of the 31 identified skills, 13 were most cited.Importantly, the most sought after skills included the ability to collaborate with colleagues, present, discuss and defend views, and having a positive attitude.Overall, a team player with a positive attitude and good communication skills appeared to be the most valued behavioural skill as perceived by employers.This probably reflects a change in the work of accountants, from being ‘backroom number crunchers’ to engaged business professionals

Accounting students’ online engagement, choice of course delivery format and their effects on academic performance

This study examines the effects of synchronous and nonsynchronous online engagement on the academic performance of accounting students at a New Zealand university based on their choice of course delivery format – either distance learning or face-to-face learning with online components (F2F+). We track accounting students as they complete three financial accounting courses over three consecutive years. Drawing on social constructivism theory, we find that both synchronous and nonsynchronous student online engagement are positively related to their academic performance, and this positive effect varies across assessment types. The positive effect of synchronous online engagement on student performance is more pronounced when students choose to learn via F2F+ rather than via distance learning. Further analyses show that the positive effect persists among students with different characteristics. These findings highlight the useful role of student online engagement in learning and provide support for universities to allow students to choose their preferred course delivery format

Accounting Profession in Singapore; Professional Accounting in Foreign Country Series

https://egrove.olemiss.edu/aicpa_guides/1692/thumbnail.jp

Classification of foreign operations for financial reporting

The New Zealand standard on foreign currency translation (FRS-21), similar to standards in the US, Australia, and Canada and the International Accounting Standard (IAS-21), requires the classification of foreign operations for translation purposes into two mutually exclusive types: integrated or independent. In judging whether a foreign operation is either integrated or independent, the accounting standard requires the evaluation of five qualitative factors. The standard neither describes the judgement process nor identifies the relative importance of the determining factors. It has been asserted that the lack of clarity in the standard on foreign currency translation may yield dissimilar results for firms whose circumstances are similar and consequently may reduce the comparability of financial statements across firms. Using a repeated measures design, this paper examines the judgement of preparers of financial statements (New Zealand financial controllers) in determining the designation of foreign operations for translation purposes. The results indicate that the relative importance of the determining factors is marginally unequal. No support is found for the assertion that the use of qualitative factors in accounting standards results in dissimilar judgements (lack of consensus) across respondents. Further, the results show that the subjects demonstrated consistency and self-insight in their judgements. Further, the results indicate that the judgements of respondents are not biased toward either classification of foreign operation. This may suggest that the observed bias may be motivated by economic factors rather than the outcome of using the qualitative cues in the accounting standard. When the respondents were debriefed, several of them identified ‘managerial independence’ as another determining factor that has not been included in the NZ standard

An analysis of financial performance of Malaysian-based multinational enterprises

Multinational enterprises (MNEs) have a major influence on contemporary world trade and business. Their dominance is predicted to grow in the future, as greater convergence and integration is achieved in world economies. Generating evidence that further our understanding of their behaviour is, therefore, considered to be an important research priority. This paper examines various aspects of the reported financial performance of Malaysian-based MNEs with emphasis on profitability. The aim is to provide empirical evidence on the nature and magnitude of their reported profitability. It compares the performances of foreign-controlled firms with those of Malaysian controlled firms, and also examines inter industrial differentials in profitability. Data on sampled firms were collected from their annual reports. Statistical analyses were conducted, on three-year average and annual profitability figures of the firms, using exploratory data analytical (EDA) techniques. Formal non parametric statistical tests were then carried out to establish whether there were differences in the performances of foreign controlled and locally controlled firms. Results indicate significant differences in the average performances reported by different groups of Malaysian based MNEs, both in terms of location of control and industrial affiliation. The findings suggest that MNEs' performances could be explained, using a number of characteristics, such as size, industry and location of control

Audit issues and content analysis of audit practices associated with corporate financial reporting on the Internet

The use of the Internet as a channel for the dissemination of corporate information is a recent and fast growing phenomenon. Indeed, it is likely that it will become the principal medium for the distribution of financial information to users. The use of the Internet for financial reporting creates unique opportunities and challenges for the auditing profession. Notwithstanding the significance and urgency of the related auditing issues, relatively little research has been conducted in this area. This study seeks to identify the key audit implications of Internet financial reporting, based on a comprehensive review of the academic and professional literature, and to obtain empirical evidence concerning the nature and extent of audit-related web practices through a content analysis of New Zealand listed company websites. The literature review highlighted issues relating to the role and responsibility of auditors for information placed on corporate websites; the potential for inappropriate association of the auditor’s report with unaudited information located at the auditee’s website, or information linked to/from external websites, and the inappropriate omission of the auditor’s report from the website; the appropriate audit procedures; and the nature, timing, form, and content of the auditor’s report on the Internet. The results of the content analysis of auditor web-related practices reveal several significant concerns for the auditing profession in relation to the presentation, context, and content of the auditor’s report in a web-based environment. Given the currency and significance of the issues raised in this paper, and the lack of current guidance by accounting professional bodies, the results of this study are likely to be of particular value to practicing accountants, accounting regulators, and accounting research

The efficacy of liquidation and bankruptcy prediction models for assessing going concern

Although previous research generally finds bankruptcy prediction models to outperformauditors' views on going concern, accuracy in identifying failing companies is lower. Recent research questions whether bankruptcy is the best proxy for assessing going concern, since filing for bankruptcy is not synonymous with the invalidity of the going concern assumption. Furthermore, in contrast to debtor oriented countries such as the US, liquidation is the most likely outcome of corporate insolvency in creditor oriented countries such as the UK, Germany, Australia and New Zealand. This suggests that bankruptcy prediction models have limited use for assessing going concern in creditor oriented countries. Previous research hasnot recognised this distinction between corporate bankruptcy and liquidation in developing statistical models as an audit tool for assessing going concern. This study examines the efficacy of a corporate liquidation model and a benchmark bankruptcy prediction model for assessing company liquidation. It finds that the liquidation model is more accurate in predicting company liquidations in comparison with the benchmark bankruptcy prediction model. Most importantly. Type 1 errors for the liquidation prediction model is significantlylower than for the bankruptcy prediction model, which indicates its greater efficacy as an analytical tool for assessing going concern. The results also suggest that bankruptcy prediction models may not be appropriate for assessing going concern in countries where the insolvency code is creditor oriented

Corporate financial reporting : firm characteristics and the use of the Internet as a medium of communication

The development of the Internet as a medium for the dissemination of corporate financial information creates a new reporting environment. Extensive literature examines the extent and determinants of voluntary financial reporting through traditional mediums such as paper based annual reports. This paper extends this literature by examining the extent and determinants of voluntary corporate Internet Financial Reporting (IFR) by New Zealand companies. The results indicate that some determinants of traditional financial reporting such as firm size and spread of shareholding are influential determinants of IFR. However, other characteristics such as liquidity do not significantly explain the choice to use Internet as a medium for corporate financial reporting