Pub Date : 2018-01-02DOI: 10.1080/10291954.2017.1414349
R. Nel
Tax reform in South Africa has been extensive since 2011, with the amendment of ‘dividend’ as defined, followed by the introduction of dividends tax and consecutive increases in the applicable tax rates. Extant literature predominantly focuses on periods prior to these reforms and understates the role of taxes in a choice between dividends and share repurchases. The purpose of this article is to enunciate the increased role of taxes in a preference for dividends and share repurchases as a result of tax reform. An exploratory study was performed in which the nominal after-tax value of a R100 dividend or share repurchase was calculated for an individual, corporate and fund investor over a period of tax reform. A tax differential was then calculated to quantify the magnitude of changes over the different periods. Evidence of higher tax differentials from tax reform in 2011, which also resulted in certain tax-induced preferences for dividends and share repurchases. The change in tax-induced preferences is submitted as an indication of the increased role of taxes as a result of the reform. It is submitted that a corporate shareholder is the most affected by the tax reform based on the category taxpayer with the highest tax differentials since the tax reform in 2011.
{"title":"Investor tax-driven preferences for dividends and share repurchases of listed companies","authors":"R. Nel","doi":"10.1080/10291954.2017.1414349","DOIUrl":"https://doi.org/10.1080/10291954.2017.1414349","url":null,"abstract":"Tax reform in South Africa has been extensive since 2011, with the amendment of ‘dividend’ as defined, followed by the introduction of dividends tax and consecutive increases in the applicable tax rates. Extant literature predominantly focuses on periods prior to these reforms and understates the role of taxes in a choice between dividends and share repurchases. The purpose of this article is to enunciate the increased role of taxes in a preference for dividends and share repurchases as a result of tax reform. An exploratory study was performed in which the nominal after-tax value of a R100 dividend or share repurchase was calculated for an individual, corporate and fund investor over a period of tax reform. A tax differential was then calculated to quantify the magnitude of changes over the different periods. Evidence of higher tax differentials from tax reform in 2011, which also resulted in certain tax-induced preferences for dividends and share repurchases. The change in tax-induced preferences is submitted as an indication of the increased role of taxes as a result of the reform. It is submitted that a corporate shareholder is the most affected by the tax reform based on the category taxpayer with the highest tax differentials since the tax reform in 2011.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"32 1","pages":"71 - 87"},"PeriodicalIF":1.1,"publicationDate":"2018-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2017.1414349","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43301695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-01-02DOI: 10.1080/10291954.2017.1409869
G. Steenkamp, N. Wesson
Share-based incentives, which theoretically align executive and shareholders’ interests (agency theory), comprise a significant portion of executive remuneration. Detractors propose that such incentives could allow rent extraction (managerial power theory). To enable proper governance, stakeholders (both shareholders and regulators) need to be aware of the characteristics of share-based incentives. The aim of this study was to evaluate the trends relating to executive share-based incentives, as well as the reliability of available data sources thereof, in South Africa. Firstly, a trend analysis (2002−2015) was done for companies listed on the Johannesburg Stock Exchange. Share options were the most popular share-based incentive until 2008, but were then replaced by share appreciation rights (SARs) and later by full quantum schemes (performance and restricted shares). Compared to global evidence, SARs were popular for longer and full quantum schemes became prevalent later in South Africa. Increased use of full quantum schemes in later years signal improved alignment of executive/shareholder interest (in line with the agency theory). This study, secondly, commented on the reliability of the IRESS financial database in recording share-based incentives, when compared to the annual financial statements (AFS). Numerous discrepancies in IRESS significantly detracted from its usefulness as a sole data source when evaluating executive share-based incentives. Divergent disclosure practices in the AFS increased the risk that executives in South Africa could be utilising share-based incentives to extract rents from companies. It is recommended that regulators should prescribe comprehensive standardised disclosure for share-based incentives.
{"title":"Share-based incentives for South African CEOs: Trends 2002−2015","authors":"G. Steenkamp, N. Wesson","doi":"10.1080/10291954.2017.1409869","DOIUrl":"https://doi.org/10.1080/10291954.2017.1409869","url":null,"abstract":"Share-based incentives, which theoretically align executive and shareholders’ interests (agency theory), comprise a significant portion of executive remuneration. Detractors propose that such incentives could allow rent extraction (managerial power theory). To enable proper governance, stakeholders (both shareholders and regulators) need to be aware of the characteristics of share-based incentives. The aim of this study was to evaluate the trends relating to executive share-based incentives, as well as the reliability of available data sources thereof, in South Africa. Firstly, a trend analysis (2002−2015) was done for companies listed on the Johannesburg Stock Exchange. Share options were the most popular share-based incentive until 2008, but were then replaced by share appreciation rights (SARs) and later by full quantum schemes (performance and restricted shares). Compared to global evidence, SARs were popular for longer and full quantum schemes became prevalent later in South Africa. Increased use of full quantum schemes in later years signal improved alignment of executive/shareholder interest (in line with the agency theory). This study, secondly, commented on the reliability of the IRESS financial database in recording share-based incentives, when compared to the annual financial statements (AFS). Numerous discrepancies in IRESS significantly detracted from its usefulness as a sole data source when evaluating executive share-based incentives. Divergent disclosure practices in the AFS increased the risk that executives in South Africa could be utilising share-based incentives to extract rents from companies. It is recommended that regulators should prescribe comprehensive standardised disclosure for share-based incentives.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"32 1","pages":"46 - 70"},"PeriodicalIF":1.1,"publicationDate":"2018-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2017.1409869","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45027308","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1196528
L. P. Myers
Passing the introductory accounting semester is often seen as a challenge for first year students. Being aware of both effective and ineffective ways of constructing knowledge in a discipline with a hierarchical knowledge structure will be of value to students and teachers alike in assisting in the development of effective styles of learning. This article, which is part of a larger body of research, analyses how students in an introductory financial accounting class at Rhodes University constructed knowledge. Previous research described the course as having a hierarchical knowledge structure. In this research, first year accounting students at Rhodes University were interviewed to gain an improved understanding of how they constructed knowledge in this course. This article describes how students who were successful in passing this semester course used similar, effective ways of constructing knowledge, while students who were not successful also employed similar but less effective ways of constructing knowledge. These different ways of constructing knowledge, both effective and ineffective, were analysed, using the Bernstein’s pedagogic device and Maton’s Legitimation Code Theory. This article provides those involved in teaching and learning in a discipline with a hierarchical knowledge structure, with a theoretical explanation of why some methods of constructing knowledge are more effective than others. Understanding and being explicit about more (and less) effective ways of constructing knowledge in a course with a hierarchical knowledge structure can guide those involved in teaching and learning to improve results.
{"title":"An analysis of how students construct knowledge in a course with a hierarchical knowledge structure","authors":"L. P. Myers","doi":"10.1080/10291954.2016.1196528","DOIUrl":"https://doi.org/10.1080/10291954.2016.1196528","url":null,"abstract":"Passing the introductory accounting semester is often seen as a challenge for first year students. Being aware of both effective and ineffective ways of constructing knowledge in a discipline with a hierarchical knowledge structure will be of value to students and teachers alike in assisting in the development of effective styles of learning. This article, which is part of a larger body of research, analyses how students in an introductory financial accounting class at Rhodes University constructed knowledge. Previous research described the course as having a hierarchical knowledge structure. In this research, first year accounting students at Rhodes University were interviewed to gain an improved understanding of how they constructed knowledge in this course. This article describes how students who were successful in passing this semester course used similar, effective ways of constructing knowledge, while students who were not successful also employed similar but less effective ways of constructing knowledge. These different ways of constructing knowledge, both effective and ineffective, were analysed, using the Bernstein’s pedagogic device and Maton’s Legitimation Code Theory. This article provides those involved in teaching and learning in a discipline with a hierarchical knowledge structure, with a theoretical explanation of why some methods of constructing knowledge are more effective than others. Understanding and being explicit about more (and less) effective ways of constructing knowledge in a course with a hierarchical knowledge structure can guide those involved in teaching and learning to improve results.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"193 - 211"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1196528","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44021583","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1160197
D. Fourie, Wayne Poggenpoel
Public sectors all over the world face challenges and, thus far, public sector reforms have not been very successful. The public sector, as a key component of any economy, needs to address its challenges adequately to prevent economic growth and development from being curtailed. This article hopes to spark debate about whether too much emphasis is being placed on symptoms of public sector challenges instead of addressing these challenges at their root. The article focuses on the South African public sector – a third world country public sector − and examines reports by the Auditor General of South Africa and the Public Service Commission of South Africa for recurring themes and findings. The results of the study clearly suggest that the South African public sector is not yet adequately addressing its challenges at their roots, resulting in the challenges recurring year after year.
{"title":"Public sector inefficiencies: Are we addressing the root causes?","authors":"D. Fourie, Wayne Poggenpoel","doi":"10.1080/10291954.2016.1160197","DOIUrl":"https://doi.org/10.1080/10291954.2016.1160197","url":null,"abstract":"Public sectors all over the world face challenges and, thus far, public sector reforms have not been very successful. The public sector, as a key component of any economy, needs to address its challenges adequately to prevent economic growth and development from being curtailed. This article hopes to spark debate about whether too much emphasis is being placed on symptoms of public sector challenges instead of addressing these challenges at their root. The article focuses on the South African public sector – a third world country public sector − and examines reports by the Auditor General of South Africa and the Public Service Commission of South Africa for recurring themes and findings. The results of the study clearly suggest that the South African public sector is not yet adequately addressing its challenges at their roots, resulting in the challenges recurring year after year.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"169 - 180"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1160197","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44056153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1209724
C. Thiart
The introduction of the Consumer Protection Act 68 of 2008 has had significant implications for the South African commercial arena. This Act forms part of government regulation and is aimed at protecting the rights of consumers. Not only does the Consumer Protection Act 68 of 2008 have a significant impact on the manner in which parties conduct business; it also affects the accounting and taxation treatment of amounts that fall within the scope of the Act. This article investigated the effect of the provisions contained in section 62 to section 65 of the Consumer Protection Act 68 of 2008 on the tax implications of certain amounts. These amounts include lay-bys, prepaid certificates, credits, vouchers and deposits (prepaid amounts). Particular attention was given to the meaning of receipts and accruals within the definition of gross income in section 1 of the Income Tax Act 58 of 1962, and the effect of section 62 to section 65 of the Consumer Protection Act 68 of 2008 on this Act. A literature review of the relevant legislation, terms used therein, and further applicable literature was undertaken. The study concluded with three recommendations in order to align the different items of legislation. The first is to extend section 65 of the Consumer Protection Act 68 of 2008 to include the requirements that must be met to prove that a supplier adheres to the fiduciary duty imposed on it by the Consumer Protection Act 68 of 2008. The South African Revenue Service must consider an amendment to the gross income definition, or specific legislation to this effect. Alternatively, the South African Revenue Service must provide the supplier with its view on and interpretation of section 62 to section 65 of the Consumer Protection Act 68 of 2008 and the applicability thereof on the definition of gross income, as contained in section 1 of the Income Tax Act 58 of 1962.
{"title":"A critical analysis of ‘received by or accrued to’ as contemplated in the ‘gross income’ definition in section 1 of the Income Tax Act with reference to the Consumer Protection Act","authors":"C. Thiart","doi":"10.1080/10291954.2016.1209724","DOIUrl":"https://doi.org/10.1080/10291954.2016.1209724","url":null,"abstract":"The introduction of the Consumer Protection Act 68 of 2008 has had significant implications for the South African commercial arena. This Act forms part of government regulation and is aimed at protecting the rights of consumers. Not only does the Consumer Protection Act 68 of 2008 have a significant impact on the manner in which parties conduct business; it also affects the accounting and taxation treatment of amounts that fall within the scope of the Act. This article investigated the effect of the provisions contained in section 62 to section 65 of the Consumer Protection Act 68 of 2008 on the tax implications of certain amounts. These amounts include lay-bys, prepaid certificates, credits, vouchers and deposits (prepaid amounts). Particular attention was given to the meaning of receipts and accruals within the definition of gross income in section 1 of the Income Tax Act 58 of 1962, and the effect of section 62 to section 65 of the Consumer Protection Act 68 of 2008 on this Act. A literature review of the relevant legislation, terms used therein, and further applicable literature was undertaken. The study concluded with three recommendations in order to align the different items of legislation. The first is to extend section 65 of the Consumer Protection Act 68 of 2008 to include the requirements that must be met to prove that a supplier adheres to the fiduciary duty imposed on it by the Consumer Protection Act 68 of 2008. The South African Revenue Service must consider an amendment to the gross income definition, or specific legislation to this effect. Alternatively, the South African Revenue Service must provide the supplier with its view on and interpretation of section 62 to section 65 of the Consumer Protection Act 68 of 2008 and the applicability thereof on the definition of gross income, as contained in section 1 of the Income Tax Act 58 of 1962.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"255 - 268"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1209724","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46907385","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1199145
W. Badenhorst
The objective of this study is to determine whether the spread in underlying exchange-traded fund (ETF) investments is a significant cause of the premium/discount of the ETF. Spreads of underlying investment portfolios are alternatively calculated using weighted bid-ask and bid-close spreads for a sample of ETFs listed on the Johannesburg Stock Exchange (JSE) in South Africa from 2010 to 2014. Results show that spreads of underlying investment portfolios are positively associated with larger premiums/discounts of ETFs as a whole. However, stratified results show that this relationship exists only for premiums; underlying spreads are not significantly associated with discounts. In addition, the findings show that expense ratios offer a significant explanation for premiums/discounts of ETFs. This paper contributes to the existing literature by offering an explanation for the size of premiums of ETFs at reporting date. Its findings imply that relative illiquidity in the underlying portfolio of the ETF means that a premium will likely persist. A deeper understanding in this regard assists investors in determining whether an ETF premium is worth paying for. In addition, this paper reveals that premiums and discounts of ETFs do not always arise from the same causes and should be investigated as separate phenomena in future research.
{"title":"Premiums and discounts of exchanged-traded funds","authors":"W. Badenhorst","doi":"10.1080/10291954.2016.1199145","DOIUrl":"https://doi.org/10.1080/10291954.2016.1199145","url":null,"abstract":"The objective of this study is to determine whether the spread in underlying exchange-traded fund (ETF) investments is a significant cause of the premium/discount of the ETF. Spreads of underlying investment portfolios are alternatively calculated using weighted bid-ask and bid-close spreads for a sample of ETFs listed on the Johannesburg Stock Exchange (JSE) in South Africa from 2010 to 2014. Results show that spreads of underlying investment portfolios are positively associated with larger premiums/discounts of ETFs as a whole. However, stratified results show that this relationship exists only for premiums; underlying spreads are not significantly associated with discounts. In addition, the findings show that expense ratios offer a significant explanation for premiums/discounts of ETFs. This paper contributes to the existing literature by offering an explanation for the size of premiums of ETFs at reporting date. Its findings imply that relative illiquidity in the underlying portfolio of the ETF means that a premium will likely persist. A deeper understanding in this regard assists investors in determining whether an ETF premium is worth paying for. In addition, this paper reveals that premiums and discounts of ETFs do not always arise from the same causes and should be investigated as separate phenomena in future research.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"212 - 222"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1199145","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44345817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1192328
E. van Wyk, M. Terblanche
Section 12M of the Income Tax Act No. 58 of 1962 allows a normal tax deduction for employers who pay the post-retirement medical contributions by way of lump sum payments on behalf of retired employees. Although a full deduction is granted to the employer for a contribution in terms of section 12M, an area of uncertainty has been identified by the authors of this paper. This area of uncertainty involves the income tax implications for the retired employee upon receipt of such contribution or upon receipt of a benefit regarding such contribution from the former employer. Possible tax implications were considered in terms of paragraphs (a), (c), (d), (f) and (i) of the gross income definition, as well as in terms of paragraphs 2(i) read with 12A of the Seventh Schedule to the Act. A number of binding class rulings and one binding private ruling published by SARS were investigated, supported by a scrutiny of the relevant provisions of the Act. It is concluded that a contribution in terms of section12M(2)(b) will be regarded as a fringe benefit in terms of paragraph 2(i) read with paragraph 12A of the Seventh Schedule to the Act, whilst a section 12M(2)(a) contribution might be a paragraph (c) paragraph (d) or paragraph (f) inclusion in gross income. The latter two might qualify as severance benefits. Lastly, the employee will be entitled to a section 6A(2)(a) medical scheme fees tax credit should the amount be applied for medical contributions.
{"title":"Section 12M contributions in terms of the Income Tax Act No. 58 of 1962: Normal tax implications for the retired employee","authors":"E. van Wyk, M. Terblanche","doi":"10.1080/10291954.2016.1192328","DOIUrl":"https://doi.org/10.1080/10291954.2016.1192328","url":null,"abstract":"Section 12M of the Income Tax Act No. 58 of 1962 allows a normal tax deduction for employers who pay the post-retirement medical contributions by way of lump sum payments on behalf of retired employees. Although a full deduction is granted to the employer for a contribution in terms of section 12M, an area of uncertainty has been identified by the authors of this paper. This area of uncertainty involves the income tax implications for the retired employee upon receipt of such contribution or upon receipt of a benefit regarding such contribution from the former employer. Possible tax implications were considered in terms of paragraphs (a), (c), (d), (f) and (i) of the gross income definition, as well as in terms of paragraphs 2(i) read with 12A of the Seventh Schedule to the Act. A number of binding class rulings and one binding private ruling published by SARS were investigated, supported by a scrutiny of the relevant provisions of the Act. It is concluded that a contribution in terms of section12M(2)(b) will be regarded as a fringe benefit in terms of paragraph 2(i) read with paragraph 12A of the Seventh Schedule to the Act, whilst a section 12M(2)(a) contribution might be a paragraph (c) paragraph (d) or paragraph (f) inclusion in gross income. The latter two might qualify as severance benefits. Lastly, the employee will be entitled to a section 6A(2)(a) medical scheme fees tax credit should the amount be applied for medical contributions.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"181 - 192"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1192328","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49212796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1205248
W. Maroun
This research adopts a normative approach. It builds on the academic literature which argues that the usefulness of financial reporting can be enhanced by aligning accounting for balances and transactions with an organisation’s business model, as presented in its integrated report. This is done using examination fees collected by the South African Institute of Chartered Accountants (SAICA) as an example. The research demonstrates how SAICA’s business model can be used to inform the identification of contracts with customers; the definition of performance obligations and conclude on the timing of revenue recognition under IFRS 15: Revenue from Contracts with Customers. In turn, this provides a useful practical example of how, in general terms, an organisation’s business model can be used to provide a more transparent account of financial performance. The research also makes an important contribution by showing how, without requiring amendments to existing accounting standards, financial reporting can be informed by details on the value creation process explained in a company’s integrated report.
{"title":"Accounting for revenue using an accountability and business model framework: The case of the South African Institute of Chartered Accountants’ professional examinations","authors":"W. Maroun","doi":"10.1080/10291954.2016.1205248","DOIUrl":"https://doi.org/10.1080/10291954.2016.1205248","url":null,"abstract":"This research adopts a normative approach. It builds on the academic literature which argues that the usefulness of financial reporting can be enhanced by aligning accounting for balances and transactions with an organisation’s business model, as presented in its integrated report. This is done using examination fees collected by the South African Institute of Chartered Accountants (SAICA) as an example. The research demonstrates how SAICA’s business model can be used to inform the identification of contracts with customers; the definition of performance obligations and conclude on the timing of revenue recognition under IFRS 15: Revenue from Contracts with Customers. In turn, this provides a useful practical example of how, in general terms, an organisation’s business model can be used to provide a more transparent account of financial performance. The research also makes an important contribution by showing how, without requiring amendments to existing accounting standards, financial reporting can be informed by details on the value creation process explained in a company’s integrated report.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"240 - 254"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1205248","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42718980","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-09-02DOI: 10.1080/10291954.2016.1204148
M. Oberholzer, Dawie Mong, Jan van Romburgh
The purpose of the study was to construct two similar data envelopment analysis (DEA) models. The first contains only published accounting-based data and the second added weighted average cost of capital (WACC), a primary market-based determinant, as an input variable. The efficiency scores of firms according to the two models are compared to determine whether there is a significant difference between the two models’ results. In total, 206 company years were analysed. This includes all the manufacturing firms which published financial statements on the Johannesburg Security Exchange (JSE) from 2011 to 2013. The study found that there is a good chance that the efficiency score of a firm will be significantly lower when WACC is added as a variable. Therefore, ignoring WACC in a general benchmarking DEA model may provide a misleading, too optimistic, sugar-coated answer to firms’ managers with regard to their firms’ relative operating efficiency. The study contributes to the existing body of literature by revealing evidence that WACC is an important component in a DEA model that aims to benchmark firms’ operating efficiency. Therefore, accounting-based data should be used in conjunction with WACC, a primary market-based determinant, which adds a further dimension to the benchmarking model.
{"title":"Towards a new model to benchmark firms’ operating efficiency: A data envelopment analysis approach","authors":"M. Oberholzer, Dawie Mong, Jan van Romburgh","doi":"10.1080/10291954.2016.1204148","DOIUrl":"https://doi.org/10.1080/10291954.2016.1204148","url":null,"abstract":"The purpose of the study was to construct two similar data envelopment analysis (DEA) models. The first contains only published accounting-based data and the second added weighted average cost of capital (WACC), a primary market-based determinant, as an input variable. The efficiency scores of firms according to the two models are compared to determine whether there is a significant difference between the two models’ results. In total, 206 company years were analysed. This includes all the manufacturing firms which published financial statements on the Johannesburg Security Exchange (JSE) from 2011 to 2013. The study found that there is a good chance that the efficiency score of a firm will be significantly lower when WACC is added as a variable. Therefore, ignoring WACC in a general benchmarking DEA model may provide a misleading, too optimistic, sugar-coated answer to firms’ managers with regard to their firms’ relative operating efficiency. The study contributes to the existing body of literature by revealing evidence that WACC is an important component in a DEA model that aims to benchmark firms’ operating efficiency. Therefore, accounting-based data should be used in conjunction with WACC, a primary market-based determinant, which adds a further dimension to the benchmarking model.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"223 - 239"},"PeriodicalIF":1.1,"publicationDate":"2017-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1204148","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41650413","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-05-04DOI: 10.1080/10291954.2016.1160175
S. Smulders, M. Stiglingh, R. Franzsen, L. Fletcher
Small businesses tend to rely on external service providers (tax practitioners, accountants, lawyers and bookkeepers) for assistance with their tax affairs. Payments to external service providers clearly affect a small business’s tax compliance costs. This study uses multiple regression analyses to investigate the key drivers of small business external tax compliance costs. This will assist Revenue Services in understanding what factors (determinants) could increase a small business’s external tax compliance costs and might assist in managing tax compliance behaviour and contribution. Overall, the results show that although the legal form, age, use of small business tax concessions, level of education of the respondents and the type of accounting system used are statistically significant determinants of external tax compliance costs, turnover is the greatest determinant. The results also indicate that external tax compliance costs are regressive in relation to the size of a business, confirming previous research findings in this arena.
{"title":"Determinants of external tax compliance costs: Evidence from South Africa","authors":"S. Smulders, M. Stiglingh, R. Franzsen, L. Fletcher","doi":"10.1080/10291954.2016.1160175","DOIUrl":"https://doi.org/10.1080/10291954.2016.1160175","url":null,"abstract":"Small businesses tend to rely on external service providers (tax practitioners, accountants, lawyers and bookkeepers) for assistance with their tax affairs. Payments to external service providers clearly affect a small business’s tax compliance costs. This study uses multiple regression analyses to investigate the key drivers of small business external tax compliance costs. This will assist Revenue Services in understanding what factors (determinants) could increase a small business’s external tax compliance costs and might assist in managing tax compliance behaviour and contribution. Overall, the results show that although the legal form, age, use of small business tax concessions, level of education of the respondents and the type of accounting system used are statistically significant determinants of external tax compliance costs, turnover is the greatest determinant. The results also indicate that external tax compliance costs are regressive in relation to the size of a business, confirming previous research findings in this arena.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"31 1","pages":"134 - 150"},"PeriodicalIF":1.1,"publicationDate":"2017-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2016.1160175","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47270554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：