Australian Accounting Review最新文献

We examine whether the quarterly filing COVID-19 disclosures reduce uncertainty for investors and analysts. We find a negative relationship between COVID-19 disclosure and return volatility, suggesting COVID-19 disclosure reduces investor uncertainty. This reduction effect concentrates mainly during the short window following 10-Q releases and phases out over time. We then detect that industry-wide COVID-19 disclosure dispersion is positively associated with return volatility, suggesting high variation of industry-wide COVID-19 disclosures reduces information comparability across firms, resulting in increased investor uncertainty. Moreover, we find that COVID-19 disclosures are positively associated with analysts’ downward earnings forecast revisions and negatively associated with analyst forecast dispersion after 10-Q releases, suggesting the disclosures reduce information risk even for sophisticated market participants. Further analyses show that COVID-19 disclosures are negatively associated with future financial and operational performances (i.e., sales, operating cash flow, operating income and ROA). Lastly, we find that the low readability of COVID-19 disclosure attenuates the negative relation between COVID-19 disclosure and market volatility. Collectively, our findings suggest that 10-Q COVID-19 disclosures contain value-relevant information that temporarily assists market participants in evaluating the changes in firms’ values in the time of a crisis.

Currently, professional football clubs only recognise purchased player contracts (player registrations) in their financial statements. The costs associated with home-grown players are expensed. Furthermore, acquired player registrations must be held under the historical cost model because revaluations are only permitted when an active market for identical intangible assets is available. This is rare and results in a club's most important asset class either being excluded from the balance sheet or carried at outdated amounts. Comparability among clubs is also compromised. Clubs with a player development strategy are disadvantaged in comparison to those that actively purchase established players because they report weaker balance sheets. Additionally, because the development and changes in the value of registrations are not accounted for over time, current revenues are mismatched with expenses related to investments in assets distorting performance assessments. In response, the current paper develops a normative framework for accounting for player registrations designed to provide a more detailed and transparent account of how clubs manage these important assets. The model complements financial statements by incorporating elements of historical cost and fair value whilst maintaining compliance with IFRS. The model's practical application is illustrated using three well-known football clubs namely, Arsenal, Everton and Manchester United.

The purpose of this paper is to examine companies’ business model disclosures in their integrated reports and to explore the possible determinants of more detailed business model disclosures. Content analysis is used to identify disclosure themes in the integrated reports of 40 companies listed on the Johannesburg Stock Exchange. Descriptive statistics are generated for each disclosure theme/item and hypotheses are tested, using non-parametric testing. The results suggest that financial performance does not have a material effect on how companies explain their business model. This is not the case when it comes to environmental performance as firms with strong environmental performance devote more attention to explaining how financial and non-financial elements are managed. This is consistent with an emerging body of research which suggests that higher-quality integrated reporting can be used to lower information asymmetry and reinforce investors’ ability to understand a firm's performance. This paper complements a growing body of work which has considered the determinants of better-quality environmental or sustainability reporting and answers the call for more research on the factors that may influence the nature and extent of disclosures found in an integrated report.

This study examines the association between corporate environmental performance and financial distress. Using a sample of Australian firms, we find that environmental performance is negatively related to the financial distress probability perceived by the market. In addition, the negative association between environmental performance and the financial distress probability is more pronounced for firms with a higher level of risk. The findings provide important empirical evidence regarding the implications of environmental performance on firms’ risk management.

Rounds of corporate collapse linked to failure of transparency in reporting frequently result in governance reforms aimed at audit processes. The 2004 CLERP 9 reforms in Australia were intended to improve standards of auditor independence and thereby enhance auditing practice in general. This study longitudinally examines three sources of archival evidence in an Australian context, before and after the introduction of the CLERP 9 reforms. It finds little support for any success of the CLERP 9 reforms with respect to auditor independence and questions whether lack of auditor independence is in fact a significant causation factor in audit failure.

This paper describes research undertaken to understand current market practice in relation to greenhouse gas (GHG) emission reporting in New Zealand. Our research sampled 237 large New Zealand entities. The results show that 31% of entities were doing some form of voluntary GHG emission reporting. Of the entities reporting GHG emissions, 73% were reporting some Scope 3 emissions. The majority (51%) do not appear to get assurance for their GHG emissions reports. This is a useful benchmark to assess the level and development of GHG emissions reporting in the future. It indicates the approach reporting entities should take if future regulations and standards follow the current market practice.

The purpose of this study is to review how the asset measurement of zoo animals is undertaken. Zoo animals are a zoo's greatest asset, and from its stewardship perspective, its balance sheet should reflect the value of the animals. The asset measurement of zoo animals underpins the ability of zoos to account for the animals they hold via their annual financial reporting. At present, there is no definitive, internationally recognised accounting framework and guidance on asset measurement techniques for zoo animals. The research question of this paper is, therefore: (i) to provide a review of current reporting requirements for zoo animals; (ii) to investigate the types and extent of asset measurement and financial reporting of zoo animals; and (iii) to determine what the commonly used alternatives are. A descriptive survey of existing financial reporting practices is applied to this research to explore the asset measurement techniques of zoo animals by examining published annual reports.

This paper presents a synthesis of academic research focused on First Nations peoples, contrasting First Nations versus non-Indigenous understandings of accounting and accountability. Key themes and trends in past research are identified across 51 publications spanning four decades, and directions for future research are proposed. The need for more culturally responsive accounting is well established, and past studies highlight the inadequacies of reporting practices which do not appear to capture the priorities and nuances of First Nations entities. The focus and execution of accounting research is shifting towards more contemporary experiences with accounting, and the contribution of First Nations worldviews to advances in non-financial reporting. This paper systematically explains the inadequacies of contemporary reporting practices and encourages the accounting community to reflect on future opportunities. It is therefore relevant to both academics and practitioners seeking to uphold the rights of First Nations peoples to self-determination in line with the United Nations Declaration on the Rights of Indigenous Peoples. Further work is urgently required to ensure First Nations organisations are adequately supported in their reporting practices, to incorporate traditional knowledges and to achieve positive outcomes for their communities.

This paper examines the impact of capitalising operating leases on the financial ratios for New Zealand councils (local government). It finds that required financial management and leverage ratios significantly worsen, but by an immaterial amount. In contrast, return on assets significantly increases by a material amount. This extends the constructive lease capitalisation literature to public benefit entities. This paper also discusses the role of councils as both lessees and lessors and that any change to lessor accounting for operating leases would have a greater impact on councils, although likely still immaterial. As a recent exposure draft suggests the convergence of International Public Sector Accounting Standard lease accounting with International Financial Reporting Standard 16, this paper provides timely evidence to standard-setters.

Non-generally accepted accounting practice (non-GAAP) earnings provoke mixed opinions on their usefulness. We provide evidence over a 15-year period that captures changes to accounting standards, economic conditions and regulatory guidance notes on non-GAAP earnings. First, many firms do not use non-GAAP earnings measures, with its popularity peaking at almost 59% in 2012 compared to below 33% in 2004, before decreasing to under 48% by 2018. The most common adjustments are tax, interest and depreciation, consistent with the preference for operating performance metrics. We document an improvement in the frequency of ‘Unknown’ adjustments (those that cannot be reconciled), reaching 32% in 2007, but it was not until 2013 that a significant improvement occurred. As this coincides with the timing of a Financial Markets Authority (FMA) guidance note requiring non-GAAP earnings reconciliations, implying greater disclosure transparency needs clear regulatory guidelines. Second, we find an elevated use of asset impairment, restructuring and fair value adjustments around the Global Financial Crisis (GFC), which suggests managers perceive GAAP earnings have to be supplemented during major economic shocks.