An analysis of the financial reporting practices of financially distressed South African listed companies
- Authors: Mangwiro, Evangelista
- Date: 2020
- Subjects: Financial statements , Financial disclosure
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/451885 , uj:39836
- Description: Abstract: Since the introduction of accounting concepts to the current generation, the ultimate responsibility of financial reporting has been to provide users of financial statements with quality financial information that is useful for decision-making purposes. In order to provide such information, the International Financial Reporting Standards (IFRSs) stipulate the type of financial disclosures to be provided by the entity, using the framework for each relevant accounting standard applicable to that entity. Since the rate at which large corporations are plunging into financial distress has increased enormously in recent years, the conditions causing this financial distress pose challenges to management when assessing whether the company is a going concern and to auditors when evaluating the adequacy of its going concern disclosures. The starting point is the financial reporting by management before auditors can audit and users can consider the financial information. It is therefore of utmost importance to examine the financial reporting practices of entities that may be in need of business rescue to identify significant trends in their disclosures that may assist in improving the financial reporting in such cases... , M.Com. (International Accounting)
- Full Text:
- Authors: Mangwiro, Evangelista
- Date: 2020
- Subjects: Financial statements , Financial disclosure
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/451885 , uj:39836
- Description: Abstract: Since the introduction of accounting concepts to the current generation, the ultimate responsibility of financial reporting has been to provide users of financial statements with quality financial information that is useful for decision-making purposes. In order to provide such information, the International Financial Reporting Standards (IFRSs) stipulate the type of financial disclosures to be provided by the entity, using the framework for each relevant accounting standard applicable to that entity. Since the rate at which large corporations are plunging into financial distress has increased enormously in recent years, the conditions causing this financial distress pose challenges to management when assessing whether the company is a going concern and to auditors when evaluating the adequacy of its going concern disclosures. The starting point is the financial reporting by management before auditors can audit and users can consider the financial information. It is therefore of utmost importance to examine the financial reporting practices of entities that may be in need of business rescue to identify significant trends in their disclosures that may assist in improving the financial reporting in such cases... , M.Com. (International Accounting)
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A comparative analysis of African Bank Limited's credit risk disclosure
- Authors: Ramutshila, Mbali Carol
- Date: 2019
- Subjects: Banks and banking - South Africa , Credit - Risk assessment , Financial statements
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/422216 , uj:36021
- Description: Abstract: Banks play an integral role within the financial system of a country and when a bank thrives or fails, this systematically impacts the economy of a country. The curatorship of African Bank by the SARB was an attempt to reduce the losses that would have been experienced by the users (creditors, investors, customers and employees and other banks) of African Bank. The purpose of financial statements in the Conceptual Framework is centred around the users of financial statements, that is, the financial statement should provide relevant information that is useful for decision making purposes such as to invest or not. Thus, the study’s first intent is to determine, through in-depth analysis of African Banks’ credit risk disclosure for the 2009 to 2013 financial periods, whether a pending crisis in the bank could have been detected by users to a certain extent. The second intent is to ascertain whether any lessons had been learnt in the new African Bank for the 2016 to 2017 financial periods... , M.Com. (International Accounting)
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- Authors: Ramutshila, Mbali Carol
- Date: 2019
- Subjects: Banks and banking - South Africa , Credit - Risk assessment , Financial statements
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/422216 , uj:36021
- Description: Abstract: Banks play an integral role within the financial system of a country and when a bank thrives or fails, this systematically impacts the economy of a country. The curatorship of African Bank by the SARB was an attempt to reduce the losses that would have been experienced by the users (creditors, investors, customers and employees and other banks) of African Bank. The purpose of financial statements in the Conceptual Framework is centred around the users of financial statements, that is, the financial statement should provide relevant information that is useful for decision making purposes such as to invest or not. Thus, the study’s first intent is to determine, through in-depth analysis of African Banks’ credit risk disclosure for the 2009 to 2013 financial periods, whether a pending crisis in the bank could have been detected by users to a certain extent. The second intent is to ascertain whether any lessons had been learnt in the new African Bank for the 2016 to 2017 financial periods... , M.Com. (International Accounting)
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Capturing the value of football players in financial reporting
- Authors: Steenkamp, Michael
- Date: 2019
- Subjects: Financial statements , Football players , Human capital - Accounting , Intellectual capital , Intangible property
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/430883 , uj:37157
- Description: Abstract: The accounting for football players is currently not consistent regarding the recognition of players who have been internally developed and those who have been purchased from another club. When a football club purchases the registration rights of a football player, such rights are capitalised as an intangible asset and amortised over the player’s contract period. However, the costs that are incurred in developing home grown players are recognised as an expense and there is no value captured for such players in the financial statements of a football club. There has been previous research on the possible need for the capitalisation of human resources and to place a value on these in the accounting records of an entity, which would include that of football clubs. The accounting principles currently available for accounting for internally generated intangible assets are not likely to change in the short term. Due to this, the need for additional disclosure of non-financial information in the, for instance, integrated report is noted. The objective of this limited scope dissertation is to identify and suggest the most appropriate manner in which to capture the value of football players in financial reporting... , M.Com. (International Accounting)
- Full Text:
- Authors: Steenkamp, Michael
- Date: 2019
- Subjects: Financial statements , Football players , Human capital - Accounting , Intellectual capital , Intangible property
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/430883 , uj:37157
- Description: Abstract: The accounting for football players is currently not consistent regarding the recognition of players who have been internally developed and those who have been purchased from another club. When a football club purchases the registration rights of a football player, such rights are capitalised as an intangible asset and amortised over the player’s contract period. However, the costs that are incurred in developing home grown players are recognised as an expense and there is no value captured for such players in the financial statements of a football club. There has been previous research on the possible need for the capitalisation of human resources and to place a value on these in the accounting records of an entity, which would include that of football clubs. The accounting principles currently available for accounting for internally generated intangible assets are not likely to change in the short term. Due to this, the need for additional disclosure of non-financial information in the, for instance, integrated report is noted. The objective of this limited scope dissertation is to identify and suggest the most appropriate manner in which to capture the value of football players in financial reporting... , M.Com. (International Accounting)
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The adequacy of the new contract-based revenue recognition model for the telecommunication industry
- Authors: Mahmood, Tasneem
- Date: 2019
- Subjects: Revenue - Accounting , Telecommunication - Economic aspects , Financial statements
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/414845 , uj:35004
- Description: Abstract: Revenue is fundamental in assessing an entity’s financial performance and is a significant measure for both internal and external financial reporting. Revenue recognition based on unsound principles could ultimately destroy a company’s value. Recognition refers to the timing of when a transaction is recorded. The problematic issue of when revenue should be recognised has been debated for more than a century. Over the years, the issue has become further complicated by the introduction of intricate customer contracts and complex business models which involve multi-element transactions. In May 2014, the International Accounting Standard Board and the Financial Accounting Standard Board issued a joint revenue recognition standard, IFRS 15: Revenue from Contracts with Customers. The purpose of this new standard was to clarify the principles for recognising revenue and to create a joint converged revenue recognition standard for both IFRS and US GAAP entities. IFRS 15 introduced a 5-step approach to revenue recognition and measurement, which focuses on the principle of the transfer of control when recognising revenue. This new approach to revenue recognition and measurement should not have a significant impact for some entities. On the telecommunications industry, however, this impact has been far more profound. This is chiefly due to the complex nature of the industry’s multi-element arrangements of revenue contracts entered into with customers. This study critically evaluates the adequacy of IFRS 15 for the telecommunications industry using a doctrinal research methodology. This qualitative research method involves a systematic process of gathering relevant facts, identifying, analysing, organising and synthesising legal statues, judicial decisions and commentary to arrive at a conclusion. Although this methodology is typically employed in the legal field, it is also appropriate for accounting research for the following reasons: (i) compliance with International Financial Reporting Standards is written into law through the Companies Act of South Africa; (ii) accounting standards can be considered as doctrines because they consist of rules, principles, norms and guidelines which have been developed and applied through practice, and (iii) doctrinal research has previously been applied... , M.Com. (Accounting)
- Full Text:
- Authors: Mahmood, Tasneem
- Date: 2019
- Subjects: Revenue - Accounting , Telecommunication - Economic aspects , Financial statements
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/414845 , uj:35004
- Description: Abstract: Revenue is fundamental in assessing an entity’s financial performance and is a significant measure for both internal and external financial reporting. Revenue recognition based on unsound principles could ultimately destroy a company’s value. Recognition refers to the timing of when a transaction is recorded. The problematic issue of when revenue should be recognised has been debated for more than a century. Over the years, the issue has become further complicated by the introduction of intricate customer contracts and complex business models which involve multi-element transactions. In May 2014, the International Accounting Standard Board and the Financial Accounting Standard Board issued a joint revenue recognition standard, IFRS 15: Revenue from Contracts with Customers. The purpose of this new standard was to clarify the principles for recognising revenue and to create a joint converged revenue recognition standard for both IFRS and US GAAP entities. IFRS 15 introduced a 5-step approach to revenue recognition and measurement, which focuses on the principle of the transfer of control when recognising revenue. This new approach to revenue recognition and measurement should not have a significant impact for some entities. On the telecommunications industry, however, this impact has been far more profound. This is chiefly due to the complex nature of the industry’s multi-element arrangements of revenue contracts entered into with customers. This study critically evaluates the adequacy of IFRS 15 for the telecommunications industry using a doctrinal research methodology. This qualitative research method involves a systematic process of gathering relevant facts, identifying, analysing, organising and synthesising legal statues, judicial decisions and commentary to arrive at a conclusion. Although this methodology is typically employed in the legal field, it is also appropriate for accounting research for the following reasons: (i) compliance with International Financial Reporting Standards is written into law through the Companies Act of South Africa; (ii) accounting standards can be considered as doctrines because they consist of rules, principles, norms and guidelines which have been developed and applied through practice, and (iii) doctrinal research has previously been applied... , M.Com. (Accounting)
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Mandatory audit firm rotation : a South African perspective
- Authors: Harber, Michael
- Date: 2018
- Subjects: Auditing - South Africa , Corporations - Auditing , Financial statements , Audit committees , Corporate governance - Moral and ethical aspects
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/291955 , uj:31718
- Description: Abstract: Study purpose and context: Auditor independence is a critical component of audit quality, which in turn is necessary for the proper functioning of capital markets, public protection and economic decision-making. Mandatory audit firm rotation (MAFR) has received a great deal of attention internationally in recent years, as concerns mount regarding the quality of external audits performed and the independence of auditors. These concerns have been exacerbated by corporate financial collapses that result from unchecked management misconduct and fraud. In these circumstances, the auditors are accused of failing to prevent and detect the financial misconduct, or to act as whistle-blowers. Many have claimed that problem goes beyond negligence and that the familiarity and relationships developed between client and auditor over many years of the audit firm appointment has impaired independence and professional scepticism. In 2017 the South African audit regulator, the Independent Regulatory Board for Auditors (IRBA), issued a ruling to implement MAFR on a ten-year rotation basis, effective April 2023. This ruling follows similar regulation enacted in the European Union (EU) in 2014. The debate concerning MAFR has shown divergent views among key audit-industry participants. These views include debate surrounding the additional intentions of the IRBA to use MAFR to stimulate socio-economic transformation in the audit profession by building the capacity of black-owned audit firms and facilitating opportunities for small- and medium-tier audit firms to compete for the audits of large and exchange-listed companies. There is disagreement concerning whether audit quality and auditor independence is impaired in South Africa, as well as whether the existing safeguards are appropriate. The study aims to investigate the perceptions and arguments of key stakeholders in the South African MAFR debate, with specific consideration of audit quality, socioeconomic transformation and market concentration factors, in order to understand and explore possible unintended consequences of MAFR, as well as provide recommendations to audit industry stakeholders and regulators... , Ph.D. (Auditing)
- Full Text:
- Authors: Harber, Michael
- Date: 2018
- Subjects: Auditing - South Africa , Corporations - Auditing , Financial statements , Audit committees , Corporate governance - Moral and ethical aspects
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/291955 , uj:31718
- Description: Abstract: Study purpose and context: Auditor independence is a critical component of audit quality, which in turn is necessary for the proper functioning of capital markets, public protection and economic decision-making. Mandatory audit firm rotation (MAFR) has received a great deal of attention internationally in recent years, as concerns mount regarding the quality of external audits performed and the independence of auditors. These concerns have been exacerbated by corporate financial collapses that result from unchecked management misconduct and fraud. In these circumstances, the auditors are accused of failing to prevent and detect the financial misconduct, or to act as whistle-blowers. Many have claimed that problem goes beyond negligence and that the familiarity and relationships developed between client and auditor over many years of the audit firm appointment has impaired independence and professional scepticism. In 2017 the South African audit regulator, the Independent Regulatory Board for Auditors (IRBA), issued a ruling to implement MAFR on a ten-year rotation basis, effective April 2023. This ruling follows similar regulation enacted in the European Union (EU) in 2014. The debate concerning MAFR has shown divergent views among key audit-industry participants. These views include debate surrounding the additional intentions of the IRBA to use MAFR to stimulate socio-economic transformation in the audit profession by building the capacity of black-owned audit firms and facilitating opportunities for small- and medium-tier audit firms to compete for the audits of large and exchange-listed companies. There is disagreement concerning whether audit quality and auditor independence is impaired in South Africa, as well as whether the existing safeguards are appropriate. The study aims to investigate the perceptions and arguments of key stakeholders in the South African MAFR debate, with specific consideration of audit quality, socioeconomic transformation and market concentration factors, in order to understand and explore possible unintended consequences of MAFR, as well as provide recommendations to audit industry stakeholders and regulators... , Ph.D. (Auditing)
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Integrated reporting practices of state-owned entitites
- Authors: Morake, Kabelo Modise
- Date: 2017
- Subjects: Financial statements , Corporate governance , Corporation reports
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/245905 , uj:25479
- Description: M.Com. , Abstract: The publication of the King III report on Corporate Governance for South Africa (King III) in March 2010 and the release of the Integrated Reporting Framework (IR Framework ) in 2013, played a very important role and exerted a significant influence in sanctioning for South African entities to incorporate and champion the idea of integrated reporting (IR) whereby they must report on the strategies, corporate governance, risk management functions, financial sustainability and performance as well as the ability of the entity to create value and sustain it over time. Many significant decisions are made by the stakeholders or users of the current annual reports insofar as they help them to understand an entity’s potential to create value and operate sustainably in the foreseeable future. As a result, the information that is published in these reports is important in enabling users to make informed decisions. However, the same stakeholders also question the relevance and reliability of such reports in imparting adequate information to make sound investment decisions. These corporate reporting challenges, amongst many others, have highlighted the need for a significantly more comprehensive and more integrated corporate reporting model which would merge both financial and non-financial information in a meaningful manner. With the advent of democracy in South Africa in 1994, regulatory reforms such as the Public Finance Management Act (PFMA, 1999), the new Companies Act No 71 of 2008 and King III were instituted in order to improve decision-making processes and corporate governance requirements for all entities, including state-owned entities (SOEs). SOEs primarily assist the state to fulfil the mandate of growing the economy by providing efficient, reliable and affordable services in critical sectors, such as electricity supply, water, health services, transport infrastructure and school facilities. They also make infrastructure improvements that are economically and socially critical to the welfare of the nation. Against this background, and considering the impact that SOEs have on the South African economy, there is a strategic need for an integrated way of reporting the performance and results of SOEs to meet the information requirements of all stakeholders in order to make them understand what drives...
- Full Text:
- Authors: Morake, Kabelo Modise
- Date: 2017
- Subjects: Financial statements , Corporate governance , Corporation reports
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/245905 , uj:25479
- Description: M.Com. , Abstract: The publication of the King III report on Corporate Governance for South Africa (King III) in March 2010 and the release of the Integrated Reporting Framework (IR Framework ) in 2013, played a very important role and exerted a significant influence in sanctioning for South African entities to incorporate and champion the idea of integrated reporting (IR) whereby they must report on the strategies, corporate governance, risk management functions, financial sustainability and performance as well as the ability of the entity to create value and sustain it over time. Many significant decisions are made by the stakeholders or users of the current annual reports insofar as they help them to understand an entity’s potential to create value and operate sustainably in the foreseeable future. As a result, the information that is published in these reports is important in enabling users to make informed decisions. However, the same stakeholders also question the relevance and reliability of such reports in imparting adequate information to make sound investment decisions. These corporate reporting challenges, amongst many others, have highlighted the need for a significantly more comprehensive and more integrated corporate reporting model which would merge both financial and non-financial information in a meaningful manner. With the advent of democracy in South Africa in 1994, regulatory reforms such as the Public Finance Management Act (PFMA, 1999), the new Companies Act No 71 of 2008 and King III were instituted in order to improve decision-making processes and corporate governance requirements for all entities, including state-owned entities (SOEs). SOEs primarily assist the state to fulfil the mandate of growing the economy by providing efficient, reliable and affordable services in critical sectors, such as electricity supply, water, health services, transport infrastructure and school facilities. They also make infrastructure improvements that are economically and socially critical to the welfare of the nation. Against this background, and considering the impact that SOEs have on the South African economy, there is a strategic need for an integrated way of reporting the performance and results of SOEs to meet the information requirements of all stakeholders in order to make them understand what drives...
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The accounting treatment of mega infrastructure development project costs in South Africa
- Authors: Gwala, Thabane Alex
- Date: 2017
- Subjects: Financial statements , Accounting firms , Infrastructure (Economics)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272696 , uj:29040
- Description: M.Com. (International Accounting) , Abstract: Various organisations continue to undertake mega infrastructure development projects to address the infrastructure development challenges of South Africa. The cost components of these projects are complex and often result in reporting entities having to make significant management judgements on the financial reporting thereof. The study represents a technical report assessing the accounting treatment of key costing areas within these projects with a view of identifying areas of consistency and divergence in practice. The study follows a doctrinal research approach of comprehensively reviewing the available literature supplemented by interviews with senior personnel of the "big four" accounting firms. The study reveals that whilst there are consistent views among the four respondents from the "big four" accounting firms on the accounting treatment on development costs and corporate social investment costs, divergent views exist pertaining to compensation events costs, suspension of capitalisation as well as the impact of a project contracting strategy on overall accounting treatment. It is, therefore, recommended that the IASB provide further guidance on these diverged issues to ensure consistency in practice.
- Full Text:
- Authors: Gwala, Thabane Alex
- Date: 2017
- Subjects: Financial statements , Accounting firms , Infrastructure (Economics)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272696 , uj:29040
- Description: M.Com. (International Accounting) , Abstract: Various organisations continue to undertake mega infrastructure development projects to address the infrastructure development challenges of South Africa. The cost components of these projects are complex and often result in reporting entities having to make significant management judgements on the financial reporting thereof. The study represents a technical report assessing the accounting treatment of key costing areas within these projects with a view of identifying areas of consistency and divergence in practice. The study follows a doctrinal research approach of comprehensively reviewing the available literature supplemented by interviews with senior personnel of the "big four" accounting firms. The study reveals that whilst there are consistent views among the four respondents from the "big four" accounting firms on the accounting treatment on development costs and corporate social investment costs, divergent views exist pertaining to compensation events costs, suspension of capitalisation as well as the impact of a project contracting strategy on overall accounting treatment. It is, therefore, recommended that the IASB provide further guidance on these diverged issues to ensure consistency in practice.
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A comparative study of integrated reporting capitals and related financial reporting information
- Authors: Makgae, Jeridah
- Date: 2016
- Subjects: International financial reporting standards , International Accounting Standards Board , Financial statements , Human capital , Intellectual capital , Infrastructure (Economics)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237184 , uj:24298
- Description:
M.Com. (International Accounting)
, Abstract: The International Integrated Reporting Framework (
Framework) was issued in December 2013 by the International Integrated Reporting Council (IIRC). The Framework lists six capitals that entities use. Entities often include those capitals that are more important or are used more frequently than others. Although the Framework was recently issued, the concept of integrated reporting is not a new concept in South Africa. The King Code of Governance (King III) was issued in 2009 and it has a requirement for entities to publish integrated reports. The purpose of this study is do a comparison between the information provided on the six capitals of integrated reporting and the related financial reporting information. A full list of International Financial Reporting Standards (IFRSs) that were used in this comparative study is listed under heading 4.2.3. The International Accounting Standard Board’s (IASB) IFRSs do not address all the capitals in detail. The accounting treatment of each capital is prescribed in relevant IFRS standards. A content analysis has been performed by comparing the information on the six capitals of integrated reporting and the relevant IFRSs identified. The results of the study indicate that the information that is presented and disclosed in the annual financial statements does not always give a true reflection of the results of the entity. This is mainly because of certain expenditures that do not meet the definition of an asset or liability, or that the recognition and measurement criteria of IFRSs will not lead to presentation on the statement of financial position. The study indicates additional information that should be disclosed in the notes to the financial statement or in the integrated report for each capital. - Full Text:
- Authors: Makgae, Jeridah
- Date: 2016
- Subjects: International financial reporting standards , International Accounting Standards Board , Financial statements , Human capital , Intellectual capital , Infrastructure (Economics)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237184 , uj:24298
- Description:
M.Com. (International Accounting)
, Abstract: The International Integrated Reporting Framework (
Framework) was issued in December 2013 by the International Integrated Reporting Council (IIRC). The Framework lists six capitals that entities use. Entities often include those capitals that are more important or are used more frequently than others. Although the Framework was recently issued, the concept of integrated reporting is not a new concept in South Africa. The King Code of Governance (King III) was issued in 2009 and it has a requirement for entities to publish integrated reports. The purpose of this study is do a comparison between the information provided on the six capitals of integrated reporting and the related financial reporting information. A full list of International Financial Reporting Standards (IFRSs) that were used in this comparative study is listed under heading 4.2.3. The International Accounting Standard Board’s (IASB) IFRSs do not address all the capitals in detail. The accounting treatment of each capital is prescribed in relevant IFRS standards. A content analysis has been performed by comparing the information on the six capitals of integrated reporting and the relevant IFRSs identified. The results of the study indicate that the information that is presented and disclosed in the annual financial statements does not always give a true reflection of the results of the entity. This is mainly because of certain expenditures that do not meet the definition of an asset or liability, or that the recognition and measurement criteria of IFRSs will not lead to presentation on the statement of financial position. The study indicates additional information that should be disclosed in the notes to the financial statement or in the integrated report for each capital. - Full Text:
An analysis of credit risk disclosure practices on loans by South African banks
- Mantloana, Tebogo Nkwakwa Elliot
- Authors: Mantloana, Tebogo Nkwakwa Elliot
- Date: 2016
- Subjects: Banks and banking - Risk management , Credit - Risk assessment , Global Financial Crises, 2008-2009 , Financial statements , International financial reporting standards
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/225541 , uj:22785
- Description: Abstract: Banks today are some of the largest financial institutions worldwide. With branches and subsidiaries on the doorsteps of most, they are virtually part of the communities within which they operate. However, as part of their day-to-day operations, commercial banks constantly face a number of risks. Being cognisant of the fact that credit granting is one of the main sources of bank income, credit risk is therefore seen as one of their most significant risks, as it has the propensity to affect the decisions that users of financial statements can make about the entity. The main purpose of this research is to conduct a content analysis of the disclosed credit risk information by South Africa’s four major banks in relation to their offered loans and advances, so as to establish the extent of their compliance to the International Financial Reporting Framework (IFRS) 7 disclosure requirements. The aim is to assess the significance of the disclosed credit risk information by establishing the extent to which the four banks have adequately, sufficiently and appropriately disclosed the nature and extent of their exposure to credit risk. This assessment is primarily based on the changes to their credit risk profiles that arise from these loans and advances. This will enable the ability of users of these banks’ financial statements to evaluate the nature and extent of credit risk exposure arising from these loans and advances. As well as the resulting impact on these credit risk profiles that stems from the unprecedented growth in the same loans and advances. To achieve the above aims, a content analysis study was conducted from two alternative perspectives: one from a quantitative perspective (to test the existence of the specified credit risk disclosures), and the other from a qualitative perspective (to test the quality of the disclosed credit risk information). The content analysis performed revealed that the four major banks in South Africa are fully compliant with the IFRS 7 credit risk disclosure requirements, and that the quality thereof is generally of a “basic” level. , M.com. (International Accounting )
- Full Text:
- Authors: Mantloana, Tebogo Nkwakwa Elliot
- Date: 2016
- Subjects: Banks and banking - Risk management , Credit - Risk assessment , Global Financial Crises, 2008-2009 , Financial statements , International financial reporting standards
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/225541 , uj:22785
- Description: Abstract: Banks today are some of the largest financial institutions worldwide. With branches and subsidiaries on the doorsteps of most, they are virtually part of the communities within which they operate. However, as part of their day-to-day operations, commercial banks constantly face a number of risks. Being cognisant of the fact that credit granting is one of the main sources of bank income, credit risk is therefore seen as one of their most significant risks, as it has the propensity to affect the decisions that users of financial statements can make about the entity. The main purpose of this research is to conduct a content analysis of the disclosed credit risk information by South Africa’s four major banks in relation to their offered loans and advances, so as to establish the extent of their compliance to the International Financial Reporting Framework (IFRS) 7 disclosure requirements. The aim is to assess the significance of the disclosed credit risk information by establishing the extent to which the four banks have adequately, sufficiently and appropriately disclosed the nature and extent of their exposure to credit risk. This assessment is primarily based on the changes to their credit risk profiles that arise from these loans and advances. This will enable the ability of users of these banks’ financial statements to evaluate the nature and extent of credit risk exposure arising from these loans and advances. As well as the resulting impact on these credit risk profiles that stems from the unprecedented growth in the same loans and advances. To achieve the above aims, a content analysis study was conducted from two alternative perspectives: one from a quantitative perspective (to test the existence of the specified credit risk disclosures), and the other from a qualitative perspective (to test the quality of the disclosed credit risk information). The content analysis performed revealed that the four major banks in South Africa are fully compliant with the IFRS 7 credit risk disclosure requirements, and that the quality thereof is generally of a “basic” level. , M.com. (International Accounting )
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The impact of integrated reporting on business practices
- Authors: Semenya, Derrick Phuti
- Date: 2016
- Subjects: Financial statements , Corporation reports
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/124259 , uj:20896
- Description: Abstract: The IIRC states as its long term vision a world in which integrated thinking is embedded within mainstream business practice and therefore sees integrated thinking as key in fostering integrated reporting. This study seeks to establish how embedded integrated thinking is in the integrated reporting processes of a sample of JSE Listed entities as they produce integrated reports. The objective of this research is therefore to assess whether integrated reporting is achieving integrated thinking and to what extent business processes has been impacted by producing integrated reports by these entities. Assessing the nature of integrated thinking was based on a qualitative interpretative methodology using the research instrument of semi-structured interviews. Twelve nonexecutive, executive and senior management were interviewed and the interviews were analysed using a thematic approach. The research found that there were different levels of maturity in the adoption of integrated reporting and integrated thinking. The focus was generally more on producing the integrated report than developing integrated thinking. Overall, the research found that integrated reporting has not achieved the level of integrated thinking that would result in changing or significant influence in the way in which business is conducted. The research findings mean that further development needs to be done to ensure that integrated thinking is fully embedded in business practices. As the interviewees came from a spectrum of JSE Listed entities and from various levels of senior and non-executive management, the results provide an indication of the level of embeddedness of integrated thinking in the entities and how integrated reporting has impacted business practices. , M.Com. (International Accounting)
- Full Text:
- Authors: Semenya, Derrick Phuti
- Date: 2016
- Subjects: Financial statements , Corporation reports
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/124259 , uj:20896
- Description: Abstract: The IIRC states as its long term vision a world in which integrated thinking is embedded within mainstream business practice and therefore sees integrated thinking as key in fostering integrated reporting. This study seeks to establish how embedded integrated thinking is in the integrated reporting processes of a sample of JSE Listed entities as they produce integrated reports. The objective of this research is therefore to assess whether integrated reporting is achieving integrated thinking and to what extent business processes has been impacted by producing integrated reports by these entities. Assessing the nature of integrated thinking was based on a qualitative interpretative methodology using the research instrument of semi-structured interviews. Twelve nonexecutive, executive and senior management were interviewed and the interviews were analysed using a thematic approach. The research found that there were different levels of maturity in the adoption of integrated reporting and integrated thinking. The focus was generally more on producing the integrated report than developing integrated thinking. Overall, the research found that integrated reporting has not achieved the level of integrated thinking that would result in changing or significant influence in the way in which business is conducted. The research findings mean that further development needs to be done to ensure that integrated thinking is fully embedded in business practices. As the interviewees came from a spectrum of JSE Listed entities and from various levels of senior and non-executive management, the results provide an indication of the level of embeddedness of integrated thinking in the entities and how integrated reporting has impacted business practices. , M.Com. (International Accounting)
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The disclosure of productivity information in the annual financial report
- Authors: Foyster, Johanna Wilhelmina
- Date: 2015-09-08
- Subjects: Disclosure in accounting , Disclosure of information , Financial statements , Performance standards , Industrial efficiency
- Type: Thesis
- Identifier: uj:14073 , http://hdl.handle.net/10210/14489
- Description: M.Com. , Please refer to full text to view abstract
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- Authors: Foyster, Johanna Wilhelmina
- Date: 2015-09-08
- Subjects: Disclosure in accounting , Disclosure of information , Financial statements , Performance standards , Industrial efficiency
- Type: Thesis
- Identifier: uj:14073 , http://hdl.handle.net/10210/14489
- Description: M.Com. , Please refer to full text to view abstract
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The effect of enterprise resource planning systems on the financial statement audit of a higher education institution
- Authors: Nzama, Lethiwe Lourine
- Date: 2015-07-14
- Subjects: Enterprise resource planning , Oracle (Computer file) , Financial statements , Universities and colleges - Finance - Data processing , Universities and colleges - Auditing
- Type: Thesis
- Identifier: uj:13705 , http://hdl.handle.net/10210/13970
- Description: M.Com. (Computer Auditing) , This study investigates the effects of the implementation and upgrade of financial Enterprise Resource Planning (hereafter ERP) systems, particularly the Oracle system, on financial reporting and audit. It also determines whether the independent external auditors play a vital role in the process of implementing internal controls in the implementation and upgrade of the Oracle system at a higher education institution (hereafter HEI). With the ever-evolving information technology, it is of utmost importance that the necessary controls be implemented. A sample of 18 Oracle system users from the HEI finance expenditure department and HEI independent external auditors is surveyed and the results of the survey are used to provide advice to organisational management on measures that should be implemented to ensure smooth systems implementation and post-implementation results. The empirical study indicates that the HEI had adequate measures and controls in place to ensure that the ERP implementation runs smoothly and threats are avoided, resulting in a successful implementation for competitive advantage in HEI.
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- Authors: Nzama, Lethiwe Lourine
- Date: 2015-07-14
- Subjects: Enterprise resource planning , Oracle (Computer file) , Financial statements , Universities and colleges - Finance - Data processing , Universities and colleges - Auditing
- Type: Thesis
- Identifier: uj:13705 , http://hdl.handle.net/10210/13970
- Description: M.Com. (Computer Auditing) , This study investigates the effects of the implementation and upgrade of financial Enterprise Resource Planning (hereafter ERP) systems, particularly the Oracle system, on financial reporting and audit. It also determines whether the independent external auditors play a vital role in the process of implementing internal controls in the implementation and upgrade of the Oracle system at a higher education institution (hereafter HEI). With the ever-evolving information technology, it is of utmost importance that the necessary controls be implemented. A sample of 18 Oracle system users from the HEI finance expenditure department and HEI independent external auditors is surveyed and the results of the survey are used to provide advice to organisational management on measures that should be implemented to ensure smooth systems implementation and post-implementation results. The empirical study indicates that the HEI had adequate measures and controls in place to ensure that the ERP implementation runs smoothly and threats are avoided, resulting in a successful implementation for competitive advantage in HEI.
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The decision-usefulness of insurance accounting information
- Authors: De Wet, Yolindi
- Date: 2015
- Subjects: Insurance - Accounting , Disclosure in accounting , Exposure drafts , Financial statements , Accounting - Standards
- Language: English
- Type: Masters Thesis
- Identifier: http://hdl.handle.net/10210/54547 , uj:16237
- Description: Abstract: The International Accounting Standards Board is presently working on Phase II of the Insurance Contract project. The objective of this project is to compile a standard, based on principles, which will address accounting for various insurance contracts issued by companies and improve financial reporting comparability between companies. This research study critically evaluates whether decision-useful information will be provided by South Africa’s large, listed long-term insurers through the use of the IASB’s building block approach proposed in Phase II, the Exposure Draft on Insurance Contracts issued in 2013. A questionnaire developed for this study was used in a comparative analysis of current financial reporting and proposed financial reporting by long-term insurers. The findings of this research study indicate that IFRS 4 Phase II will result in the provision of decision-useful insurance accounting information. A long-term insurer’s financial reporting will be more consistent and comparable, which is aligned with the basic requirements of financial reporting. IFRS 4 Phase II will enhance comparability between various long-term insurers in South Africa. These findings support the conclusion that a move to IFRS 4 Phase II for long-term insurer financial reporting in South Africa will be beneficial to users of financial statements in making economic decisions. , M.Com. (Accounting)
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- Authors: De Wet, Yolindi
- Date: 2015
- Subjects: Insurance - Accounting , Disclosure in accounting , Exposure drafts , Financial statements , Accounting - Standards
- Language: English
- Type: Masters Thesis
- Identifier: http://hdl.handle.net/10210/54547 , uj:16237
- Description: Abstract: The International Accounting Standards Board is presently working on Phase II of the Insurance Contract project. The objective of this project is to compile a standard, based on principles, which will address accounting for various insurance contracts issued by companies and improve financial reporting comparability between companies. This research study critically evaluates whether decision-useful information will be provided by South Africa’s large, listed long-term insurers through the use of the IASB’s building block approach proposed in Phase II, the Exposure Draft on Insurance Contracts issued in 2013. A questionnaire developed for this study was used in a comparative analysis of current financial reporting and proposed financial reporting by long-term insurers. The findings of this research study indicate that IFRS 4 Phase II will result in the provision of decision-useful insurance accounting information. A long-term insurer’s financial reporting will be more consistent and comparable, which is aligned with the basic requirements of financial reporting. IFRS 4 Phase II will enhance comparability between various long-term insurers in South Africa. These findings support the conclusion that a move to IFRS 4 Phase II for long-term insurer financial reporting in South Africa will be beneficial to users of financial statements in making economic decisions. , M.Com. (Accounting)
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The archaic concepts of agency theory : a South African accounting practice perspective
- Olivey, Margaretha Magdalena
- Authors: Olivey, Margaretha Magdalena
- Date: 2014-10-07
- Subjects: Accounting - South Africa , Financial statements , Agency theory
- Type: Thesis
- Identifier: uj:12495 , http://hdl.handle.net/10210/12290
- Description: M.Com. (International Accounting) , Without me trying to rewrite history or steal the thunder from many historians, it was William Pollard who said: “without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable” (Brainyquote, 2014). In the words of the famous George Bernard Shaw, “progress is impossible without change, and those who cannot change their minds cannot change anything” (Brainyquote, 2014). These truths equally apply to accounting practice. Over the past few years, many factors have contributed to changes in accounting practice.
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- Authors: Olivey, Margaretha Magdalena
- Date: 2014-10-07
- Subjects: Accounting - South Africa , Financial statements , Agency theory
- Type: Thesis
- Identifier: uj:12495 , http://hdl.handle.net/10210/12290
- Description: M.Com. (International Accounting) , Without me trying to rewrite history or steal the thunder from many historians, it was William Pollard who said: “without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable” (Brainyquote, 2014). In the words of the famous George Bernard Shaw, “progress is impossible without change, and those who cannot change their minds cannot change anything” (Brainyquote, 2014). These truths equally apply to accounting practice. Over the past few years, many factors have contributed to changes in accounting practice.
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The usefulness of IFRS financial statements of the valuation of private equity investments
- Authors: Van Reenen, Andrea Frances
- Date: 2014-07-23
- Subjects: International financial reporting standards , Financial statements , Private equity
- Type: Thesis
- Identifier: uj:11782 , http://hdl.handle.net/10210/11506
- Description: M.Com. (Accounting) , Please refer to full text to view abstract
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- Authors: Van Reenen, Andrea Frances
- Date: 2014-07-23
- Subjects: International financial reporting standards , Financial statements , Private equity
- Type: Thesis
- Identifier: uj:11782 , http://hdl.handle.net/10210/11506
- Description: M.Com. (Accounting) , Please refer to full text to view abstract
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Verantwoording vir waardevermindering in die finansiële state van maatskappye
- Authors: Dempsey, Amanda
- Date: 2014-06-04
- Subjects: Financial statements , Depreciation
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/373589 , uj:11357 , http://hdl.handle.net/10210/10995
- Description: M.Com. , This study examines the disclosure of depreciation in company financial statements. The following aspects were discussed: a) The nature of depreciation. Concepts for the measurement of depreciation can be 'classified under the following: depreciation as a process of cost allocation depreciation as a process of valuation depreciation as a reservation of funds for the replacement of assets. b) The measurement of depreciation. Both the depreciable amount ang the useful life of fixed assets are factors taken into consideration in the measurement of depreciation. The method applied in the measurement as well as the problems related to estimation are discussed. c) The revaluation of fixed assets. Maintenance of capital as the purpose of revaluation, the determination of such value and sUbsequent entry thereof into the financial records are contemplated. d) The disclosure fixed assets of depreciation and revaluation of in the financial statements of companies. The prerequisites according to generally accepted accounting practice are quoted and the application in practice of same subsequently viewed. The discussion clearly signifies that the relevant documents issued by the SA Institute of Chartered Accountants are clear and unambiguous. Yet, the requirements of disclosure contained in these documents are not adhered to in practice.
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- Authors: Dempsey, Amanda
- Date: 2014-06-04
- Subjects: Financial statements , Depreciation
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/373589 , uj:11357 , http://hdl.handle.net/10210/10995
- Description: M.Com. , This study examines the disclosure of depreciation in company financial statements. The following aspects were discussed: a) The nature of depreciation. Concepts for the measurement of depreciation can be 'classified under the following: depreciation as a process of cost allocation depreciation as a process of valuation depreciation as a reservation of funds for the replacement of assets. b) The measurement of depreciation. Both the depreciable amount ang the useful life of fixed assets are factors taken into consideration in the measurement of depreciation. The method applied in the measurement as well as the problems related to estimation are discussed. c) The revaluation of fixed assets. Maintenance of capital as the purpose of revaluation, the determination of such value and sUbsequent entry thereof into the financial records are contemplated. d) The disclosure fixed assets of depreciation and revaluation of in the financial statements of companies. The prerequisites according to generally accepted accounting practice are quoted and the application in practice of same subsequently viewed. The discussion clearly signifies that the relevant documents issued by the SA Institute of Chartered Accountants are clear and unambiguous. Yet, the requirements of disclosure contained in these documents are not adhered to in practice.
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Die direkteursverslag as meganisme om bruikbaarheid van finansiële inligting te verhoog
- Authors: Coetser, Helgard Petrus
- Date: 2014-04-01
- Subjects: Financial statements , Financial statements - South Africa
- Type: Thesis
- Identifier: uj:4578 , http://hdl.handle.net/10210/9925
- Description: M.Com. (Financial Management) , Please refer to full text to view abstract
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- Authors: Coetser, Helgard Petrus
- Date: 2014-04-01
- Subjects: Financial statements , Financial statements - South Africa
- Type: Thesis
- Identifier: uj:4578 , http://hdl.handle.net/10210/9925
- Description: M.Com. (Financial Management) , Please refer to full text to view abstract
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Assessing the impact of operating lease capitalization on the financial statements of listed companies
- Opperman, Cornelius Petrus Jacobus
- Authors: Opperman, Cornelius Petrus Jacobus
- Date: 2014-03-03
- Subjects: Leases - Accounting , Financial statements , Accounting - Standards
- Type: Thesis
- Identifier: uj:4215 , http://hdl.handle.net/10210/9573
- Description: M.Com. (International Accounting) , Leases have been used as an alternative means of financing for many years and they form part of the business models of entities in various industries. Many large JSE listed companies in different industries also use leases extensively. Although lease accounting requirements under IFRS have been in place for a number of years, some of the fundamental principles underlying the current lease accounting models have been the subject of much debate by standard setters and practitioners. In particular, the conceptual soundness of lessees not capitalising operating lease commitments has been a key area of consideration. In response to the conceptual debates, the IASB published an exposure draft titled ED/2010/9 Leases (hereafter ED), which will ultimately replace the current lease standard IAS 17. The ED establishes a new “right-of-use model”, which requires lessees to capitalize all leases on their balance sheets. The purpose of the minor dissertation was to determine the impact that the capitalisation of operating lease commitments under the requirements of the ED will have on the financial statements of JSE listed companies. In support of the research problem, the methodology applied in the minor dissertation was a quantitative content analysis, which was designed to obtain ex ante evidence on the potential future impact of the implementation of the ED. In order to assess the impact, the minor dissertation analysed the impact on total liabilities and total assets due to operating lease capitalisation, as well as the impact on certain key financial indicators and ratios. The initial sample was the top 50 companies in terms of market capitalisation that were listed on the JSE at 31 December 2011. After excluding companies with no or immaterial operating lease commitments, the final sample size was 44. The literature review showed that the impact of operating lease capitalisation has been researched in various countries, such as Canada, Germany, New Zealand, the UK and the US. During the completion of the minor dissertation it was found that a South African study was recently published on the impact of operating lease capitalisation on JSE listed companies. The study applied one of the methods identified in the literature for deriving information required to perform the operating lease capitalisation calculation and also assumed a uniform discount rate. The minor dissertation was based on an alternative method of deriving the required information and applied company-specific discount rates. The results of the research showed an increase in total liabilities and total assets due to operating lease capitalization. The impact on the key financial indicators and ratios varied, with some ratios impacted positively and others negatively. The impact was also found to be generally lower than international trends and differed from a similar study performed in South Africa.
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- Authors: Opperman, Cornelius Petrus Jacobus
- Date: 2014-03-03
- Subjects: Leases - Accounting , Financial statements , Accounting - Standards
- Type: Thesis
- Identifier: uj:4215 , http://hdl.handle.net/10210/9573
- Description: M.Com. (International Accounting) , Leases have been used as an alternative means of financing for many years and they form part of the business models of entities in various industries. Many large JSE listed companies in different industries also use leases extensively. Although lease accounting requirements under IFRS have been in place for a number of years, some of the fundamental principles underlying the current lease accounting models have been the subject of much debate by standard setters and practitioners. In particular, the conceptual soundness of lessees not capitalising operating lease commitments has been a key area of consideration. In response to the conceptual debates, the IASB published an exposure draft titled ED/2010/9 Leases (hereafter ED), which will ultimately replace the current lease standard IAS 17. The ED establishes a new “right-of-use model”, which requires lessees to capitalize all leases on their balance sheets. The purpose of the minor dissertation was to determine the impact that the capitalisation of operating lease commitments under the requirements of the ED will have on the financial statements of JSE listed companies. In support of the research problem, the methodology applied in the minor dissertation was a quantitative content analysis, which was designed to obtain ex ante evidence on the potential future impact of the implementation of the ED. In order to assess the impact, the minor dissertation analysed the impact on total liabilities and total assets due to operating lease capitalisation, as well as the impact on certain key financial indicators and ratios. The initial sample was the top 50 companies in terms of market capitalisation that were listed on the JSE at 31 December 2011. After excluding companies with no or immaterial operating lease commitments, the final sample size was 44. The literature review showed that the impact of operating lease capitalisation has been researched in various countries, such as Canada, Germany, New Zealand, the UK and the US. During the completion of the minor dissertation it was found that a South African study was recently published on the impact of operating lease capitalisation on JSE listed companies. The study applied one of the methods identified in the literature for deriving information required to perform the operating lease capitalisation calculation and also assumed a uniform discount rate. The minor dissertation was based on an alternative method of deriving the required information and applied company-specific discount rates. The results of the research showed an increase in total liabilities and total assets due to operating lease capitalization. The impact on the key financial indicators and ratios varied, with some ratios impacted positively and others negatively. The impact was also found to be generally lower than international trends and differed from a similar study performed in South Africa.
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Huidigewaarde-finansiële inligting : 'n gebruikersbenadering
- Authors: Liebenberg, Johann
- Date: 2014-02-11
- Subjects: Financial statements
- Type: Thesis
- Identifier: uj:3772 , http://hdl.handle.net/10210/9148
- Description: M.Com. (Accounting) , Please refer to full text to view abstract
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- Authors: Liebenberg, Johann
- Date: 2014-02-11
- Subjects: Financial statements
- Type: Thesis
- Identifier: uj:3772 , http://hdl.handle.net/10210/9148
- Description: M.Com. (Accounting) , Please refer to full text to view abstract
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Relative importance of company financial statements in investment analysis
- Authors: Bruinette, Albert J.M.
- Date: 2014-02-10
- Subjects: Business enterprises - Valuation , Financial statements , Corporations - Finance
- Type: Thesis
- Identifier: uj:3725 , http://hdl.handle.net/10210/9105
- Description: M.Comm. , Please refer to full text to view abstract
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- Authors: Bruinette, Albert J.M.
- Date: 2014-02-10
- Subjects: Business enterprises - Valuation , Financial statements , Corporations - Finance
- Type: Thesis
- Identifier: uj:3725 , http://hdl.handle.net/10210/9105
- Description: M.Comm. , Please refer to full text to view abstract
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