A content analysis of defined benefit plans in the financial statements of South African listed companies
- Authors: Padayachee, Visvanathan
- Date: 2014-06-10
- Subjects: Defined benefit pension plans - South Africa , Financial statements - South Africa , International Accounting Standards Board , Actuarial assumptions , Actuarial gains and losses
- Type: Thesis
- Identifier: uj:11432 , http://hdl.handle.net/10210/11128
- Description: M.Com. (International Accounting) , Post-employment benefits under IAS 19 include defined benefit plans (DBP’s) and defined contribution plans. The accounting for defined contribution plans is fairly straightforward, since accrual accounting is applied and the employer entity’s legal or constructive obligation is limited to the amount the employer entity agrees to contribute to the defined contribution plan. In contrast, the accounting for DBP’s is complicated and provides a promise/guarantee of future benefits and the investment and actuarial risk of the plan lies with the employer entity. The literature review indicated that accounting and presentation of DBP’s is complicated because of the long-term nature of the liability/asset that is raised for the plan. There are many uncertainties involved in estimating the liability as this involves looking into the future and making estimates and assumptions about the future. The literature also indicated factors such as the market performance of assets, and inaccurate or unrealistic assumptions and decisions that delay making payments to DBP’s affects the funding status. Actuaries and accountants differ somewhat in the roles they play in determining the amount for DBP’s, with accountants choosing the accrued benefit method. The problem with DBP’s is that they are of a long-term nature and require estimates and assumptions to be made in calculating the DBP liability/asset. The long-term nature affects the adequacy of the liability/asset recognised for DBP’s and the related disclosure in the financial statements of large listed companies. The objective of the minor dissertation is to perform a content analysis on the presentation and disclosure of DBPs in the financial statements of a sample of Johannesburg Stock Exchange listed companies in South Africa. The research approach applied includes a broad assessment of the current status of DBP’s and defined contribution plans operated by the top 40 Johannesburg Stock Exchange (JSE) listed companies, followed by a quantitative and qualitative assessment on the disclosures provided by these companies’ financial statements.
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- Authors: Padayachee, Visvanathan
- Date: 2014-06-10
- Subjects: Defined benefit pension plans - South Africa , Financial statements - South Africa , International Accounting Standards Board , Actuarial assumptions , Actuarial gains and losses
- Type: Thesis
- Identifier: uj:11432 , http://hdl.handle.net/10210/11128
- Description: M.Com. (International Accounting) , Post-employment benefits under IAS 19 include defined benefit plans (DBP’s) and defined contribution plans. The accounting for defined contribution plans is fairly straightforward, since accrual accounting is applied and the employer entity’s legal or constructive obligation is limited to the amount the employer entity agrees to contribute to the defined contribution plan. In contrast, the accounting for DBP’s is complicated and provides a promise/guarantee of future benefits and the investment and actuarial risk of the plan lies with the employer entity. The literature review indicated that accounting and presentation of DBP’s is complicated because of the long-term nature of the liability/asset that is raised for the plan. There are many uncertainties involved in estimating the liability as this involves looking into the future and making estimates and assumptions about the future. The literature also indicated factors such as the market performance of assets, and inaccurate or unrealistic assumptions and decisions that delay making payments to DBP’s affects the funding status. Actuaries and accountants differ somewhat in the roles they play in determining the amount for DBP’s, with accountants choosing the accrued benefit method. The problem with DBP’s is that they are of a long-term nature and require estimates and assumptions to be made in calculating the DBP liability/asset. The long-term nature affects the adequacy of the liability/asset recognised for DBP’s and the related disclosure in the financial statements of large listed companies. The objective of the minor dissertation is to perform a content analysis on the presentation and disclosure of DBPs in the financial statements of a sample of Johannesburg Stock Exchange listed companies in South Africa. The research approach applied includes a broad assessment of the current status of DBP’s and defined contribution plans operated by the top 40 Johannesburg Stock Exchange (JSE) listed companies, followed by a quantitative and qualitative assessment on the disclosures provided by these companies’ financial statements.
- Full Text:
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:
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