Browsing by Author "Botica Redmayne N"
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- ItemAre financial reports useful? The views of New Zealand public versus private users(John Wiley and Sons, Inc on behalf of CPA Australia, 2020-03-13) Ehalaiye D; Laswad F; Botica Redmayne N; Stent W; Cai LThis study reports on surveys conducted with users of financial reports in New Zealand. We compare findings for users of reports of two types of for-profit entities, namely those with public accountability (public entities) and those with no public accountability (private entities). The findings indicate that both types of users have similar perceptions regarding the usefulness of financial statements, with the income statement and balance sheet rated as the most useful components. Furthermore, both types of users, especially private users, perceive financial statements as the most important information source for decision making. Public users have a greater interest in supplementary information than private users. The findings of this study contribute to the debate around differential reporting for private companies and have policy implications with regard to the user-needs approach to accounting standard setting.
- ItemEvidence on the costs of changes in financial reporting frameworks in the public sector(Taylor and Francis Group, 2019-09-01) Botica Redmayne N; Laswad F; Ehalaiye DThis paper examines the impact of changes in reporting frameworks on New Zealand public sector audit costs in terms of both audit fees and effort. Audit costs increased with the adoption of both International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS) reporting frameworks. The costs of auditing across various financial reporting frameworks in the public sector is shown to be significantly influenced by auditors’ specialization.
- ItemInsights on Management Commentary in financial reports: The views of users, preparers and auditors(Emerald, 2022-01-31) Botica Redmayne N; Laswad F; Ehalaiye D; Stent WPurpose: New Zealand (NZ) has no reporting standard or guidance for management commentary (MC) that accompanies financial reports. This is unusual, considering MC is provided by many entities and valued by users. Further, the guidance on MC provided by the International Accounting Standards Board (IASB) in their Management Commentary Practice Statement 1 (MCPS1), which was issued in 2010, is currently under review. Thus, the purpose of this paper is to examine the views of NZ’s financial reporting stakeholders, particularly users, preparers and auditors of financial reports for insights regarding the usefulness of MC. Design/methodology/approach: To gain insights into the views of NZ’s financial reporting stakeholders on MC, this paper surveyed users, preparers and auditors of financial statements. This paper includes an analysis of their views on the objectives, content and principles that should underlie MC in financial reporting, based on the IASB’s MCPS1 with consideration of recent work by the IASB on the revision of MCPS1. In addition, the analysis provides insights as to whether the reporting of MC should be made mandatory, and whether assuring MC would increase its usefulness. Findings: This study found that auditors generally view MC as less useful and more in need of assurance than do preparers and users. Respondents’ ratings indicate that the most important objective for MC is “to enable the assessment of the quality of management’s stewardship”. “Assessing the entity’s future prospects”, and “assessing future cash flows” are also highly rated objectives. The most important principle in preparing MC is identified as “focus on the most important and relevant information”, while the most important content element identified is “the entity's financial performance and position, and cash flows”. Originality/value: This paper highlights the views of various stakeholders regarding MC reporting, particularly preparers and auditors whose views have not been noted previously in the literature. Also, this study should be of interest to both international and national financial reporting standard setters and regulators. It is particularly timely in view of the current IASB work towards revision and updating of MCPS1, as it provides current insights into what users, preparers and auditors perceive as the most important considerations for MC. This study also has implications for the XRB in NZ, where there is no prior research on stakeholders’ views on MC.
- ItemMeasurement and reporting of heritage assets - Insights from practice in New Zealand(Emerald Publishing, 2022-06-22) Botica Redmayne N; Laswad F; Ehalaiye D; Caruana, J; Bisogno, M; Sicilia, MAccounting for heritage assets has evolved, but continuing diversity in reporting practices remains problematic. Traditional cash-based budgets, which are still common in governmental accounting in some countries, ignore heritage assets as they are non-realisable and often do not generate revenue, yet they incur cash outflows to preserve them. The adoption of accrual accounting for recording heritage assets raises technical issues of recognition and measurement of such assets, both in the balance sheet and in income statements. This chapter examines the financial reporting environment for heritage assets in New Zealand. The chapter provides evidence on the reporting practices of heritage assets by five of New Zealand’s significant museums during the period 2011 to 2020, under IAS 16 and IPSAS 17 requirements. We analyse disclosures on heritage assets in the financial reports of these museums, including accounting policies, valuation and measurement, income statement impact, and related notes. The findings suggest that, despite the existence of the IFRS (IAS 16) and IPSAS (IPSAS 17) reporting standards during this period, a variety of reporting practices exist among New Zealand museums, as heritage assets are recognised either at fair value or historical cost on the balance sheet or not recognised in the financial statements at all. These findings suggest substantial non-uniformity in the actual measurement and reporting of heritage assets and are of interest to policy makers and regulators, particularly in countries that are currently considering adoption of IPSAS.