Browsing by Author "Botica Redmayne N"

Now showing 1 - 8 of 8
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    Applying Materiality Judgements
    (SSRN, 2023-11-10) Botica Redmayne N; Ehalaiye D; Ahmad F; Edeigba J; Laswad F
    This is a research report prepared for the New Zealand Accounting Standards Board (NZASB) of the External Reporting Board (XRB) on how the International Accounting Standards Board's (IASB's) requirements and guidance on materiality are applied to improve disclosures in general purpose financial statements.
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    Are financial reports useful? The views of New Zealand public versus private users
    (John Wiley and Sons, Inc on behalf of CPA Australia, 13/03/2020) Ehalaiye D; Laswad F; Botica Redmayne N; Stent W; Cai L
    This 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.
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    Evidence on the costs of changes in financial reporting frameworks in the public sector
    (Taylor and Francis Group, 1/09/2019) Botica Redmayne N; Laswad F; Ehalaiye D
    This 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.
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    Financial reporting transparency, citizens' understanding, and public participation: A survey experiment study
    (John Wiley and Sons Ltd, 2023-06-05) Langella C; Anessi-Pessina E; Botica Redmayne N; Sicilia M
    This study investigates the conditions under which transparency contributes to citizens' understanding of financial reporting and examines how this enhanced understanding is associated with public participation. To this end, a survey experiment was conducted in which two attributes of financial reporting transparency (i.e., content clarification and presentation format) were the manipulated variables, whereas citizens' understanding and public participation were the outcome variables. Results demonstrate that the provision of explanations to clarify obscure technical jargon does have a positive effect on citizens' understanding. A similar effect was found for the provision of graphical and visual representations. However, the study reveals that there is no additional benefit in simultaneously providing both explanations of technical jargon and visual aids. Furthermore, findings show that the levels of public participation are highest among the individuals who felt they understood the financial information the best, but yet possessed the lowest level of actual understanding.
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    Insights on Management Commentary in financial reports: The views of users, preparers and auditors
    (Emerald, 31/01/2022) Botica Redmayne N; Laswad F; Ehalaiye D; Stent W
    Purpose: 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.
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    Internal Audit in Microfinance Institutions-Evidence from Transitional and Developing Economies
    (John Wiley & Sons Ltd on behalf of European Bank for Reconstruction and Development., 2023-12-11) Omidiji A; Botica Redmayne N; Ehalaiye D; Gyapong E
    Microfinance institutions (MFIs) are hybrid organisations that strive to balance business and social goals. This paper examines the determinants of the internal audit (IA) function in MFIs, with particular emphasis on the business goals, specifically efficiency, productivity, regulation and the gross portfolio yield. We also investigate whether the establishment of an IA function is associated with MFI's focus on their social objectives relating to outreach, and women director appointments. Multivariate regression results from 1025 MFIs across 63 countries show that MFIs' focus on their social objectives is related to their propensity to establish an IA function. Thus, outreach and women director appointments are positively related to the establishment of an IA function. Similarly, in terms of the performance emphasis, the gross portfolio yield (inefficiency) increases (decreases) the likelihood of establishing an IA, but productivity and regulation have no effect. The findings suggest that MFIs' dual focus on social and business objectives impacts the establishment of internal audits. The results are robust to various measurements and estimations.
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    Measurement 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, M
    Accounting 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.
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    The use and perceived usefulness of public sector financial statements by politicians – evidence from Croatia
    (Emerald Publishing Limited, 2023-12-18) Pajković I; Botica Redmayne N; Vašiček V
    Purpose: This study analyses to what extent politicians use public sector entities' financial statements along with the politicians' perceptions of the usefulness of such statements in the politicians' decision-making. The authors analyze financial statements' use and usefulness when the statements are prepared on a modified accrual basis and in the setting where there is the intention of full accrual accounting adoption. In addition, this study provides information about the use of the individual components of financial statements and investigates the reasons why the statements may not be used. Design/methodology/approach: This study was conducted using a questionnaire. The authors surveyed politicians that are members of Croatian public sector bodies. To conduct this research, the politicians were contacted by telephone over the period from February to April 2022. Findings: The findings of this study are of potential interest to researchers, regulators and policy makers. The findings show that most politicians use financial statements, but the politicians' perception of the statements' usefulness when the statements are prepared on a modified accrual accounting basis is greater than the politicians' actual use of the statements. The findings also show that in the process of making decisions, politicians use the selected financial statements that contain information of interest to the politicians; that the politicians tend to gravitate to the use of reports on revenue, expenses, receipts and expenditure prepared on modified accrual bases which are closer to budgetary reporting; that the politicians use the information that supports the politicians' sphere of responsibility as enforced by legislation. Originality/value: This study provides insights into the use and usefulness of financial statements in public sector setting where modified accrual accounting is used to prepare the statements and reports. This study provides additional evidence on the significance of legal setting to the financial reporting in public sector.