Browsing by Author "Stent W"

Now showing 1 - 5 of 5
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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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    Charities’ new non-financial reporting requirements: preparers’ insights
    (Emerald Publishing Limited, 14/01/2020) Hooks J; Stent W
    Purpose – The purpose of this paper is to obtain insights from preparers on the new Performance Report requirements for New Zealand registered Tiers 3 and 4 charities, in particular the non-financial information included in the ‘Entity Information’ section and the ‘Statement of Service Performance’. Design/methodology/approach – Semi-structured interviews were conducted with 11 interviewees, each involved with governance and reporting of one or more Tiers 3- or 4-registered charities. These interviews were analysed in terms of accountability and legitimacy objectives, which motivated the regulators to introduce the new reporting regime. Findings – Key findings are summarised under three themes. Manageability relates to perceptions and suggestions regarding implementation of the new requirements. Scepticism concerns some doubts raised by interviewees regarding the motivations for performance reports and the extent to which they will be used. Effects include concerns about potentially losing good charities and volunteers because of new requirements making their work ‘too hard’, although an increased focus on outcomes creates the potential for continuous improvement. Research limitations/implications – The subjectivity that is inherent in thematic analysis is acknowledged and also that multiple themes may sometimes be present in the sentences and paragraphs analysed. The authors acknowledge too that early viewpoints may change over time. Practical implications – Themes identified may assist regulators, professional bodies and support groups to respond to the views of preparers. Findings will also be of interest to parties in other jurisdictions who are considering the implementation of similar initiatives. Originality/value – This paper provides early insights on new reporting requirements entailing significant changes for New Zealand registered charities for financial periods beginning on or after April 2015. The focus is on small registered charities (97 per cent of all New Zealand registered charities) and key aspects of the Performance Report: Entity Information and the Statement of Service Performance.
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    IFRS in New Zealand: Effects on financial statements and ratios
    (Emerald, 2010) Stent W; Bradbury M; Hooks J
    Purpose - The purpose of this paper is to examine the financial statement impacts of adopting NZ IFRS during 2005 through 2008. Design/methodology/approach - The effects of NZ IFRS on the financial statements and ratios of first-time adopters of NZ IFRS for a stratified random sample of 56 listed companies is analysed. In total, 16 of these were early adopters and 40 of which waited until adoption of NZ IFRS became mandatory. The analysis of the financial statement impact of NZ IFRS is conducted in the context of the accounting choice literature. Findings - The results show that 87 per cent of firms are affected by NZ IFRS. The median and inter-quartile ranges indicate that for most firms the impact of NZ IFRS is small. However, the maximum and minimum values indicate the impact can be large for some entities. The impact has considerable effects on common financial ratios. Research limitations/implications - The usual limitations applicable to small samples apply. Practical implications - The findings may be useful to regulators and policy makers reviewing financial reporting requirements. Originality/value - This study is the first to offer a comprehensive empirical analysis of the effect of adopting IFRS on financial statements in New Zealand, as well as on selected key ratios of interest to financial analysts. The data used are more recent than most IAS or IFRS studies around the world and are stratified to allow for comparison between voluntary/early adopters and mandatory/late adopters.
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    Insights into accounting choice from the adoption timing of International Financial Reporting Standards
    (Blackwell Publishing, 2015) Stent W; Bradbury ME; Hooks J
    This paper collects survey evidence on the costs and benefits of adopting International Financial Reporting Standards (IFRS). It also examines the motivations for the timing of IFRS adoption. Significant differences exist between early and late adopters for three of nine benefits and for one of six cost measures. No significant differences exist in terms of firm size or the impact of IFRS on contracts. Early adopters perceive themselves as market leaders. They are more certain about the manageability of implementing IFRS and are more specific with regard to the impact of IFRS adoption. Late adoption decisions are motivated by adverse consequences and uncertainty.
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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.