Showing papers in "Australian Accounting Review in 2005"
TL;DR: In this paper, the authors examined the nature and extent of sustainability reporting practices in various reporting media used by companies listed on the ASX (annual reports, discrete reports and websites).
Abstract: This study examines the nature and extent of sustainability reporting practices in the various reporting media used by companies listed on the ASX (annual reports, discrete reports and websites). The sustainability reporting practices of the sample are compared with key indicators outlined in the GRI framework. The annual report is found to be the least valuable source of information on corporate sustainability in terms of the number of indicators observed and the diversity of the information provided. The discrete reports and websites provide greater levels of information on sustainability; however the overall levels of disclosure are generally low.
233 citations
TL;DR: In this article, the authors investigated voluntary intellectual capital disclosure (ICD) by listed Hong Kong companies using data taken from the years 1992, 1998 and 2002 to give a longitudinal account of voluntary ICD company size and industry effects on the voluntary disclosure, as well as the effects of time and level of disclosure on the financial success of a company.
Abstract: This paper investigates voluntary intellectual capital disclosure (ICD) by listed Hong Kong companies It uses data taken from the years 1992, 1998 and 2002 to give a longitudinal account of voluntary ICD Company size and industry effects on voluntary ICD are tested, as are the effects of time and level of disclosure on the financial success of a company We find that levels of voluntary ICD are low but increase over time Size and industry effects are found, while company financial success is positively correlated with the voluntary disclosure These findings have implications for policy formulation and practice in relation to the reporting of intellectual capital
118 citations
TL;DR: In this article, the authors examine international practices that measure firm-level investments into intangible capital and propose that the way to a standardised, more comparable approach to measuring intangible capital is to employ a back-to-basics "costs" approach which classifies investments in intangible capital as assets based on management intent at the time.
Abstract: This paper examines international practices that measure firm-level investments into intangible capital. The issues motivating the paper are the need for a standardised framework for measuring intangible capital and the possibility for standardised applications of these measures into the future. The paper analyses the differences and problems associated with the properties of the “official” (accounting) and “non-official” measurement approaches. We propose that the way to a standardised, more comparable approach to measuring intangible capital is to employ a back-to-basics “costs” approach which classifies investments in intangible capital as assets based on management intent at the time.
97 citations
TL;DR: In this article, the authors reviewed developments in research into public-sector performance management over the past 20 years and paid particular attention to four increasingly influential research approaches in this area: multidimensional stakeholder approaches, balanced scorecard approach, institutional approaches and the radical learning approach.
Abstract: This paper reviews developments in research into public-sector performance management over the past 20 years. Particular attention is paid to four increasingly influential research approaches in this area: multidimensional stakeholder approaches, the balanced scorecard approach, institutional approaches and the radical learning approach. Opportunities for applying these approaches in further research are also outlined. These opportunities are discussed in light of changing reform agendas centred on growing concerns with managing outcomes and relative performance evaluation as means of fostering an enhanced citizen or beneficiary orientation, inter-organisational collaboration and learning in the public sector.
55 citations
TL;DR: Otley et al. as mentioned in this paper argued that the localisation and implemen-tation of the BSC can be a difficult process and that it is not as easy as it seems.
Abstract: 2003, p. 146).As the quotation indicates, this manager was morethan a keenly motivated change agent. He demon-strated a degree of insightfulness, mobilising theapparent seductiveness of the BSC and its constitutiveconcepts in the course of his change program (seeKaplan and Norton 1996). Nonetheless, thisAustralian manager, like many others around theglobe, discovered that the localisation and implemen-tation of the BSC can be pr oblematic. Making the BSCwork is not as easy as it seems.For about a decade, practising managers have con-fronted the reality of the BSC — considered one of themajor innovations in performance measurement inrecent times (Ittner and Larcker 1998, Otley 1999,2003).
48 citations
TL;DR: The findings suggest that the NZ hospitals BSC has some way to go in moving from its current status as a mandated reporting requirement to become an effective mechanism for supporting health sector accountability and management.
Abstract: Many countries are turning to the balanced scorecard to measure and manage performance in the public health sector. Questions remain, however, about the usefulness of this tool for promoting accountability and strategic management in this domain. This paper draws on diffusion of innovations theory and international comparisons to explore the effectiveness of a BSC in New Zealand hospitals. The findings suggest that the NZ hospitals BSC has some way to go in moving from its current status as a mandated reporting requirement to become an effective mechanism for supporting health sector accountability and management.
46 citations
TL;DR: It is hypothesized that when the environment is highly uncertain, learning effects from rolling forecasting result in superior performance in high uncertainty conditions, and in the same environment, traditional budgeting results in poorer performance because there is no systematic method for exploring and understanding environmental uncertainty.
Abstract: Calls for improvements to traditional yearly corporate budgeting practices have a common thread, the failure of these practices to provide adequate plans in uncertain environments. Rolling budgets that require continuously updated forecasts have been suggested as a means to improve the traditional budget process. We hypothesise that when the environment is highly uncertain, learning effects from rolling forecasting result in superior performance. In the same environment, traditional budgeting results in poorer performance because there is no systematic method for exploring and understanding environmental uncertainty. Alternatively, rolling forecasting causes inferior performance in low uncertainty conditions because commitment to the budget goal is more important than the benefits of learning from forecasting.
45 citations
TL;DR: In this paper, the authors offer insights into developments in the practice of performance measurement and management through examination of three case studies, and suggest the usefulness of implementing broad-based performance measurement frameworks, and the criticality of organizational culture to effective performance management.
Abstract: This paper offers insights into developments in the practice of performance measurement and management through examination of three case studies. Analysis of the cases suggests a clear distinction between performance measurement and management. It clarifies the usefulness of implementing broad-based performance measurement frameworks, and the criticality of organisational culture to effective performance management.
31 citations
TL;DR: In this paper, the authors discuss frameworks for the development of supply chain performance measures, and presents case studies of performance measurement in Australian supply chains, and discuss the difficulties in their design and implementation.
Abstract: Interest in supply chain management (SCM) has increased as organisations seek opportunities to improve performance. Monitoring plays a key role in enhancing supply-chain performance by highlighting opportunities for improvements. However, evidence on the use of performance measures in SCM is scant. This paper explains the role of performance measures in SCM, and the difficulties in their design and implementation. The paper discusses frameworks for the development of supply chain performance measures, and presents case studies of performance measurement in Australian supply chains.
30 citations
TL;DR: In this paper, the authors present a case study of a medium-sized Danish firm which accounts for the relationship between knowledge and innovation by using a network of a knowledge narrative, management challenges, efforts and numbers.
Abstract: In many firms and in many industrialised countries, innovation is regarded as fundamental to growth and wealth creation. However, it is not easy to define a measure of innovation that is a leading indicator for value creation. This would imply a linear model of knowledge as a simple input to value-creating processes. Instead, intellectual capital is suggested as an alternative, employing a (non-linear) narrative of how knowledge works. This is illustrated by the case of a medium-sized Danish firm which accounts for the relationship between knowledge and innovation by using a network of a knowledge narrative, management challenges, efforts and numbers.
24 citations
TL;DR: In this paper, the authors identify the types of ethical issues encountered by accountants, the influence of such experience on accountants' ethical perceptions and the effect of situational factors, the field of employment and the accountant's position in the organisation on accountant's perceptions of ethics.
Abstract: This paper aims to identify the types of ethical issues encountered by accountants, the influence of such experience on accountants' ethical perceptions and the effect of situational factors, the field of employment and the accountant's position in the organisation on accountants' perceptions of ethics. Differences were found in perceptions about ethical issues among accountants in different fields of employment. The study also confirms the inverse relationship between hierarchical position and ethical perception among top, middle and junior staff, with higher-ranked accountants perceiving most ethical issues as less important than their subordinates.
TL;DR: The authors reviewed the current financial reporting framework in Australia by considering three groups that are involved in the production of companies' financial reports: rule-makers, financial report preparers and rule enforcers.
Abstract: This article reviews the current financial reporting framework in Australia by considering three groups that are involved in the production of companies' financial reports: rule-makers, financial report preparers and rule-enforcers. We outline dramatic changes to the financial reporting framework in the period 2002-04 (primarily from CLERP 9) and explore the effect on the roles and activities of various groups of the adoption of international accounting standards in Australia.
TL;DR: In this article, the authors address the question of the reporting entity in a harmonised GAAP-GFS framework and discuss whether the GFS General Government Sector meets the criteria for the general-purpose reporting entity.
Abstract: Harmonisation between Generally Accepted Accounting Principles and Government Finance Statistics is the highest priority for Australian public-sector reporting. This paper addresses the question of the reporting entity in a harmonised GAAP-GFS framework and discusses whether the GFS General Government Sector meets the criteria for the general-purpose reporting entity. The objective of harmonisation is to achieve an Australian accounting standard for a single set of government reports which are auditable and comparable between jurisdictions, and in which the outcome statements are directly comparable with the relevant budget statements. Since there is widespread interest in General Government Sector information by users, the sector is the obvious candidate for the government general-purpose reporting entity.
Journal Article•
TL;DR: The Australian accounting profession must maintain high-quality auditing and corporate financial reporting or risk greater regulatory intrusions and additional threats to its relatively high levels of autonomy, the authors warn.
Abstract: This paper warns the Australian accounting profession about the threat of fallout similar to that experienced in the US following major accounting scandals. This US fallout has included a significant loss of public faith in the accounting profession, reduced autonomy for auditors with the formation of the Public Companies Accounting Oversight Board, and the stringent Sarbanes-Oxley Act. The Australian accounting profession must maintain high-quality auditing and corporate financial reporting or risk greater regulatory intrusions and additional threats to its relatively high levels of autonomy.
TL;DR: In this article, the authors show how the introduction of enterprise management systems creates a new set of audit and control problems for such environments, including a lack of backup in terms of critical human resources; change controls are often nonexistent; possible malfunction of scripts causing various impacts including loss of data integrity; and, pre-emption of the execution of critical production systems crippling the entire production environment.
Abstract: Today, organisations may have production applications running on multiple servers, spread geographically throughout the organization. In such circumstances, organisations will look to software assistance through packages collectively known as Enterprise Management Systems (EMS). This paper shows how the introduction of such software creates a new set of IS audit and control problems for such environments. Five sites were interviewed and case studied. While many audit issues were identified, the following problems were clearly highlighted in the cases: a lack of backup in terms of critical human resources; change controls are often nonexistent; possible malfunction of scripts causing various impacts including loss of data integrity; and, pre-emption of the execution of critical production systems crippling the entire production environment. Moreover, while the academic and practice literatures were found to be comprehensive regarding the audit and control issues peculiar to the EMS environment, the study identified issues that are not covered in the literature.
TL;DR: In this paper, the application of balanced scorecard as a performance measurement tool to convert intangible assets into tangible outcomes is examined using a case study of a Sino-US joint venture.
Abstract: The application of the balanced scorecard as a performance measurement tool to convert intangible assets into tangible outcomes is examined using a case study of a Sino-US joint venture — Xinan JV. The balanced scorecard is described in terms of the specific measures that were used to manage various innovation and human resource development processes and initiatives to help the company respond to its strategic challenges. We present some impressions of the managers of the company on how the balanced scorecard facilitated the management of intangibles in the joint venture.
TL;DR: In this article, a case study of the utilisation and users of cost information in a state-owned teaching and research hospital in Australia is presented. And the authors identify various productive and unproductive ways that cost information is used, and impediments to the use of costing information in the hospital setting.
Abstract: This paper reports on a case study of the utilisation and users of cost information in a state-owned teaching and research hospital in Australia. The findings indicate that the current utilisation of the cost information resides primarily at higher executive and managerial levels of the organisation. Organisational change, particularly pressure for improved productivity and competitiveness driven by public-sector reforms in Australia, is significantly filtering down throughout the subject hospital. Various productive and unproductive ways that cost information is used, and impediments to the use of costing information in the hospital setting, are identified.
Journal Article•
TL;DR: In this paper, a fiscal strategy for Australia is proposed, as a way of rebuilding the nation's diminished physical, knowledge and social capital in a framework consistent with the most rigorous demands of financial management.
Abstract: More considered answers are needed in Australia to key questions about accounting for and managing the role of government. The need for such answers is highlighted by the move to negative net debt and by the underlying fragility of the economy, as well as by the financial cost of election commitments. After a discussion of relevant theoretical and empirical issues, a fiscal strategy for Australia is proposed, as a way of rebuilding the nation's diminished physical, knowledge and social capital in a framework consistent with the most rigorous demands of financial management.
TL;DR: In this article, the implications of enterprise resource planning systems for organizations in general and for managers and professionals in particular are analyzed, including the roles of functional and professional groups such as engineers, accountants, production and warehousing personnel and managers.
Abstract: Enterprise resource planning systems have been adopted by many businesses, large and small, to take advantage of their typical features: information integration, business process perspective, transaction processing efficiency and instantaneous availability of information for decision support. The systems are expected to affect almost every aspect of business including structures, procedures, supervision, decision-making, performance and workloads, and the roles of functional and professional groups such as engineers, accountants, production and warehousing personnel and managers. This paper analyses the implications of enterprise resource planning systems for organisations in general and for managers and professionals in particular.
TL;DR: This paper suggests an analogous disorder caused by accounting interventions, similar to that of the New Zealand public health system, which is illustrated in this paper.
Abstract: An iatrogenic disorder is the name given to a disease or illness that is actually created by medical interventions. This paper suggests an analogous disorder caused by accounting interventions. Attempts to introduce greater accountability and associated accounting technology can lead to disorder, the treatment for which is often prescribed as more of what caused the problem. The example illustrated in this paper is that of the New Zealand public health system. Policies introduced by well-meaning politicians and bureaucrats have created the opposite condition to that desired. Until an iatrogenic disorder is recognised, it is hard to see an appropriate solution.
TL;DR: In this article, the authors examined the role of performance management and control system choices made by two hospital networks in the achievement of intended amalgamation objectives and concluded that the evaluation of amalgamation and other public policy initiatives at a sector level cannot be made independently of the discretion left to management regarding means of implementing these initiatives.
Abstract: This paper examines the way organisational responses to public-sector reform initiatives shape the nature and extent of achievable outcomes. The mandated creation of multi-hospital networks in Victoria is used as a representative example of amalgamation initiatives observed in both the private and public sectors. This study explores the extent to which performance management and control system choices made by two hospital networks enhance or stymie the achievement of intended amalgamation objectives. The study indicates that the evaluation of amalgamation and other public policy initiatives at a sector level cannot be made independently of the discretion left to management regarding means of implementing these initiatives.
TL;DR: This paper elaborates on inter-country differences and proposes how the approaches in England and Scotland may affect productivity and innovation in health care delivery, by exploring research into the behaviour of the most powerful of health care providers, the senior clinicians in hospitals.
Abstract: The political reforms of the public sector, termed “new public management” (NPM), now have a 20-year history. This paper looks at local differences between England and Scotland over a particular dimension of NPM — performance management in health care. In the context of the dynamic reform agenda in the UK, it is expected that these “local” lessons will have some global relevance. This paper elaborates on these inter-country differences and proposes how the approaches in England and Scotland may affect productivity and innovation in health care delivery. It does this by exploring research into the behaviour of the most powerful of health care providers, the senior clinicians in hospitals.
TL;DR: In this paper, the authors investigated the introduction of customer-focused performance measures in a wholesale financial services company pursuing customer intimacy, examining the potential trade-offs in the design of customer focused performance measurement systems and identifying social and technical factors that shaped the fate of the new performance measurement system studied.
Abstract: Organisations have been urged to embrace “customer intimacy” in order to become market leaders. However, the complexities of developing and implementing performance measures for customer intimacy are yet to be investigated. This study investigates the introduction of customer-focused performance measures in a wholesale financial services company pursuing customer intimacy. The study demonstrates the multi-dimensional nature of customer intimacy, examines the potential trade-offs in the design of customer-focused performance measurement systems and identifies social and technical factors that shaped the fate of the new performance measurement system studied.
Journal Article•
TL;DR: The Joint Working Group (JWG) proposal for the measurement of all financial instruments at fair value and the recognition of changes in fair value in the income statement met with criticism from the Joint working Group of Banking Associations QWGBA as discussed by the authors.
Abstract: The Joint Working Group (JWG) proposal for the measurement of all financial instruments at fair value and the recognition of changes in fair value in the income statement met with criticism from the Joint Working Group of Banking Associations QWGBA). This research study investigates the extent to which chief financial officers in Australian financial institutions agree with the JWGBA. Findings indicated respondents tended to agree, albeit to a lesser extent, with the JWGBA. Conversely, they also agree with the JWG, as they believe fair-value information is not commercially sensitive and could be reliably determined.
Journal Article•
TL;DR: In this article, the contract method of accounting for a forward exchange contract under IAS 39 is presented, which differs from the method demonstrated in most current textbooks, which is based on gross accounting for the underlying rights and obligations of the forward exchange.
Abstract: This paper illustrates the contract method of accounting for a forward exchange contract under IAS 39. This differs from the method demonstrated in most current textbooks, which is based on gross accounting for the underlying rights and obligations of the forward exchange. The gross approach had been argued from the conceptual framework (eg, SAC 4) whereas IAS 39 requires the contract (net) approach. IAS 39 requires the existence of a contract for a financial instrument to be recognised and then requires accounting for that contract as a separate asset or liability from the underlying executory asset or obligations.
TL;DR: In this article, the authors argue that the land compensation problem might be imputed to inadequate communication between landowners and mining companies, and suggest that accounting, as the main source of business information, should develop a communication process for the benefit of landowners as residual stakeholders.
Abstract: Papua New Guinea, richly endowed with natural resources, has a unique land tenure system which imposes on mining companies the threat of land compensation payments. A celebrated example of the consequence of the demand for land compensation is the closure of the Panguna copper mine operated by Bougainville Copper Ltd. This paper argues that the land compensation problem might be imputed to inadequate communication between landowners and mining companies. It suggests that accounting, as the main source of business information, should develop a communication process for the benefit of landowners as residual stakeholders. Landowner reporting, an extension of the financial reporting regime in PNG, is envisaged as a special-purpose financial report addressed to landowners and highlighting their interests as residual stakeholders.