Jill Hooks

The information gap in annual reports

Following radical restructuring of the electricity industry in New Zealand since 1987, the government adopted a “light‐handed” regulatory regime that used market‐based methods involving competition and transparent accountability. This accountability is in part discharged through the provision of information in the corporate annual report. To assess the quality of that communication, a disclosure index was developed and applied to the annual reports of the 33 electricity retail and distribution companies which comprise the entire industry in New Zealand. The index was developed using the ideas and opinions of 15 experts representing broad stakeholder groups. This paper compares the resulting scores for the extent and quality of each index item with the level of importance of those items as stated by the panel. Many items are not adequately disclosed, resulting in an information gap between stakeholders’ expectations and the disclosures provided by the electricity companies. This paper identifies the items and the detail about them needed to close that gap.

Born at the wrong time? An oral history of women professional accountants in New Zealand

Although New Zealand was the first country within the Commonwealth to allow women to enter the profession of accountancy on a continuous basis, this did not result in a large number of women becoming professional accountants until the 1990s. This paper focuses on the development of the status of women within the accounting profession in New Zealand. Documents from the early and middle part of this century provide evidence that the accounting profession was almost entirely male in these years. A number of women who joined the New Zealand Society of Accountants in the 1940s and 1950s were interviewed and their testimonies were interpreted using insights gained from the extant literature on gender and the professionalisation of accounting. It was found that, while there were no formal barriers to entry, the obstacles to progression, identified in the literature on other countries, existed within the New Zealand context.

IFRS in New Zealand: effects on financial statements and ratios

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 ...

PERFORMANCE REPORTING BY MALAYSIAN LOCAL AUTHORITIES: IDENTIFYING STAKEHOLDER NEEDS

The concept of public accountability promotes the need for a comprehensive set of performance-related information to satisfy the information needs of a diverse stakeholder interest group. However, literature concerned with the scope of information to be disclosed, and in particular within the context of a developing country, is limited. This paper identifies the information set which stakeholders of Malaysian local authorities consider relevant in the monitoring and assessment of local authority performance. Stakeholders indicated strong interest in performance information that is not traditionally disclosed in the financial statements: non-financial information particularly performance measurement of outputs, outcomes, efficiency and effectiveness. Disclosures in the Statement of Revenue and Expenditure and forward-looking information are generally regarded as the most important disclosures. The results of the study also indicate differences amongst stakeholders as to the level of importance that they place on certain items especially items related to internal policies and governance and financial position of the local authorities. The findings will be of significance to policy makers interested in improving the performance reporting of Malaysian public sector entities, particularly local authorities.

Performance Reporting by Malaysian Local Authorities: Identifying Stakeholder Needs

The concept of public accountability promotes the need for a comprehensive set of performance-related information to satisfy the information needs of a diverse stakeholder interest group. However, literature concerned with the scope of information to be disclosed, and in particular within the context of a developing country, is limited. This paper identifies the information set which stakeholders of Malaysian local authorities consider relevant in the monitoring and assessment of local authority performance. Stakeholders indicated strong interest in performance information that is not traditionally disclosed in the financial statements: non-financial information particularly performance measurement of outputs, outcomes, efficiency and effectiveness. Disclosures in the Statement of Revenue and Expenditure and forward-looking information are generally regarded as the most important disclosures. The results of the study also indicate differences amongst stakeholders as to the level of importance that they place on certain items especially items related to internal policies and governance and financial position of the local authorities. The findings will be of significance to policy makers interested in improving the performance reporting of Malaysian public sector entities, particularly local authorities.

Does including pictorial disclosure of intellectual capital resources make a difference

Purpose – This paper seeks to examine the extent to which pictures are used to communicate intellectual capital (IC) information and the changes in volume of IC disclosure when pictures are included.Design/methodology/approach – A content analysis was conducted to determine the impact that pictures have on IC reporting (ICR) results. In determining the extent to which pictures are used in corporate annual reports the paper compares frequencies of IC reported in pictures as proportions of: total IC reported, total pictures and total pages. A key assumption underlying content analysis is that the volume of disclosure signifies the importance of the item(s) being disclosed. The paper compares the volume of IC items disclosed with and without pictures to determine which items firms signal as being most important. Using these volumes the paper determines which of the sampled firms use pictures as a popular reporting mechanism to disclose their IC resources.Findings – A significant portion (42 per cent) of ICR ...

Interpreting pictorial messages of intellectual capital in company media

Purpose - Companies use figures within the annual report to send messages. The purpose of this paper is to explore the opinions and understandings of annual report preparers who produce the figures and users who interpret them. The focus is on figures that the authors consider convey messages about the companys intellectual capital (IC). Design/methodology/approach - The paper used a questionnaire to obtain the opinions of “informed investors” and conducted interviews with the preparers of the annual reports. It compared the opinions of the two respondent groups. Findings - Preparers and users bring multiple meanings to the figures. Users overlooked some messages which were complex and symbolic and also perceived more messages than intended by the preparers. The two respondent groups generally perceived brands, corporate image building and aspects related to employees as the IC items best portrayed in the selected figures. Most users and some preparers perceived the main reason for using figures was their strength as a marketing tool. Research limitations/implications - The paper is exploratory in nature and there is scope to extend the work to a greater number of annual reports and/or figures. The research is limited by the use of students as a proxy for users of annual reports. Practical implications - The findings may be helpful to annual report preparers in understanding the rhetorical impact of images. Such understanding will help them in choosing figures which are effective and persuasive when seeking user engagement. Originality/value - The authors are not aware of any prior research that examines the perceptions of preparers and users in respect of messages conveyed through figures, and, in particular, research that incorporates aspects of IC in corporate annual report figures. The paper, therefore, extends the empirical literature on IC.

Performance Reporting: Assessing the Annual Reports of Malaysian Local Authorities

There have been calls for Malaysian local authorities to be more transparent and accountable in the discharge of their functional responsibilities. This study empirically evaluates the extent and quality of current performance reporting by local authorities. The disclosure of relevant information for discharging accountability obligations, as defined by a broad range of stakeholders, falls short of best practice. Therefore, the performance of Malaysian local authorities lacks transparency. The findings could assist in the development of more comprehensive guidelines for local authority reporting and raise awareness of information stakeholders expect to be reported in the context of accountability.

Co‐operation and collaboration: the case of the de‐regulated New Zealand electricity industry

Purpose – The purpose of this paper is to use the New Zealand electricity industry as a case study to describe and understand the importance of collaborative relationships in coping with the changes faced by sectors of the industry over the last two decades.Design/methodology/approach – A multi‐method qualitative approach is used to investigate the nature of industry relationships. Data were collected through two‐phase in‐depth interviews with key electricity employees. Secondary documents and archival records were used to support participant contributions.Findings – The research finds that the majority of the collaborative relationships in the New Zealand electricity industry are “forced”. Nevertheless, and despite the preclusions of competition, relationships continue to support the strategic imperatives of firms and form an important component of firm‐level operation.Originality/value – The study provides an understanding of collaboration within a new contextual setting – the New Zealand electricity in...

THE GEOGRAPHY AND IDEOLOGY OF ACCOUNTING: A CASE STUDY OF DOMINATION AND ACCOUNTING IN A SUGAR REFINERY IN AUSTRALASIA, 1900–1920

This historical case study examines accounting in a sugar refinery from 1900 to 1920 in two arenas of operation. The geography of accounting enabled the workers at Chelsea to have their working experience sequestered by the company. Accounting routinized their work at the refinery, enabling their labor to become monitored, empty of meaning, and, at times, overwhelming. The ideology of accounting provided the company with an instrument of evasion to silence the voice of labor and an instrument of self-deception designed to justify and insulate the authoritarian hierarchy of the company and the power of its Australian general manager, Edward Knox. Accounting became an ideology that sought to legitimate the exploitation of the workforce and the generous return to shareholders.