Juliana Ng

Mind Your Accruals: Perceived Usefulness of Financial Information in the Australian Public Sector Under Different Accounting Systems

This study examines the usefulness of three accounting systems (cash, Generally Accepted Accounting Principles (GAAP) accrual, and Government Finance Statistics (GFS) accrual) for public sector decision-making. From a survey of internal users, external users, and preparers in Australia, we find that GAAP accrual information is perceived to be relatively more useful and understandable than the other two systems for most decisions examined. The relatively higher ratings for GAAP accrual information differ from earlier studies and may reflect an experience or familiarity effect whereby perceptions of usefulness are enhanced because respondents have become more used to the system. This effect might also explain the lower ratings for GFS accrual.

CHANGE IN STRATEGY AND MCS: A MATCH OVER TIME?

Abstract This paper examines the relationship between strategy and MCS over time to study whether MCS changes when there is a change in strategic typology. This was achieved through the use of a questionnaire, supplemented with documentation review and interviews, in a public sector organization that had experienced a strategic change. The results showed that, as strategy changed, the MCS also changed. There was a significant increase in the use of both formal and informal control mechanisms over the period examined, which is consistent with Simons (1987) . Furthermore, the manner in which some controls were used became more interactive.

Analyst forecast revisions and asset allocation in Asia-Pacific markets

Abstract An indicator derived from analyst forecast revisions was used to investigate the relationship between revisions and subsequent stock returns in 15 Asia-Pacific markets. From an investment strategy based on forecast revisions, positive abnormal returns were earned in emerging markets, and negative abnormal returns in developed markets. This pattern was stronger in the 3-year period after July 1997 than in the prior 3 years. Significant market imperfections or irrational behaviour of market participants in emerging markets are possible reasons for the results. The difference in results between subperiods could also be due to an increased reliance on near-term earnings information in stock valuation after the burst of the Asian bubble economy.

The Descriptive Ability of Models of Audit Risk

Auditors are required to perform assessments of risk during the planning stages of an audit. Consequently, the efficiency and effectiveness of audits should be affected by risk assessments. Various models that could assist auditors in the risk assessment task have been discussed in the auditing literature.

Conceptual framework issues: perspectives of Australian public sector stakeholders

Recent international developments have refuelled the debate on public sector conceptual framework issues. Drawing on the Australian experience, this study surveys stakeholders of public sector financial reports to examine issues of concern in the development of concepts, definitions and principles pertinent to a public sector conceptual framework. The empirical evidence reveals varying degrees of consensus to questions relating to the objectives of financial reporting, the boundaries of financial reporting and financial statement elements. Respondents are generally not supportive of a single conceptual framework for both private and public sectors. The study also draws on the practices from other countries to provide a more insightful analysis. The study informs the progress of the development of a public sector conceptual framework by highlighting areas that need attention and identifying challenges that exist for standard setters in the further development of a conceptual framework that meets the needs of the public sector.