South African Journal of Accounting Research最新文献

{"title":"Quantifying the sources of volatility in the IFRS 9 impairments","authors":"Y. Stander","doi":"10.1080/10291954.2021.1885242","DOIUrl":"https://doi.org/10.1080/10291954.2021.1885242","url":null,"abstract":"The International Financial Reporting Standards (IFRS) 9 accounting standard gives rise to impairments that are sensitive to the economic cycle. Rules around stage migration and the incorporation of forward-looking information lead to volatility in the impairments that is not always straightforward to explain. Impairment volatility and procyclicality are interlinked with the earnings quality of a bank. Research has shown that earnings volatility generally has a negative impact on firm value and share price and is considered a proxy for business risk. The impact of impairment volatility on earnings quality, together with the more detailed IFRS disclosure requirements, highlight the importance of banks being able to quantify, explain and manage the impairment volatility. This study explores the complex relationships between the different risk components that lead to impairment volatility. A Taylor series expansion is a useful tool to allocate changes in impairments to the different risk components. Finally, strategies to manage impairment volatility are explored.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"35 1","pages":"191 - 218"},"PeriodicalIF":1.1,"publicationDate":"2021-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2021.1885242","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44167915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A case study review and reasonability assessment of the foreign employment income tax exemption threshold in section 10(1)(o)(ii) of the Income Tax Act","authors":"Kgonthe Sebashe, Henriette Lynette Erasmus, M. Erasmus","doi":"10.1080/10291954.2020.1846860","DOIUrl":"https://doi.org/10.1080/10291954.2020.1846860","url":null,"abstract":"This research paper, by means of a case study, evaluated whether the foreign employment income tax exemption threshold in section 10(1)(o)(ii) of the Income Tax Act achieved its objectives: first, limiting the impact of the amendment to the exemption in respect of South African tax residents earning low or moderate levels of remuneration in either the United Arab Emirates (low-income tax rate jurisdiction) or the United Kingdom (high-income tax rate jurisdiction); and, second, spared tax residents earning remuneration in the United Kingdom of making additional ‘top-up’ tax payments to the South African Revenue Service. The case study assessed the tax position of a South African tax resident earning low, moderate or high levels of foreign remuneration in either the United Arab Emirates or United Kingdom, based on three mutually exclusive assumptions: first, had the full exemption continued to apply (as was effective on 29 February 2020); second, had the exemption threshold applied (effective from 1 March 2020, in terms of the 2020 Budget Review; not yet legislated at the time of writing the research paper); and, third, had the exemption, in full, been repealed (as proposed in terms of the Draft Taxation Laws Amendment Bill of 2017). The reasonability of the current threshold value was assessed by comparing it to the minimum threshold value required to achieve a break-even tax position in the Republic.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"36 1","pages":"250 - 271"},"PeriodicalIF":1.1,"publicationDate":"2021-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1846860","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46187473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Investigating the impact of country-by-country reporting on effective tax rates: Exploratory evidence from listed South African multinational groups","authors":"C. Thiart","doi":"10.1080/10291954.2020.1860483","DOIUrl":"https://doi.org/10.1080/10291954.2020.1860483","url":null,"abstract":"Background: Following the global initiative to curb base erosion and profit shifting, South Africa introduced Country-by-Country (CbC) reporting standards for South African multinational groups with an effective date of 1 January 2016. Aim: The study aims to develop and analyse indicators to investigate the impact of CbC reporting on the effective tax rate of South African multinational groups. Setting: The research focused on a selection of Johannesburg Stock Exchange (JSE)-listed companies, using financial data retrieved from the IRESS Expert database. Methods:Descriptive analyses were conducted on five developed measurable indicators. These indicators comprise the analysis of the average ETR of multinational groups through various approaches. Results: A comparison of the average consolidated effective tax rate (ETR) between multinational and non-multinational groups found a higher ETR for the multinational groups. The average consolidated ETR of multinational groups with a filing obligation was significantly higher than the average consolidated ETR of multinational groups without such an obligation. A comparison was conducted on the average consolidated ETR of multinational groups with a filing obligation between two stages, namely pre- and post-CbC reporting implementation. The results of this comparison revealed a highly significant increase in the average consolidated ETR of multinational groups post-CbC implementation as opposed to the ETR pre-implementation. No significant difference was found between the average consolidated ETR of multinational groups with at least one affiliate in a tax haven, as compared to those without. A comparison of the average foreign unconsolidated ETR found a significantly lower average foreign ETR for multinational groups than the consolidated overall ETR of multinational groups. In line with the study’s earlier result, namely a higher consolidated ETR for multinational groups with a filing obligation compared to their counterparts with no filing obligation, the foreign ETR of multinational groups with a CbC filing obligation was found to be significantly higher than the foreign ETR of those without a filing obligation. Similarly, the foreign ETR of multinational groups was significantly higher in the years post-CbC reporting implementation, as compared to the foreign ETR pre-implementation. Conclusion: Based on the study’s findings that reveal a general increase in the average consolidated ETR per specific indicators, a possible explanation for such findings may point to CbC reporting requirements.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"36 1","pages":"45 - 56"},"PeriodicalIF":1.1,"publicationDate":"2021-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1860483","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42695561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Revenue recognition practices in South Africa: An analysis of the decision usefulness of IFRS 15 disclosures","authors":"D. Coetsee, A. Mohammadali-Haji, M. V. Van Wyk","doi":"10.1080/10291954.2020.1855886","DOIUrl":"https://doi.org/10.1080/10291954.2020.1855886","url":null,"abstract":"The paper analyses the first-time adoption of IFRS 15 and reports on the appropriateness, rigour and decision usefulness of revenue disclosure practices in South Africa. The decision usefulness is assessed by reviewing the nature, amount, timing and uncertainty of revenue recognition information. A disclosure checklist was used for the content analysis and interpretation of a selection of South African listed companies. In most instances, revenue disclosures appeared to be orderly, concise, coherent and appropriately cross-referenced, indicating that generally companies were able to deal appropriately with entity-specific information regarding the nature, amount and timing of revenue recognition. Specifically, the disaggregation of revenue, the accounting policies and the transitional requirements were applied appropriately. However, two main concerns were identified, which compromise the decision usefulness of revenue recognition. Firstly, misalignment between the IFRS 15 information in the annual financial statements and the interim financial statements was identified in the first year of the application of IFRS 15. The finding indicates that some entities need to start their process of adopting a new financial reporting standard earlier. Secondly, specific assumptions and judgments regarding revenue recognition, determining the transaction price and measuring obligations for returns, refunds and other similar obligations were not always disclosed. Insufficient disclosure specifically regarding the uncertainty of revenue recognition could compromise the decision usefulness of revenue information. The findings of this paper contribute to the understanding of the first-time adoption implications of new accounting standards, such as IFRS 15.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"36 1","pages":"22 - 44"},"PeriodicalIF":1.1,"publicationDate":"2021-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1855886","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45644757","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An analysis of the extent and use of fair value by JSE Top 40 companies","authors":"W. van Zijl, Valencia Hewlett","doi":"10.1080/10291954.2020.1860484","DOIUrl":"https://doi.org/10.1080/10291954.2020.1860484","url":null,"abstract":"Fair value’s advantages, disadvantages and ideology have been debated thoroughly by academics and practitioners for decades. The few implementation papers which do exist are primarily concerned with developed economies. This gap is despite the prior literature acknowledging the likely difficulties of fair value use by less developed markets and economies. This paper contributes to addressing this gap by providing an analysis of the extent and use of fair value by Johannesburg Stock Exchange (JSE) Top 40 companies for the period 2013–2017. This paper finds limited use of fair value by JSE Top 40 companies. On average, only 184 assets and liabilities make use of fair value each year and this has not changed significantly over time. Most fair value use is by the financial services industry (41%) and for financial instruments (80%). Critically, only 28% of all financial elements made use of Level 1 inputs, and only 15% were classified overall as Level 1 inputs. The findings suggest Level 1 inputs are not widely available for financial elements and are rarely available for non-financial assets. When fair values are used for non-financial assets, this is mainly for investment property, commodity-inventories and impairment tests. Because of the reliance on Level 2 and 3 inputs, the results suggest fair value is a costly measurement basis to implement in South Africa and frequently requires management judgement. The consequence is that many fair values are susceptible to bias and manipulation.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"36 1","pages":"81 - 104"},"PeriodicalIF":1.1,"publicationDate":"2021-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1860484","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44656692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"National digital taxes – Lessons from Europe","authors":"S. Geringer","doi":"10.1080/10291954.2020.1727083","DOIUrl":"https://doi.org/10.1080/10291954.2020.1727083","url":null,"abstract":"Digitalisation has done more to shape the 21st century than virtually any other phenomenon. However, international tax law has seemingly failed to keep pace with rapid technological developments, which has likely led to inequalities between the tax burden of traditional and digital business models. Thus far, there has been no consensus regarding the issue of fair taxation of the digital economy at the international and EU level. As European policymakers have begun to experience noticeable amounts of pressure to act, several EU countries have pushed forward and introduced unilateral measures to ensure they receive a fair share of the tax revenues pie. However, it is unclear whether national digital taxes can overcome the tax challenges stemming from the increasing digitalisation of the economy. Thus, newly proposed and implemented national digital taxes in Europe are thoroughly elaborated in the context of their relationship with double tax treaty law, the perils of double/multiple taxation, their coherence with European law, their global and regional impact on competition and competitiveness, their contribution to tax revenues and the establishment of fair taxation conditions. The analysis concludes with a presentation of pertinent suggestions regarding national and supranational tax policy.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"35 1","pages":"1 - 19"},"PeriodicalIF":1.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1727083","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44755935","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The normal tax consequences of home swaps for residents owning property in the Republic of South Africa","authors":"M. Zietsman, A. Herron","doi":"10.1080/10291954.2020.1728036","DOIUrl":"https://doi.org/10.1080/10291954.2020.1728036","url":null,"abstract":"“Home swapping” has become more accessible due to a global phenomenon, known as the sharing economy. Technological advancement has removed the barriers to international trade and members of home swapping programmes exchange rights to provide each other with accommodation in their homes both nationally and internationally. These exchanges can be facilitated through the exchange of an incorporeal non-cash benefit, constituting either points or rights and can essentially be seen as a short-term rental agreement. Incorporeal non-cash benefits fall within the ambit of a barter transaction and consequently within the scope of gross income. The main objective of this article is to determine the normal tax implications of a South African resident who owns a property in South Africa, upon receipt or accrual of the benefit of a successful home swap transaction. In order to meet this objective, South African and international literature was analysed to determine the recommended normal tax treatment of these home swap transactions. Home swap benefits were found to constitute gross income in terms of the Income Tax Act No. 58 of 1962.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"35 1","pages":"69 - 86"},"PeriodicalIF":1.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1728036","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48086123","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Application of principles from the International < IR > Framework for including sustainability disclosures within South African integrated reports","authors":"Shelly Herbert, M. Graham","doi":"10.1080/10291954.2020.1778828","DOIUrl":"https://doi.org/10.1080/10291954.2020.1778828","url":null,"abstract":"With the introduction of integrated reporting, organisations are now encouraged to integrate sustainability disclosures within their integrated reports, in addition to traditional sustainability reporting practices. The purpose of this study is to investigate whether the International < IR > Framework (the Framework) led to a change in how South African listed companies included sustainability disclosures in their integrated reports, looking specifically at the degree of integration of sustainability disclosures, the use of sustainability key performance indicators (KPIs), and the materiality and balance of sustainability disclosures included, which are all based on principles in the Framework. Interpretive content analysis is used to compare the integrated reports in 2011, when integrated reporting became mandatory in South Africa, and 2015, when the Framework was adopted. The results show that there was a significant change in the level of integration and materiality of sustainability disclosures, but there was no significant change in the use of KPIs and the balance of disclosures. This study does not seek to measure the quality of the sustainability disclosures included in the integrated reports beyond the level of the application of Framework principles. This study provides unique insight into how South African companies adapted their sustainability disclosures within their integrated reports in response to the Framework.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"35 1","pages":"42 - 68"},"PeriodicalIF":1.1,"publicationDate":"2021-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1778828","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46093423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Students’ experience of pervasive skills acquired through sponsored projects in an undergraduate accounting degree","authors":"M. Malan, V. Dyk","doi":"10.1080/10291954.2020.1827851","DOIUrl":"https://doi.org/10.1080/10291954.2020.1827851","url":null,"abstract":"An accounting graduate should not only possess technical knowledge, but also core competencies and pervasive skills necessary to meet the needs of employers and society as a whole. This study is centred on the undergraduate accounting programme of a South African university where several sponsored projects are offered to develop these skills. An exploratory design using purposive sampling was used to gain insights into the perceptions of students on whether these skills were developed throughout their degree. It was found that the students perceived the projects to have developed their critical thinking and problem-solving skills, promoted their ethical awareness and enhanced their communication skills. Students further gained a better understanding of the role of an accountant through their participation in the sponsored projects and found them effective learning experiences. The challenges reported by students were the social aspect of the projects and the ability to work successfully in a team.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"35 1","pages":"130 - 150"},"PeriodicalIF":1.1,"publicationDate":"2020-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1827851","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43563961","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"VAT lottery incentives: An opportunity for South Africa?","authors":"Manda Burger, Anculien Schoeman","doi":"10.1080/10291954.2020.1832309","DOIUrl":"https://doi.org/10.1080/10291954.2020.1832309","url":null,"abstract":"Some countries have introduced receipt-based tax lotteries (value-added tax (VAT) lotteries) in recent years in an effort to improve tax compliance. This acknowledges that the traditional method of tax compliance enforcement through audits, fines and penalties alone may no longer be optimal. The idea of a VAT lottery is to incentivise consumers to ask for a receipt when paying for goods or services, which serves as a lottery ticket that gives the consumer an opportunity to win a prize. The decline in tax compliance globally poses a threat to revenue collection and, ultimately, to governments’ ability to meet their spending commitments. Other countries, but particularly South Africa, may benefit from implementing a VAT lottery to assist in improved VAT collection. This study aims to analyse VAT lotteries that have been implemented across the world – particularly in the European Union (EU) member countries – through a systematised review in order to determine whether such a lottery could improve taxpayer compliance in South Africa. Of the six EU member countries analysed in detail, four showed a decrease in the VAT gap in the years following the VAT lottery implementation. VAT gap data post-implementation was not available for two of the countries. Positive results include an increase in the number of vendors reported for refusing to issue invoices, a reduction in the number of non-validated receipts, and increased VAT collection. The finance ministers of two countries, and the Ministry of Finance of another, publicly declared the VAT lotteries successful.","PeriodicalId":43731,"journal":{"name":"South African Journal of Accounting Research","volume":"35 1","pages":"111 - 129"},"PeriodicalIF":1.1,"publicationDate":"2020-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10291954.2020.1832309","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46201920","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}