The role of the cash basis in limited purpose financial reporting

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dc.contributor.advisor Everingham, Geoff K en_ZA
dc.contributor.author Lotter, Willem Adriaan en_ZA
dc.date.accessioned 2017-11-10T09:52:05Z
dc.date.available 2017-11-10T09:52:05Z
dc.date.issued 2010 en_ZA
dc.identifier.uri http://hdl.handle.net/11427/26146
dc.description.abstract The strictly regulated environment within which corporate accounting practice evolves, has traditionally paid little attention to the owner-managed corporation and the specific information needs of its owners. The literature, as well as recent corporate law amendments, though, hints strongly that owner-managed entities have different financial reporting priorities than their publicly accountable counterparts. This difference in financial reporting priorities calls for rethinking at the most fundamental level of financial reporting, i.e. accrual versus cash-basis financial reporting. This implies that the debate about the extent of sophistication that should be built into the accrual-basis model can only be conducted sensibly after the primary debate of accrual versus cash-basis, is resolved satisfactorily. The question as to whether measurement and recognition criteria within an accrual-basis model should be relaxed is therefore part of the secondary debate. The basic research question relates to the usefulness to owner-managers of cash-basis accounting compared to accrual-basis accounting. This thesis reports on the responses of 243 practising members of the South African Institute of Professional Accountants (SAIPA) regarding owner-manager needs and preferences regarding financial accounting recording and reporting practices. Semi- structured interviews were conducted with owner-managers to verify the understanding of the practitioners regarding owner-manager needs and preferences. The results showed and explained an apparent paradox: owner-managers have a strong cash focus in the way they understand and use financial information, but nevertheless prefer accrual-basis annual financial statements. The unresolved challenge identified by this study is to design a financial report which could better bridge the gap between accrual-basis and cash-basis accounting than the conventional statement of cash flow. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Financial Accounting en_ZA
dc.title The role of the cash basis in limited purpose financial reporting en_ZA
dc.type Thesis en_ZA
dc.date.updated 2017-05-18T14:16:06Z
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department College of Accounting en_ZA
dc.type.qualificationlevel Masters en_ZA
dc.type.qualificationname MCom en_ZA
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uct.type.filetype Text
uct.type.filetype Image


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