The role of the cash basis in limited purpose financial reporting

Simple item page
dc.contributor.advisorEveringham, Geoff Ken_ZA
dc.contributor.authorLotter, Willem Adriaanen_ZA
dc.date.accessioned2017-11-10T09:52:05Z
dc.date.available2017-11-10T09:52:05Z
dc.date.issued2010en_ZA
dc.date.updated2017-05-18T14:16:06Z
dc.description.abstractThe 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.identifier.apacitationLotter, W. A. (2010). <i>The role of the cash basis in limited purpose financial reporting</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,College of Accounting. Retrieved from http://hdl.handle.net/11427/26146en_ZA
dc.identifier.chicagocitationLotter, Willem Adriaan. <i>"The role of the cash basis in limited purpose financial reporting."</i> Thesis., University of Cape Town ,Faculty of Commerce ,College of Accounting, 2010. http://hdl.handle.net/11427/26146en_ZA
dc.identifier.citationLotter, W. 2010. The role of the cash basis in limited purpose financial reporting. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Lotter, Willem Adriaan AB - 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. DA - 2010 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2010 T1 - The role of the cash basis in limited purpose financial reporting TI - The role of the cash basis in limited purpose financial reporting UR - http://hdl.handle.net/11427/26146 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/26146
dc.identifier.vancouvercitationLotter WA. The role of the cash basis in limited purpose financial reporting. [Thesis]. University of Cape Town ,Faculty of Commerce ,College of Accounting, 2010 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/26146en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentCollege of Accountingen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherFinancial Accountingen_ZA
dc.titleThe role of the cash basis in limited purpose financial reportingen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetype
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Lotter_Willem_Adriaan_role_Cash_basis_2010_1.pdf
Size:
8.01 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.72 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Masters