Financial reporting policy in a dynamic environment

To cope with the increasing globalisation of capital markets, financial regulators in Australia have embarked on an ambitious program to converge national accounting standards with International Financial Reporting Standards. The convergence program means a significant departure from present financial reporting policy and will necessitate substantial change by reporting entities. The effectiveness of the existing differential reporting policy is drawn into question in the light of the changes taking place. An evaluation of the perceptions of the effectiveness of the extant differential reporting model is undertaken and alternative policy approaches considered. The findings indicate that certain aspects of the differential reporting model have inherent problems not necessarily related to the recent policy change and that corrective action needs to be undertaken to maintain its relevance.

Cross-sector transfer of consolidated financial reporting - conceptual concerns

This article addresses a major concern about the use of particular accounting concepts, notably those of control and assets, for whole-of-government consolidated financial reporting. While whole-of-government consolidated financial reports may resemble the formats required by accounting standards and so provide a benchmark for comparative purposes, inherent weakness in the specification of underpinning concepts means that proper and full application of the consolidation methodology cannot be assumed. A study of the whole-of-government consolidated financial reports of the Commonwealth, state and territory governments of Australia revealed that significant assets, obligations and controlled entities have not been included.

Crisis of meanings : divergent experiences and perceptions of the marine environment in Victoria, Australia

The oceans of the world are regularly depicted as under threat from human exploitation with the problem portrayed as being of 'global' concern. In a world market characterised by the division of labour, many of those who eat fish do so without directly experiencing the ocean as a domain of productive utility. Rather, their encounters are with representations that depict the 'natural' world as an aesthetic object of contemplation, and environmentalist discourses that identify human activities as' threatening marine ecosystems. So prevalent is this experience that tangible institutions, such as state fisheries management bodies, have emerged, acting to reinforce the ontology of this 'contemplated' ocean, giving weight to the illusion that humans can, and should, appreciate it only from afar. In this representation, commercial fishers are regularly depicted as transgressing a 'natural' boundary between humans and the environment. It is when the world is simultaneously encountered as an object of consumptive utility and aesthetic utility that the human role in the environment becomes ambiguous and a sense of crisis arises. This paper investigates disjunctions in experiences and understandings that contribute to environmental anxiety, and debates over the appropriate use of the ocean.

Development of strategies to increase commercial production of mohair and cashmere in Australia

We aimed to identify impediments to investing into mohair and cashmere production and to suggest programs and strategies to attract investors. Targeted interviews of people focussed on attributes of an investment opportunity. Analysis differentiated views of small and large-scale producers and those not involved in these industries. Potential investors into mohair and cashmere make decisions based on the compatibility of the enterprise to their farm system, the technical, financial and market feasibility of the enterprise and its comparative advantage with other possible courses of action. They are sceptical of information coming from within these industries that is not sufficiently supported by fact. There are many implications from these findings including the need for the industries to: understand the investment decision process; provide objective financial and benchmarking data; make information more accessible; overcome resistance to these industries; and increase the visibility of the industries.

Meeting the challenge of establishing commercial mohair enterprises by building an interactive enterprise management and financial model

To assist in attracting investors into mohair production in Australia, a production and financial model was built as a learning and support tool. The work aimed to reduce search time and thinking costs about the impact of management strategies on financial feasibility. Various management strategies and assumptions applied to a case study with 300 breeding Angora does and eight variations. The results showed an internal rate of return for mohair ranging from 9.3% to 21.2% over 12 years, a median gross margin per effective hectare ranging from $82 to $167, cash at bank in year 12 ranging from $8,700 to $56,800 and net enterprise assets ranging from $69,900 to $155,700. A key benefit of the model was its ability to allow new farmers to explore potential management strategies and their assumptions about a future enterprise before investing.

An examination of the range of self-funding options available to regional galleries and an assessment of their suitability for use in those institutions

Researches the suitability of a variety of self-funding options available to regional galleries in Australia. An overview of the range of current self-funding practices is given. Each option is mapped according to its impact on core/value added services and its effect on primary/secondary users and assessed for suitability using these criteria.

Comparability of German and Australian disclosures in financial reports

Reports an international comparison between Australian and German company annual reports. The theoretical framework was drawn from Hofstede's analysis of national cultural value dimensions and Gray's accounting sub-cultural values. The results, using the method developed by Van der Tas, showed low levels of international harmony on accounting policies.

Connection between commonly used financial ratios and misrepresentation of financial statements of collapsed corporations

This paper unravels dynamic and intriguing shifts in the use of financial ratios in signaling corporate collapse. An empirical examination of the anecdotal evidences from notable recent corporate collapses coupled with the short-lived usefulness of financial ratios in various prediction models suggest that companies(1) that deliberately misrepresent their financial statements may have taken cues from the ratios that are commonly investigated. This proposition is supported by an extensive examination of over 50 studies conducted between 1968 and 2002. The erosion in the reliability of numbers in financial statements has led to significant distortions in the predictive power of financial ratios when used in signaling corporate collapse. Recent collapses such as Parmalat in Europe, Enron and WorldCom in the U.S. and HIH in Australia, present yet another reminder that financial statement items are being misrepresented. These are all large corporations with well-established household names, and are for sure closely monitored by financial communities around the globe. Nevertheless, a common thread seems to link the collapse of these companies: none of these collapses were foreseen by credit rating agencies or foretold by the widely accepted bankruptcy prediction models. Why? This paper attempts to use some anecdotal evidence in order to provide logical explanations to the existence of such a common thread. It argues that there appears to be anecdotal evidence to suggest that directors of publicly listed companies that have collapsed may have deliberately misrepresented financial statement items.

Board behaviour and the global financial crisis : time for a holistic approach to governance

The heightened focus on corporate governance in the aftermath of the financial crisis and in particular the failure of boards to protect their corporations indicates the timeliness of this paper. Although corporate governance has been traditionally linked to control and compliance, the complexities of the 21st Century have focused attention on the need for more holistic approaches. This paper picks up these developments and using interpretive research, analyses thirteen in-depth interviews conducted with board members and senior management, before and after the crisis. The longitudinal data provides valuable insight into the role of boards, their behaviour, culture and decision-making structures.

Globalising water accounting : lessons from the globalisation of financial reporting

Water management is a matter of global concern. To underpin sound management of water scarcity and quality issues requires high quality, consistent, understandable and credible information. In a world first, accounting and water industry experts in Australia have developed a system of water accounting as an accounting sub-discipline, analogous to financial accounting to guide national and intra-national decision-making. With a conceptual framework and a Preliminary Australian Water Accounting Standard in place, Australia’s approach is being evaluated internationally within the water and mining industries. Its fate as a discipline will depend upon regulatory politics as well as the intellectual and practical rigour of the system and the rate of its adoption. In this paper, we explore the application to water accounting of regulatory theories that have been valuable to gaining an understanding of financial accounting standards development. We predict the international path of the water accounting a sub-discipline of accounting, as an outcome of political forces.

Perceptions of representatives of public, private, and community sector institutions of the barriers and enablers for physically active transport

Active transport bridges many shared concerns in the public health and transport sectors. To positively affect opportunities for active transport, public health and transport professionals are engaging with other sectors, including urban planning, housing, recreation, retail, education, and employer groups. A first step in such inter-sectoral collaboration is to understand the perceptions of key players in all of these sectors. This paper describes the results of structured interviews with senior and middle-level administrators from public, private, and community groups in a rapidly developing region in Queensland, Australia, to assess the perceived barriers and enablers to active transport. Key themes emerged relating to infrastructure delivery, public transport services, walk- and cycle-friendly community attributes, political leadership and government coordination, and societal travel norms and culture. There were also themes relating to limits due to resources and limited relevant technical expertise, institutional and practitioner cultures, and agencies not identifying with their roles in active transport. Policies and cross-government initiatives were seen to hold promise, including economic incentives and built environment guidelines, campaigns targeting public attitudes and opinions, and community participation in policy-making. These elements are potential keys to positively promoting comprehensive active transport initiatives among gatekeepers and leaders across different sectors.

Theorising stigma and the experiences of injecting drug users in Australia

This paper examines the stigma of injecting drug use as an underlying factor in the poor health status of
Australian injecting drug users. Drawing on various models of stigma described in the literature, we examine injecting drug users’ experiences. As a case study, examples from Victorian (specifically Melbourne) policy and practice are included to exemplify community and societal attitudes towards injecting drug users and the implications of these for injecting drug user health. We conclude that redressing the negative effects of stigma requires political will, financial support, increased community commitment and a better understanding of the links between the social determinant of health and the poor health status of injecting drug users.Without reducing the stigma of injecting drug use the health of this marginalised population is likely to get worse, which will have broader negative population health effects.

The decision to demutualise : an analysis of the pressures for change. The case of life insurers in Australia and South Africa a comparative perspective

Since the 1980s a wave of demutualisations have occurred across a range of industries from stock exchanges to building societies, savings and loans associations and insurers. In both Australia and South Africa this has had a marked effect on the life insurance markets which had been dominated by mutual life insurers for 150 years. This paper adopts a case study approach to analyse the key drivers of organisational change. It examines the experiences of the Australian Mutual Provident (Australia’s oldest and largest life insurance mutual) and Sanlam (the second largest mutual life office in South Africa) as they proceeded down the path to demutualisation. It suggests a complex array of factors combined to place pressure on the existing mutual structures.

The economic impact of progressive neurological illness on quality of life in Australia

The current study examined the impact of financial costs and self-reported economic pressure on the quality of life of patients with progressive neurological illness. Participants were 423 people from four illness groups in Australia. Participants completed measures of: 1. quality of life, 2. income, 3. expenses, 4. economic pressure, 5. social support, 6. relationship satisfaction, and 7. severity of illness. There was a strong negative association between quality of life and economic pressure (but not income or expenses) for all groups. Subjective assessment of economic pressure was strongly associated with quality of life for people with motor neurone disease and multiple sclerosis. Implications of these results for assisting people with progressive neurological illnesses to cope with the financial changes that occur due to their illness are discussed.

The Canadian response to Aboriginal residential schools : lessons for Australia and the United States?

The common policy of the Australian, Canadian and United States governments of removing aboriginal children from their families and placing them in institutions is now well documented. This article considers the responses to the stolen generations in Australia, Canada and United States. A major focus of the article is the historic compensation package agreed to by the Canadian government. Whilst the Canadian federal government has not been without criticism on this issue, it must be applauded for its efforts to meet a peaceful solution to a tragic past. The political responses in Australia and United States and Canada are simply incomparable. The failure to address the plight of the stolen generations of Australia and the United States evidences a major failing in Indian/Aboriginal policy in these two nations that needs to be addressed. Australia and the United States have much to learn from the reconciliatory policies of the Canadian government.