Deriatives disclosure in corporate annual reports: bank analysts; perceptions of usefulness

Responding to mixed evidence on the decision-usefulness of annual report disclosures for derivative financial instruments to capital market participants, and concerns identified by practice, this paper examines usefulness in a direct study of user perceptions. Interviews with analysts from Australia’s four major banks reveal essential usefulness, limited by the disclosures’ failure to reflect companies’ actual use of derivatives throughout the period, and inability of users to understand companies’ off-balance sheet risk and risk management practices from information considered generic and boilerplate. The research complements and extends existing archival and survey research and provides new evidence suggesting low-cost ways for increasing usefulness. It supports the International Accounting Standards Board’s disclosure recommendations in its recent Discussion Paper: A Review of the Conceptual Framework for Financial Reporting, but, at the same time, highlights that for these proposed measures to be successful in relation to IFRS 7, they may need to address other issues. The research increases knowledge of the informational requirements of lenders, an important class of financial information user, and supports calls from practice for companies to improve their disclosure of material economic risks.

Confirmation of QTL mapping and marker validation for partial seedling resistance to crown rot in wheat line '2-49'

We have tested the efficacy of putative microsatellite single sequence repeat (SSR) markers, previously identified in a 2-49 (Gluyas Early/Gala) × Janz doubled haploid wheat (Triticum aestivum) population, as being linked to partial seedling resistance to crown rot disease caused by Fusarium pseudograminearum. The quantitative trait loci (QTLs) delineated by these markers have been tested for linkage to resistance in an independent Gluyas Early × Janz doubled haploid population. The presence of a major QTL on chromosome 1DL (QCr.usq-1D1) and a minor QTL on chromosome 2BS (QCr.usq-2B1) was confirmed. However, a putative minor QTL on chromosome 2A was not confirmed. The QTL on 1D was inherited from Gluyas Early, a direct parent of 2-49, whereas the 2B QTL was inherited from Janz. Three other putative QTLs identified in 2-49 × Janz (on 1AL, 4BL, and 7BS) were inherited by 2-49 from Gala and were not able to be confirmed in this study. The screening of SSR markers on a small sample of elite wheat genotypes indicated that not all of the most tightly linked SSR markers flanking the major QTLs on 1D and 1A were polymorphic in all backgrounds, indicating the need for additional flanking markers when backcrossing into some elite pedigrees. Comparison of SSR haplotypes with those of other genotypes exhibiting partial crown rot resistance suggests that additional, novel sources of crown rot resistance are available.

Genotypic variation in seedling root architectural traits and implications for drought adaptation in wheat (Triticum aestivum L.)

Root system characteristics are of fundamental importance to soil exploration and below-ground resource acquisition. Root architectural traits determine the in situ space-filling properties of a root system or root architecture. The growth angle of root axes is a principal component of root system architecture that has been strongly associated with acquisition efficiency in many crop species. The aims of this study were to examine the extent of genotypic variability for the growth angle and number of seminal roots in 27 current Australian and 3 CIMMYT wheat (Triticum aestivum L.) genotypes, and to quantify using fractal analysis the root system architecture of a subset of wheat genotypes contrasting in drought tolerance and seminal root characteristics. The growth angle and number of seminal roots showed significant genotypic variation among the wheat genotypes with values ranging from 36 to 56 (degrees) and 3 to 5 (plant-1), respectively. Cluster analysis of wheat genotypes based on similarity in their seminal root characteristics resulted in four groups. The group composition reflected to some extent the genetic background and environmental adaptation of genotypes. Wheat cultivars grown widely in the Mediterranean environments of southern and western Australia generally had wider growth angle and lower number of seminal axes. In contrast, cultivars with superior performance on deep clay soils in the northern cropping region, such as SeriM82, Baxter, Babax, and Dharwar Dry exhibited a narrower angle of seminal axes. The wheat genotypes also showed significant variation in fractal dimension (D). The D values calculated for the individual segments of each root system suggested that, compared to the standard cultivar Hartog, the drought-tolerant genotypes adapted to the northern region tended to distribute relatively more roots in the soil volume directly underneath the plant. These findings suggest that wheat root system architecture is closely linked to the angle of seminal root axes at the seedling stage. The implications of genotypic variation in the seminal root characteristics and fractal dimension for specific adaptation to drought environment types are discussed with emphasis on the possible exploitation of root architectural traits in breeding for improved wheat cultivars for water-limited environments.

Grazing management influences the dynamics of populations of Stylosanthes hippocampoides (Oxley fine stem stylo)

This paper describes a study to identify those factors which control the persistence of the Subtropical legume Stylosanthes hippocampoides, formerly S. guianensis cv. Oxley (fine stem stylo). The dynamics of S. hippocampoides populations was recorded in permanent quadrats at 2 stocking rates in a grazing study conducted between 1987 and 1992 in south-eastern Queensland. Density of mature plants fluctuated between 10 and 60 plants/m(2) during the 5 years with the major contributing factors being variations in seedling recruitment and survival, which, in turn, reflected the size of the soil seed bank and seasonal rainfall. Plant density was consistently higher at the lower stocking rate of 1 beast/1.5 ha compared with 1 beast/1 ha; however, the effect of stocking rate was minor compared with fluctuation due to seasonal variation in rainfall. The maximum life span of the original plants exceeded 5 years, while the survival of seedling cohorts was strongly impacted by seasonal rainfall. Total exclosure from grazing during summer increased the size of the soil seed bank although a precise time period during summer was not identified, while grazing at the lower stocking pressure produced the same outcome. It was concluded that the large seasonal variation that occurs in S. hippocampoides density is driven by large seasonal variation in seedling recruitment, which, in turn, is influenced by the size of the soil seed bank.

Control of the invasive liana, Hiptage benghalensis

The liana, hiptage (Hiptage benghalensis), is currently invading the wet tropics of northern Queensland and remnant bushland in south-eastern Queensland, Australia. Trials using seven herbicides and three application methods (foliar, basal bark, and cut stump) were undertaken at a site in north Queensland (158 700 hiptage plants ha−1). The foliar-applied herbicides were only effective in controlling the hiptage seedlings. Of the foliar herbicides trialed, dicamba, fluroxypyr, and triclopyr/picloram controlled >75% of the treated seedlings. On the larger plants, the cut stump applications were more effective than the basal bark treatments. Kills of >95% were obtained when the plants were cut close to ground level (5 cm) and treated with herbicides that were mixed with diesel (fluroxypyr and triclopyr/picloram), with water (glyphosate), or were applied neat (picloram). The costings for the cut stump treatment of a hiptage infestation (85 000 plants ha−1), excluding labor, would be $A14 324 ha−1 using picloram and $A5294 ha−1 and $A2676 ha−1, respectively, using glyphosate and fluroxypyr. Foliar application using dicamba for seedling control would cost $A1830 ha−1. The costs range from 2–17 cents per plant depending on the treatment. A lack of hiptage seeds below the soil surface, a high germinability (>98%) of the viable seeds, a low viability (0%) of 2 year old, laboratory-stored fruit, and a seedling density of 0.1 seedlings m−2 12 months after a control program indicate that hiptage might have a short-term seed bank. Protracted recolonization from the seed bank would therefore be unlikely after established seed-producing plants have been controlled.

What lies beneath? The pattern and abundance of the subterranean tuber bank of the invasive liana cat's claw creeper, Macfadyena unguis-cati (Bignoniaceae)

Cat’s claw creeper, Macfadyena unguis-cati (L.) Gentry (Bignoniaceae) is a major environmental weed of riparian areas, rainforest communities and remnant natural vegetation in coastal Queensland and New South Wales, Australia. In densely infested areas, it smothers standing vegetation, including large trees, and causes canopy collapse. Quantitative data on the ecology of this invasive vine are generally lacking. The present study examines the underground tuber traits of M. unguis-cati and explores their links with aboveground parameters at five infested sites spanning both riparian and inland vegetation. Tubers were abundant in terms of density (~1000 per m2), although small in size and low in level of interconnectivity. M. unguis-cati also exhibits multiple stems per plant. Of all traits screened, the link between stand (stem density) and tuber density was the most significant and yielded a promising bivariate relationship for the purposes of estimation, prediction and management of what lies beneath the soil surface of a given M. unguis-cati infestation site. The study also suggests that new recruitment is primarily from seeds, not from vegetative propagation as previously thought. The results highlight the need for future biological-control efforts to focus on introducing specialist seed- and pod-feeding insects to reduce seed-output.

Demography of three perennial grasses in a central Queensland eucalypt woodland.

The population dynamics of the palatable, perennial grasses Bothriochloa ewartiana (Domin) C.E.Hubb. (desert Mitchell grass), Chrysopogon fallax S.T.Blake (golden beard grass) and Heteropogon contortus (L.) P.Beauv. ex Roem. & Schult. (black speargrass), were studied in an extensive grazing study conducted in a eucalypt woodland within the Aristida-Bothriochloa pasture community in central Queensland between 1994 and 2000. Treatments were three grazing pressures based on light, medium and heavy utilisation of forage available at the end of summer and two timber treatments (trees intact and trees killed). Seasonal rainfall throughout this study was generally favourable for plant growth with no severe drought periods. Grazing pressure had a greater overall impact on plant dynamics than timber treatment, which had minimal impact. Grazing pressure had a large impact on H. contortus dynamics, an intermediate impact on B. ewartiana and no impact on C. fallax. Fluctuations in plant density of both B. ewartiana and C. fallax were small because both species were long lived with low levels of seedling recruitment and plant death, whereas fluctuations in H. contortus density were relatively high because of its relatively short life span and higher levels of both recruitment and death. Heavy grazing pressure increased the recruitment of B. ewartiana and H. contortus in some years but had no impact on that of C. fallax. Heavy grazing pressure reduced the survival of the original plants of both B. ewartiana and H.contortus but not of C. fallax. For H. contortus, the size of the original plants was larger where trees were killed than where trees were left intact and plants of the 1995 seedling cohort were larger in 1998 at heavy compared with those at light and medium grazing pressure. Grazing had a minor negative impact on the soil seed bank of H. contortus. Populations of all three species remained stable throughout this study, although the favourable seasonal rainfall experienced and the short duration of this study relative to the life span of these species may have masked longer term, deleterious impacts of heavy grazing pressure.

Comparative seed and dispersal ecology of three exotic subtropical Asparagus species

The genus Asparagus includes at least six invasive species in Australia. Asparagus aethiopicus and A. africanus are invasive in subtropical Australia, and a third species, A. virgatus is naturalized and demonstrates localized spread in south east Queensland. To better understand how the attributes of these species contribute to their invasiveness, we compared fruit and seed traits, germination, seedling emergence, seed survival, and time-to-maturity. We further investigated dispersal ecology of A. africanus, examining the diet of a local frugivore, the figbird (Sphecotheres viridis) and the effect of gut passage on seedling emergence. Overall, A. aethiopicus was superior in germination and emergence, with the highest mean germination (98.8%) and emergence (94.5%) under optimal conditions and higher emergence (mean of 73.3%) across all treatments. In contrast, A. africanus had the lowest germination under optimal conditions (71.7%) and low mean seedling emergence (49.5%), but had fruits with the highest relative yield (ratio of dry pulp to fruit fresh weight) that were favored by a local frugivore. Figbirds consumed large numbers of A. africanus fruits (~30% of all non-Ficus fruits), and seedling germination was not significantly affected by gut passage compared to unprocessed fruits. Asparagus virgatus germinated poorly under cool, light conditions (1.4%) despite a high optimum mean (95.0%) and had low mean performance across emergence treatments (36.3%). The species also had fruits with a low pulp return for frugivores. For all species, seed survival declined rapidly in the first 12 mo and fell to < 3.2% viability at 36 mo. On the basis of the traits considered, A. virgatus is unlikely to have the invasive potential of its congeners. Uniformly short seed survival times suggest that weed managers do not have to contend with a substantial persistent soil-stored seed bank, but frugivore-mediated dispersal beyond existing infestations will present a considerable management challenge.

Impact of control strategies on bellyache bush (Jatropha gossypiifolia L.) mortality, seedling recruitment, population dynamics, pasture yield and cost analysis

Bellyache bush (Jatropha gossypiifolia L.) is an invasive weed that has the potential to greatly reduce biodiversity and pasture productivity in northern Australia’s rangelands. This paper reports an approach to develop best practice options for controlling medium to dense infestations of bellyache bush using combinations of control methods. The efficacy of five single treatments including foliar spraying, slashing, stick raking, burning and do nothing (control) were compared against 15 combinations of these treatments over 4 successive years. Treatments were evaluated using several attributes, including plant mortality, changes in population demographics, seedling recruitment, pasture yield and cost of treatment. Foliar spraying once each year for 4 years proved the most cost-effective control strategy, with no bellyache bush plants recorded at the end of the study. Single applications of slashing, stick raking and to a lesser extent burning, when followed up with foliar spraying also led to significantly reduced densities of bellyache bush and changed the population from a growing one to a declining one. Total experimental cost estimates over 4 successive years for treatments where burning, stick raking, foliar spraying, and slashing were followed with foliar spraying were AU$408, AU$584, AU$802 and AU$789 ha–1, respectively. Maximum pasture yield of 5.4 t ha–1 occurred with repeated foliar spraying. This study recommends that treatment combinations using either foliar spraying alone or as a follow up with slashing, stick raking or burning are best practice options following consideration of the level of control, changes in pasture yield and cost effectiveness.

Improving information for the macadamia industry via an information "bank"

Macadamia growers are under increasing pressure to remain viable in an increasingly competitive global market. A key need is quick access to high quality information. Current industry information is poorly integrated, poorly updated, and because it is largely in hard-copy, is difficult to access efficiently. With the dramatic growth in the use of the internet by growers, as evidenced in a recent industry communications survey, an opportunity exists to address this problem through the development of a high quality, internet-based information “bank���. The bank would bring together the macadamia information resources and collective knowledge of R&D and other relevant agencies into a one-stop information shop, aligned more effectively with grower needs.

Soil seed bank longevity information for weed eradication target species

The longevity of seed in the soil is a key determinant of the cost and length of weed eradication programs. Soil seed bank information and ongoing research have input into the planning and reporting of two nationally cost shared weed eradication programs based in tropical north Queensland. These eradication programs are targeting serious weeds such as Chromoleana odorata, Mikania micrantha, Miconia calvescens, Clidemia hirta and Limnocharis flava. Various methods are available for estimating soil seed persistence. Field methods to estimate the total and germinable soil seed densities include seed packet burial trials, extracting seed from field soil samples, germinating seed in field soil samples and observations from native range seed bank studies. Interrogating field control records can also indicate the length of the control and monitoring periods needed to exhaust the seed bank. Recently, laboratory tests which rapidly age seed have provided an additional indicator of relative seed persistence. Each method has its advantages, drawbacks and logistical constraints.

Persistence of bellyache bush (Jatropha gossypifolia L.) soil seed banks

Bellyache bush (Jatropha gossypifolia L.) is an invasive shrub that adversely impacts agricultural and natural systems of northern Australia. While several techniques are available to control bellyache bush, depletion of soil seed banks is central to its management. A 10-year study determined the persistence of intact and ant-discarded bellyache bush seeds buried in shade cloth packets at six depths (ranging from 0 to 40 cm) under both natural rainfall and rainfall-excluded conditions. A second study monitored changes in seedling emergence over time, to provide an indication of the natural rate of seed bank depletion at two sites (rocky and heavy clay) following the physical removal of all bellyache bush plants. Persistence of seed in the burial trial varied depending on seed type, rainfall conditions and burial depth. No viable seeds of bellyache bush remained after 72 months irrespective of seed type under natural rainfall conditions. When rainfall was excluded seeds persisted for much longer, with a small portion (0.4%) of ant-discarded seeds still viable after 120 months. Seed persistence was prolonged (> 96 months to decline to < 1% viability) at all burial depths under rainfall-excluded conditions. In contrast, under natural rainfall, surface located seeds took twice as long (70 months) to decline to 1% viability compared with buried seeds (35 months). No seedling emergence was observed after 58 months and 36 months at the rocky and heavy clay soil sites, respectively. These results suggest that the required duration of control programs on bellyache bush may vary due to the effect of biotic and abiotic factors on persistence of soil seed banks.

Patterns of seed bank and size asymmetry of plant growth across varying sites in the invasive Lantana camara L. (Verbenaceae)

Lantana camara L. (Verbenaceae) is a weed of great significance in Australia and worldwide, but little is known about connections among components of its life history. We document over a 3-year period, the links between L. camara seed-bank dynamics and its above-ground growth, including size asymmetry in four land-use types (a farm, a hoop pine plantation and two open eucalypt forests) invaded by the weed near Brisbane, Queensland Australia. Seed-bank populations varied appreciably across sites and in response to rainfall and control measures, and they were higher (~1,000 seeds/m2) when annual rainfall was 15-30 % below the long-term yearly average. Fire reduced seed-bank populations but not the proportion germinating (6-8 %). Nearly a quarter of fresh seeds remain germinable after 3 years of soil burial. For small seedlings (<10 cm high), the expected trade-offs in two life-history traits-survival and growth-did not apply; rather the observed positive association between these two traits, coupled with a persistent seed-bank population could contribute to the invasiveness of the plant. Relationships between absolute growth rate and initial plant size (crown volume) were positively linear, suggesting that most populations are still at varying stages of the exponential phase of the sigmoid growth; this trend also suggests that at most sites and despite increasing stand density and limiting environmental resources of light and soil moisture, lantana growth is inversely size asymmetric. From the observed changes in measures of plant size inequality, asymmetric competition appeared limited in all the infestations surveyed. © 2013 Crown Copyright as represented by: Department of Agriculture, Fisheries and Forestry, Australia.

Identification of intersectional Corymbia hybrids based on seedling morphology improves with parental divergence

Differences in morphology have provided a basis for detecting natural interspecific hybridisation in forest trees for decades but have come to prominence again more recently as a means for directly measuring gene flow from planted forests. Here we examined the utility of seedling morphology for hybrid discrimination in three hybrid groups relevant to the monitoring of gene flow from plantings of Corymbia (L.D. Pryor & L.A.S. Johnson ex Brooker) taxa in subtropical Australia. Thirty leaf and stem characters were assessed on 907 8-month old seedlings from four parental and six hybrid taxa grown in a common garden. Outbred F1 hybrids between spotted gums (Corymbia citriodora subspecies variegata, C. citriodora subspecies citriodora and Corymbia henryi) tended to more closely resemble their maternal Corymbia torelliana parent and the most discriminating characters were the ratio of blade length to maximum perpendicular width, the presence or absence of a lignotuber, and specific leaf weight. Assignment of individuals into genealogical classes based on a multivariate model limited to a set of the more discriminating and independent characters was highest in the hybrid group, where parental taxa were genetically most divergent. Overall power to resolve among outbred F1 hybrids from both parental taxa was low to moderate, but this may not be a limitation to its likely major application of identifying hybrids in seedlots from native spotted gum stands. Advanced generation hybrids (outbred F2 and outbred backcrosses) were more difficult to resolve reliably due to the higher variances of hybrid taxa and the tendency of backcrosses to resemble their recurrent parents. Visual assessments of seedling morphology may provide a filter allowing screening of the large numbers needed to monitor gene flow, but will need to be combined with other hybrid detection methods to ensure hybrids are detected.