No more blending of GAAP

Article Abstract:

The International Accounting Standards Committee (IASC) has revised IAS 1, 'Presentation of Financial Statements,' to minimize any ambiguity that usually result from the efforts of companies to reconcile international accounting standards with national requirements. The revised standard requires all reporting entities to state clearly that their financial statements comply with IAS if they have indeed complied with all the requirements of all applicable standards and with each applicable interpretation of the Standing Interpretations Committee. The revised IAS 1 acknowledges that there are rare occasions when the application of IASs may be inappropriate and may generate misleading results. In such cases, it requires companies to disclose enough information to allow users to decide whether noncompliance was justified and to make the necessary adjustments.

Standards, International aspects, Accounting, International Accounting Standards Board, Financial statements

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Tell the investors what they want to know

Article Abstract:

It is argued that the proposal to include forecast figures in financial reports is misguided. Contrary to the assertion that doing so could only help in the market's valuation of companies, the many problematic issues raised by forecasting actually make it an imprudent path for financial reporting to be taking. One of the major problems with forecasting is the difficulty of collecting the right information. Another is the inevitability of an element of bias creeping into the forecasting process. This is an important consideration since the value of forecast information lies in its credibility and objectiveness. Another issue that needs to be taken into account is whether investors really require forecast information. Empirical evidence indicates that successful investors are more likely to rely on their own judgment than on forecast results.

Analysis, Investor relations, Corporation reports, Company reports, Business forecasting

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Fine words, not enough numbers

Article Abstract:

The 'accounting philosophy' stated by South African Breweries (SAB) in its 1998 annual report invites an examination of its accounting practices. The company, one of the world's five biggest breweries, claimed that it is committed to providing extensive disclosure and explanations of its financial results to achieve full and responsible reporting. It expressed its support for the accounting frameworks articulated by the South African Institute of Chartered Accountants, the International Accounting Standards Committee (IASC) and the International Federation of Accountants. However, a close scrutiny of SAB's 1998 report suggests that the firm's support for the IASC's conceptual framework does not necessarily mean compliance with the Committee's accounting standards.

Beer & Other Malt Beverages, Breweries, Malt beverages, Accounting and auditing, Brewing industry, South African Breweries Ltd.

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