scholarly journals Content requirements for narrative reporting in the public sector: a contextual perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benson Igboke ◽  
Razaq Raj
Keyword(s):  
Public Sector ◽  
Service Delivery ◽  
Financial Reporting ◽  
Information Needs ◽  
Financial Statements ◽  
Financial Reports ◽  
Content Type ◽  
The Public ◽  
Narrative Reporting ◽  
The Impact

Purpose Accounting literature is definite about the content and presentation of traditional financial statements, but the basic information to be provided in the narrative reports of public sector entities remains unsettled. This paper aims to investigate the needs and expectations of stakeholders (primary users and preparers) regarding the content and presentation of narrative reports in the public sector of Nigeria. Design/methodology/approach The research used a qualitative approach that draws on stakeholder and contingency theories to collect primary data through in-depth individual interviews using semi-structured questionnaires. Data were analysed by a thematic method using the NVivo 11 Pro software package. Findings The study reveals that financial statements constitute the statutory financial reports of public sector entities in Nigeria as narrative reporting is undeveloped, both as a concept and in practice. Stakeholders believe that narrative reporting is required to enhance the accountability usefulness of the annual financial reports published by the government and public agencies. Data analysis further reveals that public perception about the management of government financial resources influences the information needs of stakeholders regarding financial reporting. In addition, stakeholders consider the approved budget as the cornerstone of public financial reporting. Accordingly, users and other stakeholders expect public sector narrative reports to provide budget-based performance information that relates the accounting data presented in the financial statements to the key budgetary provisions, in both financial outlays and service delivery achievements. Stakeholders also expect narrative reports to be presented in plain language and provide information about the impact of financial decisions and actions on the basic socioeconomic variables that signpost citizens’ well-being, such as education, health care, employment and security. Practical implications The study suggests that the inclusion of narrative information in the statutory financial reports of public entities in Nigeria is imperative and should engage the attention of policymakers and relevant regulatory authorities. In addition, a more elaborate systematic investigation of the information needs of stakeholders in Nigeria should be undertaken by relevant units of government. Originality/value To the best of the authors’ knowledge, this is the first documented research on narrative reporting and the information needs of a broad range of stakeholders in the public sector of Nigeria. The paper identifies the approved budget as the focal point of governmental financial reporting, and a clear linkage between budget provisions, accounting results and service delivery achievements as the basic content of a narrative report in developing countries.

scholarly journals The impact of latest changes in Financial Reporting on Stakeholders’ Confidence and Satisfaction.

2021 ◽  
Vol 23 (07) ◽  
pp. 930-949
Author(s):  
Dr. Dolly Roy Choudhary ◽  
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Financial Statements ◽  
General Purpose ◽  
Corporate Disclosure ◽  
The Public ◽  
Common Information ◽  
External Stakeholders ◽  
Important Input ◽  
The Impact

This paper focuses on how the latest changes in corporate financial reporting have an impact on the stakeholders i.e. the shareholders, employees, management, creditors, auditors, suppliers, and the public in general. Financial information serves as an important input and guides for informed decision-making in an economic environment. The financial statements are one of the most important bases on which the internal and external stakeholders reach effective decisions. The idea of “General Purpose Financial Reporting” is directed to the common information needs of users and stakeholders. This study attempts to assess whether the stakeholder’s confidence and satisfaction are enhanced by the nature and extent of information that is made available to the stakeholders and the practices of corporate disclosure in annual accounts.

Satisfaction gap in public sector financial reporting

2016 ◽  
Vol 6 (3) ◽  
pp. 232-253
Author(s):  
Maria Krambia-Kapardis ◽  
Colin Clark ◽  
Anastasios Zopiatis
Keyword(s):  
Public Sector ◽  
Financial Crisis ◽  
Financial Reporting ◽  
Information Needs ◽  
Significant Information ◽  
Financial Reports ◽  
Content Type ◽  
Expectation Gap ◽  
Consultation Paper

Purpose – Public information disclosure is a manifestation of transparency and contributes to governance-by-disclosure. Also, better financial reporting can improve the credibility and integrity of public finances and contribute to a better management of public resources. A survey was carried out in Cyprus of users’ of public financial reports concerning an expectation gap about the types of information included in such reports (information needs expectation gap) as well as the quality of such information (information quality satisfaction gap). The paper aims to discuss these issues. Design/methodology/approach – Two focus groups of users and preparers of public financial reports were used to construct the questionnaire. Users of such reports, who belonged to all three categories of public sector financial reporting identified by IPSASB, were surveyed. The quantitative data obtained was analysed using SPSS and quadrant analysis to answer the research questions posed. Findings – Data from 101 respondents confirmed that each of the information needs identified in the IPSASB Consultation Paper (2008) was rated as being a significant information need. Data analysis also showed that both types of expectation gap exist, especially as far as local authority and semi-public organisations are concerned. Research limitations/implications – The response rate in the self-administered survey was admittedly rather low but it was not unexpected mainly due to the survey’s very specialised nature and the tendency by people in Cyprus not to critique public bodies. Practical implications – Deficient financial public sector reporting means the auditor general is not able to adequately express an opinion on public spending at the local government level. This, in turn, means taxpayers do not get the quality of services they pay for. At the same time, the lack of information transparency means corrupt practices are not eradicated. One answer to the problem would be legislating the content of public financial reports. Social implications – The lack of governance-by-public exposure means that services to the local community cost a lot more, due to corruption and inefficiency. In addition, it contributes to lowering market confidence and eventually contributes to financial crisis at the national level. Originality/value – The survey conducted was the first of its kind in Cyprus to investigate financial public sector reporting and document both manifestations of the expectation gap. In addition, information needs identified in the IPSASB Consultation Paper (2008) was rated as significantly needed and this is the first time it has been done in Eurozone member state and in a country facing a financial crisis.

Indigenous reporting of a national housing corporation

2018 ◽  
Vol 36 (2) ◽  
pp. 221-233 ◽  
Author(s):  
Alistair Brown
Keyword(s):  
Papua New Guinea ◽  
Financial Reporting ◽  
Local Level ◽  
New Guinea ◽  
Financial Statements ◽  
Financial Reports ◽  
Content Type ◽  
Housing Corporation ◽  
Regulatory Instruments ◽  
National Housing

Purpose The purpose of this paper is to assess the level of reporting compliance achieved by the National Housing Corporation (NHC) of Papua New Guinea in terms of local indigenous reporting expectations. Design/methodology/approach Testing of a framework of indigenous accountability through indigenous enactments and regulations is conducted by textual analysis, which is informed by the theory of indigenous alternatives to assess the financial reporting compliance of the NHC of Papua New Guinea’s financial statements for years ending 2004-2013. Findings Documentary evidence of the state auditor reports of the NHC’s financial statements reveals that the corporation’s financial reports are not submitted for audit on a timely basis and receive disclaimed audit opinions. Despite the clear indigenous reporting expectations raised by local legislative and regulatory instruments, the NHC is unable or unwilling to provide an accurate account of their activities. Practical implications The lack of compliant reporting suggests that the planning, management and monitoring of the housing needs of residents of Papua New Guinea are compromised. There also appears merit in asking why parliament continues to fund the corporation given its difficulties in meeting local-level reporting expectations. Social implications The results have wider implications for the reporting ideologies of indigenous-run housing corporations operating in other developing countries. It might be fruitful to meet local reporting expectations before taking on the specialized reporting that accompanies introduced western-oriented policies on housing. Originality/value Accountability in relation to indigenous property management is constructed through a lens of reporting issues facing a developing country housing corporation.

Research from China finds no significant difference in impact of public service motivation (PSM) in public and private sectors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Employee Performance ◽  
Intention To Leave ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Significant Difference ◽  
Set Up ◽  
The Impact

Purpose The authors assumed PSM would be higher in the public sector, but they set up a trial to find out if this was the case. Design/methodology/approach To test their theories, the authors conducted two independent surveys. The first consisted of 220 usable responses from public sector employees in Changsha, China. The second survey involved 260 usable responses from private sector employees taking an MBA course at a university in the Changsha district. A questionnaire was used to assess attitudes. Findings The results found no significant difference between the impact of public sector motivation (PSM) on employee performance across the public and private sectors. The data showed that PSM had a significant impact on self-reported employee performance, but the relationship did not differ much between sectors. Meanwhile, it was in the private sector that PSM had the greatest impact on intention to leave. Originality/value The authors said the research project was one of the first to test if the concept of PSM operated in the same way across sectors. It also contributed, they said, to the ongoing debate about PSM in China.

Effects of leadership and accounting capacity on accountability through the quality of financial reporting by public organisations in Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yen Thi Tran ◽  
Nguyen Phong Nguyen ◽  
Trang Cam Hoang
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Equation Modeling ◽  
Content Type ◽  
Research Results ◽  
Public Organisations ◽  
The Impact

Purpose By drawing on the institutional theory and contingency theory, this study aims to examine the effects of leadership and accounting capacity on the quality of financial reporting and accountability of public organisations in Vietnam. Furthermore, this paper is to determine the impact of financial reporting quality on accountability. Design/methodology/approach The research model and hypotheses have been tested by partial least squares structural equation modeling, with 177 survey samples obtained from accountants and managers working in the public sector in Vietnam. Findings The research results indicate that leadership and accounting capacity have a positive effect on financial reporting quality; leadership and accounting capacity positively influence accountability; and the quality of financial reporting has a positive impact on accountability. Research limitations/implications The research results provide empirical evidence of the direct impact of leadership and accounting capacity on financial reporting quality and accountability of public organisations in a developing country. Moreover, the current work also provides important evidence for the impact of financial reporting quality on accountability. Practical implications Public sector organisations must realise that leadership and accounting capacity play a vital role in the accounting reform process. Public institutions likewise need to pay attention to develop accounting capacity and promote leadership. Moreover, the results respond to the continuing call for increased citizen trust in public organisations. Originality/value To the best of the authors’ knowledge, this study is the first to examine the chain from leadership, accounting capacity, financial reporting quality and accountability in the context of public sector organisations in an Asian transition market.

Corporate portfolio management in the public sector

2018 ◽  
Vol 37 (4) ◽  
pp. 333-340
Author(s):  
Saša Baškarada ◽  
Brian Hanlon
Keyword(s):  
Public Sector ◽  
Empirical Research ◽  
Portfolio Management ◽  
Content Type ◽  
The Public ◽  
Government Organizations ◽  
Business Units ◽  
Key Points ◽  
Public Sector Organizations ◽  
The Impact

PurposeAlthough corporate portfolio management (CPM) has been a popular tool for strategic management of multi-business portfolios in the private sector since the late 1960s, it has received limited attention in the public sector. Accordingly, empirical research on the use of CMP in government organizations is virtually non-existent. The purpose of this paper is to partially fill that gap in the literature by highlighting and discussing some of the key points that public sector organizations may need to consider when adopting CPM.Design/methodology/approachRather than deductively proposing and testing narrowly specified hypotheses, this study aims to answer a broad research question, namely: What are the key points that public sector organizations may need to consider when adopting CMP? Hence, the study adopts the qualitative interpretive research paradigm. The findings are based on empirical research conducted in a large Australian publicly funded research organization. Potential application of CPM was iteratively and incrementally explored with a reference group comprising 15 middle management representatives and several members of the senior leadership group over the course of one year.FindingsAssessment criteria traditionally used in CPM (e.g. growth potential and market share) are generally not applicable in public sector organizations. This paper suggests that government organizations should instead consider past performance and future potential of individual business units, which may be operationalized via capability (a function of human capital and associated resources/infrastructure) and delivery (a function of the demand for, and the impact of, relevant business units). The paper also highlights the importance of organization-wide consultation, evidence-based decision making, and contestability.Originality/valueFrom a practical perspective, the paper may assist public sector organizations with adapting and applying CPM. From a theoretical perspective, the paper highlights an important and relatively neglected research problem, and suggests several avenues for future research.

scholarly journals Accounting conservatism and uncertainty in business environments; using financial data of listed companies in the Tehran stock exchange

2020 ◽  
Vol 5 (2) ◽  
pp. 179-194
Author(s):  
Marziyeh Hejranijamil ◽  
Afsane Hejranijamil ◽  
Javad Shekarkhah
Keyword(s):  
Financial Reporting ◽  
Business Strategy ◽  
Stock Exchange ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Data ◽  
Financial Reports ◽  
Content Type ◽  
Business Environments ◽  
Natural Mechanism

PurposeApplying conservatism to the preparation of financial statements has been considered not only as a natural mechanism to protect the interests of the stockholders but also as a practical way to assist managers to deal with uncertainty in business environments. This study aimed to determine if increasing uncertainty can lead to raising the level of conservatism used in preparing financial statements. The result of the study could provide a better understanding of the factors that influence the level of applying conservative methods in accounting and financial reporting.Design/methodology/approachThe model introduced by Basu (1997) was used to measure accounting conservatism. Business strategy and alertness were considered as two proxies for classifying companies according to their level of uncertainty. By adding each proxy of uncertainty to the model and using the financial data of 183 companies for five years (from 2013 to 2018), the multiple regression models were estimated through EViews. It was assumed that inert companies and those with prospector strategy face a higher level of uncertainty. Consequently, they were expected to report their financial status conservatively.FindingsFindings revealed that companies, which adopted a prospector strategy, applied more conservative methods in their financial reports. This indicated that facing wider uncertainty results in reporting more conservatively, which could not be said about inert companies.Originality/valueThe current research is the first research undertaken in a developing country such as Iran, and the study's results may benefit other developing countries.

scholarly journals Heritage reporting by the Australian public sector

2019 ◽  
Vol 32 (2) ◽  
pp. 612-631 ◽  
Author(s):  
Peir Peir Woon ◽  
Bikram Chatterjee ◽  
Carolyn J. Cordery
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Public Management ◽  
Information Needs ◽  
New Public Management ◽  
Content Type ◽  
For Profit ◽  
Reporting Requirements ◽  
New Public ◽  
Proposed Model

Purpose The purpose of this paper is to contribute to the future development of heritage reporting in Australia. Public sector reporting of heritage has been a long-standing issue, due to shortcomings in (sector-neutral) for-profit-based financial reporting standards. Australia’s sector-neutral approach does not meet public sector users’ information needs. The authors develop a heritage reporting model to balance community and other stakeholders’ interests and address prior critiques. Design/methodology/approach The paper reviews heritage reporting requirements in Anglo-Western Countries, and analyses commentaries and research publications. It evaluates the existing reporting requirements in the context of new public management (which focusses on information and efficiency) and new public governance (NPG) (focussing on balancing interests and quality). Findings The paper proposes an NPG-based heritage reporting model which includes indicators of performance on the five UNESCO (1972) dimensions and operational guidelines issued by UNESCO (2015). These are identification, presentation, protection, conservation and transmission. The proposed model is consistent with the notion of US SFFAS 29 (the standard for Federal entities). Not all heritage must be capitalised and hence attachment of monetary value, but detailed disclosures are necessary. Research limitations/implications The authors expect the proposed heritage reporting model to better serve users of heritage information compared to the present Australian Accounting Standards Board 116: Property, Plant and Equipment. Originality/value The authors’ proposed model of heritage reporting attempts to answer Carnegie and Wolnizer’s (1995, 1999) six questions, addresses decades of concerns raised in previous literature and provides a new perspective to heritage reporting based on NPG that should better serve users’ needs.

The relationship between sustainability practices and financial performance of construction companies

2013 ◽  
Vol 2 (1) ◽  
pp. 6-27 ◽  
Author(s):  
Renard Y.J. Siew ◽  
Maria C.A. Balatbat ◽  
David G. Carmichael
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Health And Safety ◽  
Financial Ratios ◽  
Financial Reports ◽  
Content Type ◽  
Construction Companies ◽  
Wide Range ◽  
Sustainability Practices ◽  
The Impact

PurposeOver recent years, a number of companies have committed to sharing information relating to their environmental, social and governance (ESG) activities, in response to a higher demand for transparency from stakeholders. This paper aims to explore the impact of such reporting on the financial performance of construction companies.Design/methodology/approachThis paper first examines the state of non‐financial reporting of publicly‐listed construction companies on climate change, environmental management, environmental efficiency, health and safety, human capital, conduct, stakeholder engagement, governance and other matters deemed to be of concern to institutional investors. It then presents the results of an empirical study on the impact of issuing non‐financial reports and the extent of companies’ sustainability practices (represented by ESG scores) on the financial performance of the companies. Financial performance is measured via a range of financial ratios.FindingsThe paper finds that a majority of the publicly‐listed construction companies studied have low levels of reporting, while construction companies issuing non‐financial reports largely outperform those which do not in a number of selected financial ratios, although the correlation between financial performance and ESG scores is not strong.Originality/valueThe originality of this research lies in its use of “hard data”, and it is supported by a wide range of financial ratios; this is distinguished from the existing, largely qualitative literature.

Back to basics: fighting fraud and austerity

2015 ◽  
Vol 22 (2) ◽  
pp. 219-227
Author(s):  
Kwabena Frimpong
Keyword(s):  
Public Sector ◽  
Financial Crime ◽  
Content Type ◽  
The Public ◽  
Reference Guide ◽  
Secondary Sources ◽  
The Uk ◽  
The Impact ◽  
Resource Capacity

Purpose – This article aims to focus on the impact of the current austerity measures on UK public sector anti-fraud and financial crime investigative resource capacity building initiative developed over the years to tackle fraud against the public purse. Design/methodology/approach – The article draws on secondary sources of data and available literature on fraud and financial crime. Findings – Fraud is a challenge in the UK public sector but the cut-back on anti-fraud and financial crime investigative resources, given the scale of public sector fraud, the growing emphasis on accountability and the time of austerity with public money more exposed to fraud is arguably a back-door/u-turn policy on zero-tolerance approach in tackling public sector fraud and financial crime. There is the potential of this encouraging more fraud and financial crime against the public sector in the long term if measures are not taken to devise strategies for enhancing anti-fraud and financial crime investigative resource capacity. Research limitations/implications – The research implication for this article is that it opens an avenue for future studies to examine post austerity strategies for strengthening public sector anti-fraud and financial crime investigative resource strategies to deal with emerging fraud threats to UK public sector. Practical implications – This article acts as a reference guide for policymakers to reflect on the long-term adverse impact of the austerity on anti-fraud and financial crime investigative resource capacity and capability in tackling fraud public sector fraud. Originality/value – The paper attempts to present an alternative lens to examining the scale of UK public sector fraud problem rather than relying on headline story of declining fraud in UK.

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