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dc.contributor.authorBalshaw, Vanessaen_NZ
dc.contributor.authorLont, David Hen_NZ
dc.date.available2011-04-07T03:22:48Z
dc.date.copyright2009-08-18en_NZ
dc.identifier.citationBalshaw, V., & Lont, D. H. (2009). New Zealand Operating Expense Disclosure: The Impact of International Financial Reporting Standards on Early Adopters (Accountancy Working Paper Series No. 16). Working Paper Series. Retrieved from http://hdl.handle.net/10523/1567en
dc.identifier.urihttp://hdl.handle.net/10523/1567
dc.description.abstractPurpose – This purpose of this paper is to examine compliance with operating expense disclosure provisions contained in New Zealand approved accounting standards before and after the move to New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS). Prior research [Lont 2002] showed poor disclosure practices and we seek to determine if this has improved under international accounting standards for those who choose to adopt NZ IFRS prior to mandatory adoption. Design/methodology/approach – We use an empirical archival approach. While our sample size of early adopters is small, it does provide us with the unique ability to control for any temporal effects on disclosure practices. Findings – We find full compliance with operating expenses that are mandated such as depreciation, directors and auditor fees under both NZ Financial Reporting Standards (NZ FRS) and NZ IFRS. However, unspecified operating expense disclosures are still poor for those using NZ FRS. We also find a substantial improvement in unspecified disclosure levels for those companies using the New Zealand Equivalent to International Accounting Standard 1 (NZ IAS 1). However, our results also show areas of concern, for example, 14% of listed companies using NZ IAS 1 did not disclose any unspecified expense items and 27% of listed companies disclosed only one item. Practical Implications – Our results should be of relevance to preparers, analysts and regulators. Our preliminary results were provided to the New Zealand Securities Commission which led it to issuing a statement expressing concern with such behaviour. Originality/value – Adequate disclosure is considered a crucial element to help ensure efficient capital markets. The paper provides empirical insights into operating expense disclosure based on the requirements and wording contained within NZ FRS and NZ IFRS.en_NZ
dc.format.mimetypeapplication/pdf
dc.publisherWorking Paper Seriesen_NZ
dc.relation.ispartofseriesAccountancy Working Paper Seriesen_NZ
dc.relation.replaces1607en_NZ
dc.subjectExpense Disclosureen_NZ
dc.subjectInternational Financial Reporting Standardsen_NZ
dc.subjectNZ IFRSen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.titleNew Zealand Operating Expense Disclosure: The Impact of International Financial Reporting Standards on Early Adoptersen_NZ
dc.typeWorking Paperen_NZ
dc.description.versionUnpublisheden_NZ
otago.date.accession2009-12-07 19:42:49en_NZ
otago.schoolAccountancy and Business Lawen_NZ
otago.openaccessOpen
otago.place.publicationDunedin, New Zealanden_NZ
dc.identifier.eprints867en_NZ
otago.school.eprintsAccountancy & Business Lawen_NZ
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