Understandability and Transparency of the Financial Statements of ...

Programme refers to a meeting of
objectives i.e. outcomes relating to an
activity.
Public is where there is a direct
accountability relationship between
public servants and the public.
Social is the impact the charity has on
other organisations, individuals and the
environment.
Upward to financial supporters and
oversight bodies.
(Cordery & Baskerville, 2005; Dellaportas et
al., 2008; Flack & Ryan, 2004; Stewart,
1984)
(Flack & Ryan, 2004; Narayan, 2006)
(Ahmed & Wickramsinghe, 2009; Jayasinghe
& Soobaroyen, 2009; Lindkvist & Llewellyn,
2003)
(Adams, 2004; Agyemang et al., 2009;
Ahmed & Wickramsinghe, 2009; Association
of Chartered Certified Accountants, 2006;
Connolly & Dhanani, 2009; Cordery, 2008;
Dhanani, 2009; Jayasinghe & Soobaroyen,
2009; O'Dwyer & Unerman, 2008)
Table 5-4 Concepts of Accountability
For this research the distinction is not between standards and judgement, but rather
between financial and performance accountability, which together incorporate several
other concepts of accountability as can be seen from Table 5-5.
Financial Accountability
(Findings Chapter Six & Seven)
Financial accountability encompasses a
wide range of concepts including:
compliance; control; fiduciary; fiscal;
process; professional; and probity.
Table 5-5 Aspects of Charity Accountability
Performance Accountability
(Findings Chapter Eight)
Performance accountability also
incorporates:
programme
managerial and
This research also draws on the theoretical constructs of hierarchical and holistic
accountability highlighted by O‟Dwyer & Unerman (2008) and has already looked at
accountability in relation to stakeholders (Chapter Five, section 5.3), which implicitly
relates to the following concepts of accountability: downward; negotiated; political;
public and upward. Implicit in this research is also the assumption that individuals act
ethically, which incorporates the concepts of individual and personal accountability.
Another category drawn on throughout this research is social accountability, which
considers the impacts charity has on its environment, including its stakeholders.
As shown in Table 5-5 the focus on reporting findings for this research will first be on
financial accountability, in particular professional accountability as reflected in the
production of financial statements compliant with appropriate GAAP, covered in
Chapter Six. Fiduciary accountability is covered in relation to compliance with
legislation and the need for monitoring, which is covered in Chapter Seven. Second,
performance accountability, which is associated with the efficiency and effectiveness of
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