Understandability and Transparency of the Financial Statements of ...

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2.6 Monitoring ......................................................................................................... 35 2.6.1 Charities‟ Regulatory Bodies .................................................................... 36 2.6.2 Taxation Agencies ..................................................................................... 37 2.6.3 Funders ..................................................................................................... 38 2.6.4 Rating Agencies ........................................................................................ 39 2.7 Summary ............................................................................................................ 40 CHAPTER 3: TRANSPARENCY & UNDERSTANDABILITY ............................ 42 3.1 Introduction ........................................................................................................ 42 3.1.1 Transparency ............................................................................................ 42 3.1.2 Understandability ..................................................................................... 44 3.2 Complexities in Charities‟ Financial Statements ............................................... 47 3.2.1 Accounting basis ....................................................................................... 49 3.2.1.1 GAAP ................................................................................................. 49 3.2.1.2 Studies ................................................................................................. 51 3.2.2 Property, Plant and Equipment ................................................................ 52 3.2.2.1 GAAP ................................................................................................. 52 3.2.2.2 Studies ................................................................................................. 53 3.2.3 Fund accounting ....................................................................................... 55 3.2.3.1 GAAP ................................................................................................. 56 3.2.3.2 Studies ................................................................................................. 58 3.2.4 Expenditure overheads ratio ..................................................................... 62 3.2.4.1 GAAP ................................................................................................. 62 3.2.4.2 Studies ................................................................................................. 63 3.3 Summary ............................................................................................................ 67 CHAPTER 4: RESEARCH METHODOLOGY & METHOD ................................. 68 4.1 Introduction ........................................................................................................ 68 4.2 Research Problem .............................................................................................. 68 4.3 Methodological approach .................................................................................. 70 4.3.1 Axiom 1 - The nature of reality ................................................................. 70 4.3.2 Axiom 2 - The relationship of knower to known ....................................... 71 iv
4.3.3 Axiom 3 - The possibility of generalisation .............................................. 72 4.3.4 Axiom 4 - The possibility of causal linkages ............................................. 72 4.3.5 Axiom 5 - The role of values in inquiry..................................................... 73 4.4 Document review ............................................................................................... 73 4.5 Interviews .......................................................................................................... 76 4.5.1 Preplanning the Interview......................................................................... 78 4.5.2 Conducting Interviews .............................................................................. 83 4.5.3 Recording the interviews........................................................................... 87 4.6 Data Analysis: .................................................................................................... 90 4.6.1 Data reduction .......................................................................................... 90 4.6.2 Data interpretation ................................................................................... 91 4.7 Data Evaluation ................................................................................................. 92 4.7.1 Credibility ................................................................................................. 93 4.7.2 Transferability........................................................................................... 94 4.7.3 Dependability ............................................................................................ 94 4.7.4 Confirmability ........................................................................................... 95 4.8 Ethical implications ........................................................................................... 95 4.9 Summary ............................................................................................................ 96 CHAPTER 5: ACCOUNTABILITY ......................................................................... 97 5.1 Introduction ........................................................................................................ 97 5.2 Theorisation of Accountability .......................................................................... 97 5.2.1 Accountability in the Charities Sector ...................................................... 98 5.2.2 Accountability problems in the Charities Sector .................................... 100 5.3 To whom - Stakeholders .................................................................................. 102 5.4 Discharge of Accountability ............................................................................ 105 5.4.1 Accountability Documents ...................................................................... 105 5.4.1.1 Financial Statements ......................................................................... 106 5.4.1.2 Annual Report ................................................................................... 107 5.4.1.3 Performance reports .......................................................................... 108 v
Page 1 and 2: Understandability and Transparency
Page 3: CHAPTER 2: REGULATORY & CONCEPTUAL
Page 7 and 8: 6.6 Summary .......................
Page 9 and 10: Appendix One - Statement of Financi
Page 11 and 12: Abbreviations AASB Australian Accou
Page 13 and 14: Related Research Outputs The follow
Page 15 and 16: Acknowledgements My journey through
Page 17 and 18: Abstract Access to charities‟ fin
Page 19 and 20: CHAPTER 1: INTRODUCTION 1.1 Introdu
Page 21 and 22: More importantly the study will loo
Page 23 and 24: Unerman and O‟Dwyer (2008, p. 801
Page 25 and 26: adopted here is clarified, as the l
Page 27 and 28: March 1999. Further, a study by the
Page 29 and 30: those by: Vatter (1947); Anthony (1
Page 31 and 32: CHAPTER 2: REGULATORY & CONCEPTUAL
Page 33 and 34: (k) The erection, laying out, maint
Page 35 and 36: Before looking at the legal structu
Page 37 and 38: 2.3.4 Problems As with charity nome
Page 39 and 40: yet to be determined. This ensures
Page 41 and 42: per annum (Charities Commission, 20
Page 43 and 44: certain cases there will be concept
Page 45 and 46: The focus of the Charities Commissi
Page 47 and 48: Unlike incorporated societies, the
Page 49 and 50: 2.4.4.4 Future conceptual framework
Page 51 and 52: problems with New Zealand‟s regul
Page 53 and 54: This research seeks to identify if
Page 55 and 56:
charities” (Charity Commission, 2
Page 57 and 58:
statements in different documents t
Page 59 and 60:
seek to identify whether a lack of
Page 61 and 62:
In the international arena transpar
Page 63 and 64:
elevance is compromised. The link b
Page 65 and 66:
3.2 Complexities in Charities’ Fi
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3.2.1 Accounting basis The „Accou
Page 69 and 70:
application of the appropriate GAAP
Page 71 and 72:
length transaction”. This definit
Page 73 and 74:
There are four arguments against de
Page 75 and 76:
Financial Accounting Standards Boar
Page 77 and 78:
al., 2008; Newberry, 1992; Rees & D
Page 79 and 80:
However, the notion of control is a
Page 81 and 82:
Kilcullen et al., 2007b). Charities
Page 83 and 84:
the amount of money spent on admini
Page 85 and 86:
This research seeks to identify wha
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As a result of the literature revie
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the elements of the world, or rathe
Page 91 and 92:
come about through the mutually sim
Page 93 and 94:
Research reports from other organis
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clearer picture of the interviewee
Page 97 and 98:
In England, Palmer and Randall (200
Page 99 and 100:
APPROACHING PARTICIPANTS Within the
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availability of charities‟ financ
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As credibility was usually achieved
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clarifications. This approach was u
Page 107 and 108:
to understand the meaning behind an
Page 109 and 110:
analysis is both complete and impar
Page 111 and 112:
subjective realities (Chua, 1986).
Page 113 and 114:
To assure the study was dependable
Page 115 and 116:
CHAPTER 5: ACCOUNTABILITY 5.1 Intro
Page 117 and 118:
emphasis on the definition of accou
Page 119 and 120:
supposition was that a lack of resp
Page 121 and 122:
general public (Charity Commission,
Page 123 and 124:
assumes the other is monitoring the
Page 125 and 126:
performance reporting rather than f
Page 127 and 128:
appropriate performance information
Page 129 and 130:
examiners and the Charities‟ Boar
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which was set up in 2003. Charity a
Page 133 and 134:
Western Australia, all financial st
Page 135 and 136:
The fourth level of independent exa
Page 137 and 138:
What are the major areas of concern
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subset of good accountability pract
Page 141 and 142:
Programme refers to a meeting of ob
Page 143 and 144:
ecording property, plant and equipm
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Figure 6-2 Dimensions of Financial
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Because the [charity‟s] finances
Page 149 and 150:
„selling a story‟ makes them fo
Page 151 and 152:
that you can use it [the stove] for
Page 153 and 154:
the organisation pay to have those
Page 155 and 156:
contributors twice - first to fund
Page 157 and 158:
There is a need to record restricte
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charity will have control of a seco
Page 161 and 162:
of accountants involved in Charitie
Page 163 and 164:
their decision making. One auditor
Page 165 and 166:
Whilst the sample in this thesis is
Page 167 and 168:
Another problem my study found was
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framework funders would not be able
Page 171 and 172:
The lack of professionalism must be
Page 173 and 174:
New Zealand‟s charitable purpose
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We have since February of last year
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analysis was done of the first comp
Page 179 and 180:
Also the idea of members „taking
Page 181 and 182:
The transparency of their organisat
Page 183 and 184:
7.3 Monitoring As discussed in Chap
Page 185 and 186:
Zealand] Statistics Department poin
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There was a sub-committee running [
Page 189 and 190:
useful for smaller organisation and
Page 191 and 192:
change and they‟re doing a good j
Page 193 and 194:
problem that you‟ve [pause] we‟
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legislation and monitoring. Of part
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CHAPTER 8: PERFORMANCE ACCOUNTABILI
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In New Zealand both the Controller
Page 201 and 202:
what proportion of their charitable
Page 203 and 204:
None of the above reasons includes
Page 205 and 206:
Charities Commission publication
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achieve an appropriate level of per
Page 209 and 210:
more effectively in order to increa
Page 211 and 212:
eneficiaries‟ needs are met is an
Page 213 and 214:
As well as setting aside reserves,
Page 215 and 216:
The important aspect of the propose
Page 217 and 218:
Mostly they [the funders] are worki
Page 219 and 220:
eyond financial health to include
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8.4.4 Prescribed performance report
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impact they have on their beneficia
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statements, but also other mechanis
Page 227 and 228:
compare different charitable organi
Page 229 and 230:
shock when their accounts are eithe
Page 231 and 232:
9.4 Academic Contribution This rese
Page 233 and 234:
Outcomes (Effectiveness) Figure 9-1
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Charities Register, of which thirty
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success in their activities. For as
Page 239 and 240:
Ahrens, T., & Chapman, C. S. (2006)
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Australian Accounting Standards Boa
Page 243 and 244:
Bradbury, M. E., & Baskerville, R.
Page 245 and 246:
Charities Commission. (2009f). A sn
Page 247 and 248:
commission.gov.uk/Our_regulatory_ac
Page 249 and 250:
Cordery, C. J., & Baskerville, R. (
Page 251 and 252:
Eisenberg, P. (Ed.). (2005). Challe
Page 253 and 254:
Fremont-Smith, M. R. (2004). Pillag
Page 255 and 256:
Hui, D. (2006). Financial Reporting
Page 257 and 258:
http://www.ifac.org/Members/DownLoa
Page 259 and 260:
Maxwell, J. A. (1992). Understandin
Page 261 and 262:
http://www.nzica.com/AM/Template.cf
Page 263 and 264:
O'Sullivan, N., & O'Dwyer, B. (2009
Page 265 and 266:
Robson, C. (1993). Real World Resea
Page 267 and 268:
Television New Zealand (Writer) (27
Page 269 and 270:
Appendix One - Statement of Financi
Page 271 and 272:
Appendix Three - Semi-structured in
Page 273 and 274:
Appendix Five - Participant informa
Page 275 and 276:
Appendix Six - Transcriber’s Conf
Page 277:
Heading 1 Heading 2 Heading 3 Prope
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