Understandability and Transparency of the Financial Statements of ...

There were also thirty-six follow-up interviews held, where aspects of the interview
were clarified or additional information given by the interviewee that added depth to the
data collected. Next the different aspects that need to be considered with regards to
interviews will be covered, i.e. preplanning, conducting and recording interviews.
4.5.1 Preplanning the Interview
The first steps in preparing for an interview were to see who would be able to give the
data that was required, then there was a need to determine how to select, or rather
sample, these prospective interviewees, which is discussed next (Ghauri & Gronhaug,
2005).
INTERVIEW PARTICIPANTS
For this research participants were: (1) people involved in the preparation or auditing of
the financial accounts of charities; (2) managers of charities; (3) board members of
charities; and (4) experts in charities. Experts included heads of supporting
organisations within the not-for-profit sector in New Zealand. In order that as wide a
view as possible was taken, interviews took place from September 2008 to February
2010. The research consists of seventy-five interviews comprising: twenty-two semi-
structured interviews; seventeen informal conversations; and thirty-six follow-ups
(Table 4-3).
Type of Interview Initial interview Follow-up Totals
Semi-structured interviews 22 23 45
Informal
interviews
conversation 17 13 30
Total Interviews 39 36 75
Table 4-3 Number of interviews
Persons involved in small charities were excluded unless they were linked to one of the
umbrella bodies within the New Zealand charitable sector and thus considered an expert
due to their wider experience and knowledge. There were two reasons for excluding
small charities from this research. First, small charities are likely to have less complex
operations than larger ones which means that complex International Financial Reporting
Standard accounting rules are not necessary (Accounting Standards Committee, 1984),
and their rudimentary accounts would not allow the depth of discussion needed for this
research. Second, small charities usually have fewer resources and preparing detailed
accounts would be an unfair imposition on treasurers and auditors, most of whom are
honorary (Accounting Standards Committee, 1984).
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