Additions to the present USB database : income statements (1990-2000) : an exploratory study

Gasnolar, Jasmina (2003-12)

Thesis (MBA)--Stellenbosch University, 2003.

Thesis

ENGLISH ABSTRACT: The study involves an examination of the current situation of the responsibility of companies listed on the Johannesburg Stock Exchange on the disclosure requirements of the accounting standards. In 1995, Statement AC 108 'Inventories' was introduced and it deals with the definition and disclosure of cost of sales. In 1997, Statement AC 306 was introduced and deals with the scope, calculation and disclosure of headline earnings per share (HEPS). The research shows that since the disclosing requirements of Statements 108 and 306 (cost of sales and HEPS) were published, there has been a significant effect on the nature of disclosure of these items by listed South African companies. In addition, income statement items (not yet part of the USB database) were identified and will be loaded onto the USB database of income statements of industrial companies listed on the JSE. These items are: ~ Cost of sales, ~ Gross profit, ~ Gross profit percentage, and ~ HEPS. A large sample of four hundred companies' financial statements over an eleven year period (1990 - 2000) was reviewed, and the data regarding sales, cost of sales, EPS, HEPS, exceptional items, abnormal items and extraordinary items were recorded on a spreadsheet model. Regarding cost of sales, the gross profit and gross profit percentage were calculated, and the arithmetic and weighted means were calculated. The data was analysed against the disclosure requirements and it was found that thirty percent of the companies on the USB's database reports cost of sales as an item on the income statement (without disclosing the item as specified above in "notes to the income statement)". Seventy percent reports cost of sales as a note underoperating profit in the income statement. First in, first out (FIFO) is the method of inventory valuation that is clearly the dominant method used by listed companies in South Africa. An analysis of the HEPS of the listed companies revealed a similar trend and the majority of companies disclosing HEPS do so as per the requirements set out in Statement AC 306.

AFRIKAANSE OPSOMMING: Hierdie studie behels 'n ondersoek na die huidige situasie van maatskappye wat genoteer is op die Johanneburg Effektebeurs se verantwoordelikheid ten opsigte van bekendmaking van rekeningkundige standaarde. Gedurende 1995 is Standpunt RE 108 gepubliseer en dit handel oor die defineëring en openbaarmaking van koste van verkope. Gedurende 1997, is Standpunt RE 306 bekendgestel en handel oor die omvang, berekening en bekendmaking van wesensverdienste per aandeel. Die navorsing toon dat sedert Standpunte 108 en 306 (koste van verkope en wesensverdienste per aandeel) gepubliseer is, daar 'n aansienlike effek op die aard van bekendmaking van hierdie items deur genoteerde Suid Afrikaanse maatskappye is. Verder is inkomstestaat items (wat nog nie deel van die USB databasis is nie) geidentifiseer en sal op die USB databasis van inkomstestate van industriële maatskappye genoteer op JEB geplaas word. Hierdie items is: ~ Koste van verkope, ~ Bruto wins, ~ Bruto wins persentasie, en ~ Wesensverdienste per aandeel. 'n Groot steekproef van 400 maatskappye se finansiële state oor 'n 11 jaar tydperk (1990 - 2000) is nagegaan, en die inligting aangaande verkope, koste van verkope, verdienste per aandeel, wesensverdienste per aandeel, abnormale en uitsonderlike items is opgeneem in 'n sigblad model. Wat die koste van verkope betref, is die bruto wins en bruto wins persentasie bereken, en die gewone sowel as die geweegde gemiddeldes is bereken. Die data is geanaliseer teen die bekendmaking vereistes en daar is gevind dat ongeveer dertig persent van die maatskappye op die USB se databasis rapporteer koste van verkope as 'n item op die inkomstestaat. Sewentig persent rapporteer koste van verkope as 'n nota onder bedryfswins in die inkomstestaat. Eerste in, eerste uit (EIEU) is duidelik die vooraadwaardasie wat die meeste gebruik word deur genoteerde maatskappye in Suid Afrika. 'n Analise van die wesensverdienste per aandeel van die genoteerde maatskappye dui 'n soortgelyke tendens en die meerderheid van maatskappye wat wesensverdienste per aandeel verklaar, doen so volgens die vereistes soos neergelê in Standpunt RE 306.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49743
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