Having a look at this report, which was commissioned by CPA Australia on whether and if so, how financial statements are useful for equity investors in Australia.
Is a way for CPA Australia to commission a report, in an attempt to try to justify the poor financial reports provided to the members of CPA Australia?
Maybe they should have asked the members of CPA Australia, whether they believed the financial reports provided to the members of CPA were relevant, or useful or complied with accounting standards. Opps, Brett and other have already raised very serious concerns about the financial reports and the status of the accounting standards, which are out of date and generally confusing and in some examples to complex.
Can any one advise how much this research paper cost?
It does not appear to be a very effective use of CPA Australia resources. What do other members think?
The researchers did "A total of 17 interviews were conducted across investors (7), regulators (5) and practitioners (5)" They have used prior literature and consultation with experts in the practice of financial reporting and regulation."
It would appear that this report is of very little accounting use or use with regards to question of the importance financial statements. They have combined a very very small test sample and used external research to try and justify the funds which CPA Australia has spent. One may even question the test questions put the individuals interviewed. If you remove a lot of the glossy pictures and reference to the oversea research, then the quality of the actual information is very limited and provided no real new information or valuable input to the accounting industry.
What do others think?
Decision-usefulness in financial reports
https://www.cpaaustralia.com.au/profess ... ember-2018
A CPA Australia funded Australian study by academics from the University of Melbourne and Monash University. This study, and subsequent series of reports, make a valuable contribution to the ongoing global debate into the value and relevance of financial reports.
Research report no.1: Are financial reports still useful to investors? (PDF)
Research report no.2: Relevance of alternative performance measures and non-financial information for investor decision making in Australia (PDF)
Research report no.3: The effect of industry on the relevance of financial reports for investor decision making (PDF)
Research report no.4: The effect of company size, profitability and the introduction of IFRS on the relevance of financial reports for investor decision making (PDF)
Research report no.5: The decision-usefulness of financial reports and the future of (financial) reporting (PDF)
See also: Do financial statements still matter? – INTHEBLACK
|Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594|
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
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Issues at CPA Australia needing investigation and/or review.
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- 2018 Part 1are-financial-reports-still-relevant-to-investors.pdf
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- 2018 Part 2 relevance-alternative-performance-measures.pdf
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- 2018 Part 3 the-effect-of-industry.pdf
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- 2018 Part 4 effect-of-company-size.pdf
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- 2018 Part 5 decision-usefulness-financial-reports.pdf
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