An exploratory study of the effect of country-by-country reporting ambiguities on Johannesburg Stock Exchange-listed companies
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | An exploratory study of the effect of country-by-country reporting ambiguities on Johannesburg Stock Exchange-listed companies | |
| Creator | Thiart, Cara Nel, George F. | |
| Description | Background: South Africa issued regulations implementing country-by-country (CbC) reporting standards for multinational enterprises (MNEs) on 23 December 2016. Country-by-country reporting will be applicable to all MNEs with a group revenue in excess of R10 billion. Aim: The aim of the study was twofold: to identify ambiguities that might influence the filing obligation and subsequent scope of CbC reporting in South Africa and to quantitatively measure the potential impact of any identified ambiguities. Setting: This study used data from Johannesburg Stock Exchange-listed companies. Methods: The study commences with a review of the relevant regulations and other applicable literature and continues with a quantitative analysis exploring alternative interpretations deduced from this review. Results: The review identified conflicting interpretations of how companies can be categorised as an MNE Group or not, as well as in measuring the revenue threshold. An analysis of the group structures and annual reports of a selected sample of 78 companies showed that the scope of CbC reporting will depend on the definitions applied to an MNE Group and revenue. Conclusion: Further guidance is needed to determine whether non-controlling entities must be considered as Constituent Entities, as well as how to measure revenue (i.e. whether only the International Financial Reporting Standards [IFRS] 15 revenue line item should be used or whether other income should also be included). | |
| Publisher | AOSIS Publishing | |
| Date | 2018-06-25 | |
| Identifier | 10.4102/sajems.v21i1.2129 | |
| Source | South African Journal of Economic and Management Sciences; Vol 21, No 1 (2018); 8 pages 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/2129/1356
https://sajems.org/index.php/sajems/article/view/2129/1355
https://sajems.org/index.php/sajems/article/view/2129/1357
https://sajems.org/index.php/sajems/article/view/2129/1348
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