Focus on a research report : an accounting and auditing perspective on interim financial reporting in the Republic of South Africa - Fourth edition

Abstract

Interim financial reports form part of the total process of financial reporting and are prepared for and presented to the many users of financial reports for the purposes of making economic decisions. This is the fourth edition of the research report and forms part of ongoing research initiatives by the School of Accountancy. We are of the opinion that the examination of the disclosure issues regarding interim financial information and the issues surrounding independent auditor involvement with such information as presented in this report, will contribute to a better understanding of current practice in South Africa. This in turn could facilitate improved disclosure and reporting, as well as the continuous monitoring of the appropriateness and relevance of the requirements, standards and practices in respect of interim financial reporting. The research report investigates, firstly, the extent to which companies listed on the Johannesburg Stock Exchange in South Africa adhere to the relevant statutory and regulatory disclosure requirements regarding interim financial reports, secondly the degree to which these companies already adhere to the requirements and recommendations of the international and local accounting standards on interim financial reporting, and thirdly some of the key issues regarding independent auditor involvement with interim financial information. The basis of the research report is a survey of the published interim reports (with interim dates falling within the 1999 calendar year) of 50 top companies listed on the Johannesburg Stock Exchange.