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Keeping it private: financial reporting by large proprietary companies in Australia

Author

Listed:
  • Brad Potter
  • Matthew Pinnuck
  • George Tanewski
  • Sue Wright

Abstract

Since 2010, proprietary companies have had a choice of preparing three types of financial reports that vary in scope. We find that between 2010 and 2015, most proprietary companies in our random sample chose the lowest scope option, with very low quality financial reports. Few adopted the new option provided by AASB 1053 Application of Tiers of Australian Accounting Standards. The characteristics of the firms that adopted each type of report are consistent with the regulator's intention. Our findings should provide a better understanding of how accounting standards impact practice, and should assist regulators to reform private company financial reporting.

Suggested Citation

  • Brad Potter & Matthew Pinnuck & George Tanewski & Sue Wright, 2019. "Keeping it private: financial reporting by large proprietary companies in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(1), pages 87-113, March.
    • Handle: RePEc:bla:acctfi:v:59:y:2019:i:1:p:87-113
    DOI: 10.1111/acfi.12436
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    References listed on IDEAS

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    Cited by:

    1. Yitang (Jenny) Yang & Roger Simnett, 2020. "Financial Reporting by Charities: Why Do Some Choose to Report Under a More Extensive Reporting Framework?," Abacus, Accounting Foundation, University of Sydney, vol. 56(3), pages 320-347, September.
    2. Wen Hua Sharpe & Peter Carey & Hong Feng Zhang, 2023. "Being private, Big 4 auditors, and debt raising," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2295-2345, June.
    3. Elizabeth Carson & Yi (Dale) Fu & Ulrike Thürheimer & Yang Xu, 2023. "The audit market for listed Australian companies from 2012 to 2018: A state of play," Australian Journal of Management, Australian School of Business, vol. 48(3), pages 524-549, August.

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