Exercising professional judgement in an era of sector neutrality : a study of choices made by New Zealand reporting entities

Tooley, Stuart & Hooks, Jillian (2006) Exercising professional judgement in an era of sector neutrality : a study of choices made by New Zealand reporting entities. In 7th Annual Conference AsianAcademic Accounting Association, 17-19 September 2006, Sydney, Australia.


Since 1992, New Zealand has engaged in a sector-neutral approach to accounting standard setting – where a transaction is accounted for based on its underlying economic nature rather than on the type of entity undertaking it. Underpinned by the premise that GAAP can be generalised across the public/private divide, we examine whether systematic differences exist between accounting policies adopted by reporting entities with different ownership and/or operating objectives. We find evidence of sector preference in the choice of useful life for comparable depreciable assets, and differences in policies for the amortisation of goodwill. We also find evidence of sector convergence in the choice of methods for accounting for valuation of non-current assets, deferred taxation and inventory. It is observed that the two accounting policies indicating sector preference have a more direct impact on the Statement of Financial Performance than the other policies examined.

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ID Code: 14191
Item Type: Conference Paper
Refereed: No
Additional Information: For more information, please refer to the conference's website (see hypertext link) or contact the author.
Additional URLs:
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2006 (please consult author)
Deposited On: 06 Aug 2008 00:00
Last Modified: 10 Aug 2011 14:44

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