Keeping it Private: Financial Reporting by Large Proprietary Companies in Australia

27 Pages Posted: 12 Mar 2019

See all articles by Brad Potter

Brad Potter

University of Melbourne - Faculty of Business and Economics

Matt Pinnuck

University of Melbourne - Department of Accounting and Business Information Systems

George Tanewski

Deakin University - School of Accounting Economics and Finance

Sue Wright

University of Newcastle; UTS Business School; Financial Research Network (FIRN)

Date Written: March 2019

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.

Keywords: Differential reporting, Private companies, Reduced disclosure, AASB 1053

Suggested Citation

Potter, Bradley Nathan and Pinnuck, Matthew and Tanewski, George and Wright, Sue, Keeping it Private: Financial Reporting by Large Proprietary Companies in Australia (March 2019). Accounting & Finance, Vol. 59, Issue 1, pp. 87-113, 2019, Available at SSRN: https://ssrn.com/abstract=3349318 or http://dx.doi.org/10.1111/acfi.12436

Bradley Nathan Potter (Contact Author)

University of Melbourne - Faculty of Business and Economics ( email )

Victoria, 3010
Australia

Matthew Pinnuck

University of Melbourne - Department of Accounting and Business Information Systems ( email )

Victoria
Melbourne, Victoria 3010 3010
Australia

George Tanewski

Deakin University - School of Accounting Economics and Finance ( email )

Burwood, Victoria 3215
Australia

Sue Wright

University of Newcastle ( email )

University Drive
Callaghan, NSW 2308
Australia

UTS Business School ( email )

Sydney
Australia

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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