The Application of the Reporting Entity Concept by Australian Charities

Phil Saj and Chee Cheong

Australian Accounting Review, 2020, vol. 30, issue 4, 283-299

Abstract: We provide evidence on the application of the reporting entity concept by Australian charities by correlating the type of financial report with the indicators of reporting entity status posited under Statement of Accounting Concepts 1 (SAC1). In addition, we present evidence on the quality of charity financial reporting by investigating compliance with certain requirements of Australian accounting and auditing standards. We examine a random sample of 574 charities, comprising 10% of large charities that lodged financial reports with the Australian Charities and Not‐for‐Profits Commission in 2014. We find that while some indicators of reporting status are statistically significant in explaining reporting choice, their economic significance is weak. Consequently, we conclude that the application of the reporting entity concept is inconsistent, and raise questions about the effectiveness of SAC1 and the quality of charity financial reporting.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/auar.12306

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausact:v:30:y:2020:i:4:p:283-299

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1035-6908

Access Statistics for this article

Australian Accounting Review is currently edited by Linda M. English

More articles in Australian Accounting Review from CPA Australia
Bibliographic data for series maintained by Wiley Content Delivery ().