School of Accounting and Commercial Law


Listed below are forthcoming events either hosted by the School of Accounting and Commercial Law (SACL) or the Centre for Accounting, Governance and Taxation Research (CAGTR) or the Chair in Public Finance.

Moving towards IPSAS: Balance sheet developments and its impact on decision making? - Sandro Fuchs (Zurich University of Applied Sciences)

Date: 14 August 2015

Time: 11.00 am

Venue: RWW129

Positive and negative CEO personality traits and firm communication: Overconfidence, Narcissism or Self-Esteem? - Assistant Professor Encarna Guillamon-Saorin (University Carlos III de Madrid, Spain)

Date: 11 September 2015

Time: 2.30 pm

Venue: RWW129

We propose a novel approach based on graphology analysis to identify self-esteem and narcissism and investigate how these traits influence firm communication. We view self-esteem as a positive trait, reflecting a strong self-concept built on a true sense of self-confidence. Narcissism, however, is a negative trait, associated with a more fragile self-view reflected by demonstrations of grandiosity and arrogance. We hypothesise that these traits lead to differential communication styles. We predict CEOs with high self-esteem will provide informative disclosures. Conversely, narcissistic CEOs will bias disclosureto justify their performance, using communication as a mechanism of self-defence and preservation of their self-esteem. The results confirm these predictions. High self-esteem CEOs show lower attributional biases, disclose more information and use less positive tone. However, narcissistic CEOs are more likely to show attributional biases and link any firm underperformance to external causes, whilst attributing positive outcomes to their own merits.

Imagining Intelligible Accounting for the Future: A Critical Examination of (dis)placement in the Pacific Islands - Dr Stephanie Perkiss (Macquarie University)

Date: 18 September 2015

Time: 11.00 am

Venue: RWW129

Purpose: The purpose of this paper is to examine contemporary accountability relationships for challenging and future issues of displacement and to imagine broader ways of being accountable. Design/methodology/approach: The paper explores the meaning and understanding of place and displacement and, with sociology of worth, provides discussion for greater accountability. A SOW framework is anchored to the ‘local’ Pacific Island case/situation to give critical examination of forward-looking displacement.
Findings: There is need to challenge both current modes of economic and sustainability accounting and accountability to give better consideration to complex social phenomena. Intelligible accounts are examined as a way of providing greater moral accountability and drive to a just society. These accounts, tested in the Pacific Island SOW case study analyses produce a narrative of complex and conflicting states of worth and accountability relationships in relation to forward-looking issues of displacement. They also provide hope for accounting for future generations through critical accounting research.
Research implications/limitations: The findings of the Pacific Island case provide a normative guide to inform other complex cases that are bound by multiple values of place and ideals of worth Further, the new tool – intelligible accounts – in SOW provides an image and progress toward greater nuanced accountability for current and future vulnerable communities.
Practical and social implications: Baker (2014) indicates that disasters have the potential to break down accountability, and that the potential exists prior to the disaster, but is exacerbated following the event. Therefore, we analyse the future issue of environmental migration in the Pacific Islands as a product of current conditions as the antecedents of disaster. In doing so, the issue of intelligible accounts to inform actions that support a more holistic moral accountability are examined, and have the power to influence economic and public policy and give greater awareness to global/modern social and environmental challenges.
Originality/value: The paper contributes to SOW and critical case study research by introducing new methods of ‘being accountable’ and introducing the future crisis of migration due to sea level rise in the accounting literature.

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CAGTR Business Links with Professor Peter Easton

Date: 23 September 2015

Time: 5.30 pm

Venue: Government Buildings, Lecture Theatre 1, 15 Lambton Quay, Wellington

Cash is king but earnings are the key to meaningful valuation

The method of valuation that has been taught in business schools for decades is discounted cash flow.  We have all learned that one of the acceptable methods of valuation of assets for, say, goodwill impairment purposes, is that we forecast the expected future cash flows and sum their discounted present values.  A shortcoming of this method is that, often (perhaps more often than not) the forecasts of cash flows for the next few years (i.e., for the years for which reasonably meaningful and justifiable forecasts can be made) capture only a small portion of the value of the asset.  Thus we find ourselves relying on, difficult to justify, assumptions about cash flows beyond the forecast horizon.  I will show that, rather than relying on forecasts of cash flows, we can carry out our valuations based on forecasts of earnings.  Importantly, the forecasts of earnings for the next few years capture most of the value and, hence, we do not have to be so concerned about assumptions about what happens beyond the forecast horizon.  I will demonstrate this difference between cash-flow-based valuation and earnings-based valuation in estimating the current value of Procter and Gamble.

A copy of the flyer is available here.


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