Events at the School of Accounting and Commercial Law
Listed below are forthcoming events either hosted by the School of Accounting and Commercial Law; or the Centre for Accounting, Governance and Taxation Research; or the Chair in Public Finance.
Challenges that Lay Ahead of the IASB - Professor Stephen A. Zeff (Rice University)
Date: 30 September 2016
Time: 11.00 am
Venue: RWW 129
“Company valuation - a hands-on update on developments in cost of capital and valuation theory” - CAGTR and INFINZ Seminar
Date: 13 October 2016
Time: 5.30 pm
Venue: Victoria University of Wellington, Government Buildings, Lecture Theatre GB LT 1, 15 Lambton Quay, Wellington
The main purpose of equity valuation is to estimate a value for a firm or security. A key assumption of any fundamental value technique is that the value of a security or a share is driven by the fundamentals of the firm’s underlying business at the end of the day. Capturing the essence of these fundamentals is key to firm valuation. There are three primary equity valuation models: discounted cash flow (DCF) based models, comparables-based approaches, and accounting-based approaches. Although theoretically superior, the DCF approach may be onerous in practice. This approach is very sensitive to assumptions about the development of cash flows over time. In this seminar, I will present the two alternatives: comparables-based valuation and earnings based valuation. I will use examples of companies from the region to show that both alternative approaches offer equivalent valuations, but are easier to implement and less sensitive to assumptions about the future cash flows.
Associate Professor Martien Lubberink completed his PhD in Economics at Groningen University. In the summer of 2008, he joined De Nederlandsche Bank, the central bank of the Netherlands. Here he contributed to the development of new regulatory capital standards and regulatory capital disclosure standards for banks worldwide and for banks in Europe (Basel III and CRD IV respectively). He also acquired comprehensive expertise on capital instrument issuances that qualify for Tier 1 and Tier 2 regulatory bank capital. Dr. Lubberink regularly contributes to the Capital Issues blog, a blog dedicated to advancing knowledge about the complex world of regulatory bank capital: www.capitalissues.co. He also regularly writes for interest.co.nz, and occasionally contributes to panel discussions on bank capital and advises ministries, banks, and banks supervisors on bank capital regulation. He has offered inputs to newspapers, such as Bloomberg, The Economist, Euromoney, the Financial Times, Risk Magazine, and SNL Financial. Dr. Lubberink's teaching interests relate to banking, financial accounting, financial statement analysis, and management accounting. His research interests focus on accounting and equity capital.
Corporate Sustainability Practices and Regulation - Gill North (Professorial Research Fellow, Deakin University)
Date: 28 October 2016
Time: 11.00 am
Gill has provided the following introduction from her paper which is in draft form only and she has asked that it should not be copied or forwarded on:
Large corporations do not exist or operate in a vacuum, and must constantly adapt to the environments in which they operate in order to survive and prosper. They must also satisfy, where possible, the many demands and expectations of the groups they influence and with whom they interact. Many listed companies around the globe are voluntarily responding to mounting calls from investor and stakeholder groups for consideration and reporting of non-financial factors and outcomes. This is evidenced by reporting frameworks that include, among others, management discussion and analysis, disclosure of corporate social responsibility (CSR), sustainability and citizenship information, and integrated reporting. As these various reporting developments build momentum, policy makers are reviewing the legal frameworks and are establishing new rules or strengthening existing regulation around the governance and disclosure of information on employee, supplier, diversity, human rights, community impact, and sustainability matters. All of the regulatory options in use or mooted in the corporate sustainability space rely on disclosure as a means to drive awareness of sustainability matters and to ultimately move the culture and activities of corporations towards more sustainable business practices.-------------------------------------------------
 The OECD indicates that ‘Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined’: OECD (2015).
 The purposes and content of corporate social responsibility reports, corporate citizenship reports, corporate sustainability practices and reports, and integrated reports overlap and include similar content regardless of the report title. For the purposes of this chapter, these frameworks are treated as interchangeable and referred to as sustainability reporting in most of the discussion.
 See for example KPMG International (2013) Survey of Corporate Responsibility Reporting pp9–10. The KPMG survey reviewed corporate responsibility (CR) reporting across the 100 largest companies in 41 countries. This report notes that almost all of the world’s largest 250 companies report on CR with 78 percent of these companies referencing the Global Reporting Initiative guidelines. It suggests that the debate has well and truly moved on from whether or not companies should report on CR; the important issue now is the quality of such reporting and the best means to reach relevant audiences.