Description
Presentation delivered at the BAFA SEAG, abstract as follows:According to the IASB, neutrality is part of the fundamental characteristics of high quality financial reporting. Per the IASB Conceptual Framework, “a neutral depiction is without bias in the selection or presentation of financial information” (IASB Conceptual Framework [QC10]). However, with limited guidance in IFRS on effective communication of subjective aspects of accounting, is it realistic to expect a neutral depiction of negative events? How, for example, would an auditor successfully argue that a narrative disclosure note containing a description of an inherently uncertain event is anything other than neutral? Using the example of reporting of provisions in the BP annual reports in the years following the Deepwater Horizon incident, this emerging paper utilises a spatial model and anchoring theory to consider the likelihood of defensive, rather than neutral, presentation of subjective balances. Drawing on previous findings in impression management literature, a content analysis of the BP annual report from 2014 has been conducted to identify hallmarks of defensive presentation. This emerging paper will present the initial findings of the research.
| Period | 11 Dec 2017 |
|---|---|
| Event title | BAFA South East Area Group Conference 2017: null |
| Event type | Conference |
| Location | Egham, United Kingdom |