Repository logo
 

Planned Manufactured Capital Investment Disclosures in Annual and Integrated Reports: Evidence From New Zealand and Australian Organisations

Files

Dissertation(565.74 KB)

Date

2019

Authors

Supervisor

Farooque, Muhammad
Northcott, Deryl

Item type

Dissertation

Degree name

Master of Business

Journal Title

Journal ISSN

Volume Title

Publisher

Auckland University of Technology

Abstract

This research examines organisations planned manufactured capital investment (PMCI) disclosure practices. This disclosure constitutes primarily forward-looking information of both a qualitative and quantitative nature. Traditionally, organisations have provided this information in the management discussion and analysis section of annual reports. The integrated report, which has grown in popularity in recent years, also provides this information. The International Integrated Reporting Council Framework on integrated reporting suggests that organisations disclose both historic/backward and forward-looking information on six capitals including manufactured capital. However, there is a lack of research examining the content of PMCI disclosures, the different disclosure practices in annual and integrated reports, and changes PMCI disclosures over time. The study uses content analysis to analyse PMCI disclosures presented in annual and integrated reports. The data comprises 73 integrated and 108 annual reports of selected New Zealand and Australian organisations. These reports were published from 2014 to 2018. This examination aims to understand and compare the features of PMCI disclosures made in annual reports against those in integrated reports. Ninety-three PMCI disclosures were identified within 25 integrated reports and 41 annual reports over the five-year reporting period examined in this study. The disclosure patterns varied between the sample organisations. Most of these disclosures were made by New Zealand organisations rather than Australian organisations. The PMCI disclosures were found in various sections of the studied reports with the section outlining organisational performance and reviews most frequently used. There were five types of information involved in the PMCI disclosures: the type of investment, the projected cost, the projected timeframe, the expected investment benefits, and the decision-making process related to the PMCI. However, not every PMCI disclosure contained all these types of information. Commonly, the studied organisations outlined the type of investment in their PMCI disclosures with information about the projected timeframe of PMCI being the second most disclosed category of information. The decision-making process of a project related to PMCI projects was the least common disclosure. Although the nature of annual and integrated reports is different, the features of PMCI disclosures made in these reports were similar. Moreover, there was no difference between the disclosure practices of New Zealand and Australian organisations apart from the number of PMCI disclosures over the five-year period. The findings of this study contribute by extending the understanding of organisations’ reporting practices associated with PMCI. In addition, the findings reveal which information relating to PMCI is being delivered by organisations through their integrated and annual reports. This may contribute to reconciling the interests of management and stakeholders regarding PMCI disclosure.

Description

Keywords

Integrated report, Annual report, Planned manufactured capital investment, Disclosure

Source

DOI

Publisher's version

Rights statement

Permanent link

https://hdl.handle.net/10292/13020

Collections

Masters Dissertations