An Analysis Of Compliance Of Selected Namibian Companies With The International Financial Reporting Standards On Revenue

Abstract

This thesis explores whether or not revenue recognition, measurement and disclosure practices of companies in Namibia comply with International Accounting Standards on Revenue (IAS 18 Revenue). The research problem for this study is derived from the fact that when financial statement users are analysing the financial health of a firm reliance on the accuracy and reliability of financial statements issued by a firm. It is in compliance with IAS 18, which enhances the reliability of financial statements. This study investigated the recognition, measurement and disclosure practices by selected private and public limited companies in Namibia. The thesis is based on a sample of fifty companies, using a qualitative approach. Primary data for this study were collected from a sample of fifty companies through a questionnaire. Secondary data were collected through content analysis of published financial statements. Survey data was analysed by grouping and coding answers and comparing them with the standards. Tables, frequencies, charts, graphs and narratives were used to present the findings. Thirty-six questionnaires were returned, achieving a response rate of seventy two (72) percent. The study found that seventy (70) percent of the selected companies are not accurately recognizing, measuring or presenting revenue in accordance with IAS 18 Revenue. The study concludes that both private and public companies in Namibia are not in full compliance with IAS 18 Revenue. Based on the findings of this study, it is recommended that further quantitative studies are undertaken using larger samples and that accountancy professional bodies should improve in the area of Continuing Professional Development (CPD) requirements.