Advanced

Disclosure of provisions in annual reports: A study of the oil and gas companies’ provision disclosures

Elf, Karl-Oskar LU and Salemyr, Filip LU (2017) BUSN79 20171
Department of Business Administration
Abstract
Purpose: The purpose of this thesis is to research the nature of accounting for provisions, by examining how disclosed information of provisions in annual reports corresponds with the concepts of transparency, comparability and readability of financial information. With the empirical findings analysed, we then aim to hold a further discussion on how the provision disclosures in the annual reports meet IFRS’ four qualitative characteristics of useful financial information.

Methodology: The thesis has used a content analysis for gathering data. In line with the methodology of content analysis, the thesis therefore developed a coding schedule in the form of a template. Moreover, the disclosures were coded based on the manual containing... (More)
Purpose: The purpose of this thesis is to research the nature of accounting for provisions, by examining how disclosed information of provisions in annual reports corresponds with the concepts of transparency, comparability and readability of financial information. With the empirical findings analysed, we then aim to hold a further discussion on how the provision disclosures in the annual reports meet IFRS’ four qualitative characteristics of useful financial information.

Methodology: The thesis has used a content analysis for gathering data. In line with the methodology of content analysis, the thesis therefore developed a coding schedule in the form of a template. Moreover, the disclosures were coded based on the manual containing coding definitions.

Theoretical perspective: Theoretical concepts with which the empirical findings has been analysed has been; transparency, comparability and readability, relevance and reliability.

Empirical foundation: The thesis’ empirical data was gathered by extracting data from oil and gas companies’ annual reports. The empirical data was generated using the content analysis coding template. The empirical data studied were annual reports and their provision notes for the companies’ 2009, 2012, and 2015 fiscal year.

Conclusion: Based on our empirical findings, our study could to some extent indicate that the transparency, comparability and readability of provision disclosures in annual reports could be perceived as to some extent challenged. Furthermore, in general it can be concluded that the four qualitative characteristics of useful financial information reported under IFRS are important to reflect upon and evaluate when it comes to the provision disclosures in oil and gas companies’ annual reports. (Less)
Please use this url to cite or link to this publication:
author
Elf, Karl-Oskar LU and Salemyr, Filip LU
supervisor
organization
course
BUSN79 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
Annual reports, Disclosures, IAS 37, Oil and gas industry, Provisions
language
English
id
8918476
date added to LUP
2017-07-04 14:49:09
date last changed
2017-07-04 14:49:09
@misc{8918476,
  abstract     = {Purpose: The purpose of this thesis is to research the nature of accounting for provisions, by examining how disclosed information of provisions in annual reports corresponds with the concepts of transparency, comparability and readability of financial information. With the empirical findings analysed, we then aim to hold a further discussion on how the provision disclosures in the annual reports meet IFRS’ four qualitative characteristics of useful financial information.

Methodology: The thesis has used a content analysis for gathering data. In line with the methodology of content analysis, the thesis therefore developed a coding schedule in the form of a template. Moreover, the disclosures were coded based on the manual containing coding definitions.

Theoretical perspective: Theoretical concepts with which the empirical findings has been analysed has been; transparency, comparability and readability, relevance and reliability.

Empirical foundation: The thesis’ empirical data was gathered by extracting data from oil and gas companies’ annual reports. The empirical data was generated using the content analysis coding template. The empirical data studied were annual reports and their provision notes for the companies’ 2009, 2012, and 2015 fiscal year.

Conclusion: Based on our empirical findings, our study could to some extent indicate that the transparency, comparability and readability of provision disclosures in annual reports could be perceived as to some extent challenged. Furthermore, in general it can be concluded that the four qualitative characteristics of useful financial information reported under IFRS are important to reflect upon and evaluate when it comes to the provision disclosures in oil and gas companies’ annual reports.},
  author       = {Elf, Karl-Oskar and Salemyr, Filip},
  keyword      = {Annual reports,Disclosures,IAS 37,Oil and gas industry,Provisions},
  language     = {eng},
  note         = {Student Paper},
  title        = {Disclosure of provisions in annual reports: A study of the oil and gas companies’ provision disclosures},
  year         = {2017},
}