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Judgements of significant influence by financial controllers
Author(s) -
Laswad Fawzi,
Roush Melvin
Publication year - 1996
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1996.tb00305.x
Subject(s) - judgement , comparability , consistency (knowledge bases) , subject (documents) , psychology , actuarial science , finance , computer science , economics , mathematics , political science , artificial intelligence , combinatorics , library science , law
This study examines the judgement processes of New Zealand financial controllers when determining whether an investor is capable of exercising significant influence over an investee. The results of this study provide evidence that the “20% interest” threshold is the most important factor in these judgement processes. Further, the results indicate a high degree of inter‐subject consensus and intra‐subject consistency and self‐insight which could be attributed to the high weight given to the “20% interest” threshold. Although the “20% interest” threshold is often criticised for being arbitrary, the results of this study suggest that the use of this cut‐off as a judgement cue may help achieve greater consistency and comparability in financial reporting.