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Voluntary Disclosures as a Mechanism for Defining Entity Status in Australian Not‐for‐Profit Organisations
Author(s) -
Cummings Lorne,
Dyball Maria,
Chen Jessica Jin Hua
Publication year - 2010
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2010.00088.x
Subject(s) - clarity , not for profit , business , accounting , transparency (behavior) , profit (economics) , voluntary disclosure , turnover , public relations , economics , political science , microeconomics , management , law , biochemistry , chemistry
This study examines managerial efforts to portray an entity's not‐for‐profit (NFP) status based on voluntary disclosure practices. The annual report text of 61 NFPs are analysed in accordance with Salamon and Anheier's (1997) NFP definitional framework. Results indicate a predominant application of the structural‐operational definition. Furthermore, the ‘organised’ attribute of this definition prevails over the ‘non‐profit‐distributing’ criterion that has been advocated by various parties. Standard‐setting bodies may want to consider: (1) NFP management perspectives in any revised NFP definition; and (2) greater clarity in conceptual framework and standard‐setting arrangements to improve overall transparency in NFP reporting practices.