A 6-step approach to explaining extraordinary resources

To carry out day-to-day business functions, companies use many different resources, but how many of these resources help the company to distinguish itself from other similar companies/competitors? It is argued that in order to create organisational value, a company must have at least one ‘extraordinary resource’. So what is an extraordinary resource? Extraordinary resources can […]

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The [In]Efficient Market Hypothesis: Bursting the Bubble

There are three different types of market efficiency. Operational efficiency means that the market should operate at a minimum cost, speedily and readily. Allocational efficiency means that the market should allocate society’s limited resources to companies that will make the best use of them. Finally, informational efficiency means that the market should incorporate all available […]

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Creative accounting and the IASB conceptual framework – a futile relationship?

Creative accounting, a term first introduced by Ian Griffiths (1986), is commonly defined in the UK as “a form of accounting which, while complying with all regulations, nevertheless gives a biased impression (generally favourable) of the company’s performance” (CIMA, 2000 cited by Jones, 2011). However, this definition is very narrow in comparison to others such […]

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Integrated reporting – the next evolutionary step in corporate reporting?

Integrated reporting is a relatively new approach to corporate reporting, which is rapidly gaining international recognition through global giants such as Unilever, and has been fully mandated in South Africa. It is founded on ‘integrated thinking’, which helps to demonstrate interconnectivity of strategy and objectives, performance, risk, and importantly helps to identify sources of value […]

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