TY - JOUR AB - Subject area Financial reporting.Study level/applicability Postgraduate (honours and masters in financial reporting).Case overview Transnet is the utility company responsible for, inter alia, the operation, construction and management of South Africa's fuel pipeline infrastructure. The company is wholly owned by the South African Government and prepares its financial statements in compliance with International Financial Reporting Standards (IFRS). One of Transnet's capital projects involves the construction of an upgraded multi-fuel pipeline. The expected costs of construction ballooned from ZAR12.6 billion (approximately USD120 million) to ZAR24 billion (approximately USD240 million) over a five-year period. This has raised questions about the prudential management of the company's capital projects and the basis on which the government subsidises Transnet's capital costs. The significant increase in project costs also begs the question: how should the cost of the self-constructed pipeline be accounted for in Transnet's annual financial statements?Expected learning outcomes Describe and explain the qualitative characteristics of useful information in terms of the Conceptual Framework (2010) and summarise the framework's key principles. Evaluate these principles, drawing connections between them and the relevant academic theory (as per the prescribed readings), with specific reference to the accounting for self-constructed plant and equipment.Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.Subject code CSS 1: Accounting and Finance VL - 4 IS - 7 SN - 2045-0621 DO - 10.1108/EEMCS-01-2014-0009 UR - https://doi.org/10.1108/EEMCS-01-2014-0009 AU - Maroun Warren AU - Garnett Robert PY - 2014 Y1 - 2014/01/01 TI - The Transnet pipeline case study T2 - Emerald Emerging Markets Case Studies PB - Emerald Group Publishing Limited SP - 1 EP - 11 Y2 - 2024/09/21 ER -