A short summary of Sophia`s research:

If I ask you to open your wallet right now, you would probably be able to take out at least 5 customer loyalty cards, one of which will be a credit card linked to a rewards programme. For example, FNB ebucks, Absa Rewards or Standard Bank UCount. A new Accounting Standard was issued that provides minimum guidance on how to account for a credit card rewards programme (CCRP) transaction, creating uncertainty and inconsistent accounting practices amongst CCRPs. Given the popularity of CCRPs, it is important to ensure that these transactions are faithfully represented in annual financial statements (AFS) to provide quality and consistent information to users of AFS.

Clarity on the appropriate accounting treatment of CCRP transactions cannot be gained by only considering accounting theory and existing literature. It is evident that a comprehensive understanding of experiences of CCRP management, who make decisions on the accounting treatment as well as the opinions of experts in the field, are also vital in determining the most appropriate accounting treatment of CCRP transactions, because the new Revenue Standard leaves it open to the discretion of management. The aim of the research was to develop a conceptual model for the accounting treatment of CCRP transactions, by considering accounting theory, existing literature, the experiences of CCRP management who make accounting decisions relating to CCRPs and the opinions of experts. To provide practical guidelines in accounting for a CCRP transaction the conceptual model was embedded in a decision tree as a heuristic to provide for various possible accounting treatments. The CCRP decision tree model developed could eliminate uncertainty amongst CCRP management and increase the decision-usefulness of financial information.

Research for Impact is one of the core strategic themes in SU`s Vision 2020. How does your research relate to that?

The research not only makes a theoretical contribution (adding to the existing theoretical financial reporting body of knowledge) but also a practical contribution by providing preparers of annual financial statements, who seek to faithfully represent their CCRP transactions, with a best practice model on the recognition and measurement of such transactions.

In the ever-changing environment of academia, what are some of the obstacles early career researchers are faced with?   

I believe the biggest obstacle is to find the time to do research.

What would you regard as the most important aspects to consider to effectively support early career researchers?           

A mentor can contribute to developing an early career researcher.

What excites you about your work?   

Finding a practical solution to a problem. I believe I can actually help CCRP management in clearing up uncertainty in accounting for CCRP transactions.

When you're not in the lab, library or in the field conducting research, what do you do to unwind?

I spend time with my family. I have a 6-year-old boy and a 4-year-old girl.

How has the ECAD programme of SU contributed to your research career?     

I had various mentors that guided me through difficult sections within my thesis.

What advice, if any, would you look to impart to future early career academics?

I believe it is important to do research on topics you truly find interesting.

Connect with Sophia and her work!

Google Scholar: https://scholar.google.co.za/citations?user=eYS-GSwAAAAJ&hl=en