Choices of financial reporting regimes and techniques and underlying decision-making processes

Julia Smith, Gavin Reid, Yu-Lin HSU

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Abstract

This paper examines how financial reporting modes are determined within a company, from the perspective of perceived costs and benefits. The modes investigated include financial reporting regimes (e.g. IFRS, UK GAAP) and the financial reporting techniques which support them (e.g. valuing intangibles and investments, treatment of development costs). A stated preference approach is adopted and applied to a fieldwork analysis of the functioning of a large port authority, which was a member of a group and prepared both consolidated and subsidiary accounts. The analysis is largely qualitative, exploring in-depth such matters as key factors in making choices, the decision-making processes behind choices, and the staging of decisions, but underpinned by a quantitative basis, using a metric for determining net benefits of financial reporting regimes and techniques. Our analysis aims to improve our understanding of a company’s choice processes underlying its financial reporting, including its handling of complexity and uncertainty, and its use of innovations in techniques and organisational forms for decision support.
Original languageEnglish
Number of pages34
Publication statusUnpublished - 21 Mar 2016
EventBritish Accounting & Finance Association Annual Conference 2016 - University of Bath, Bath, United Kingdom
Duration: 21 Mar 201623 Mar 2016
http://www.bafa.ac.uk/events/upcoming-events/annual-conference.html

Conference

ConferenceBritish Accounting & Finance Association Annual Conference 2016
Abbreviated titleBAFA 2016
CountryUnited Kingdom
CityBath
Period21/03/1623/03/16
Internet address

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Keywords

  • financial reporting
  • perceived costs
  • fieldwork analysis
  • decision support

Cite this

Smith, J., Reid, G., & HSU, Y-L. (2016). Choices of financial reporting regimes and techniques and underlying decision-making processes. Paper presented at British Accounting & Finance Association Annual Conference 2016, Bath, United Kingdom.