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.
|Number of pages||34|
|Publication status||Unpublished - 21 Mar 2016|
|Event||British Accounting & Finance Association Annual Conference 2016 - University of Bath, Bath, United Kingdom|
Duration: 21 Mar 2016 → 23 Mar 2016
|Conference||British Accounting & Finance Association Annual Conference 2016|
|Abbreviated title||BAFA 2016|
|Period||21/03/16 → 23/03/16|
- financial reporting
- perceived costs
- fieldwork analysis
- decision support
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.