TY - JOUR
T1 - From consolidation to segment reporting in local government
T2 - accountability needs, accounting standards, and the effect on decision-makers
AU - Grossi, Giuseppe
AU - Mori, Elisa
AU - Bardelli, Federica
PY - 2014
Y1 - 2014
N2 - Consolidated Financial Statements (CFSs) in the public sector represent useful financial tools to improve transparency and accountability toward internal and external users. This aggregate view is only a part of the information needed in order to give politicians, managers, employees, financial institutions, rating agencies, and citizens a whole view of a local government’s financial performance. It emerges the need to have segment information, covering specific policy areas for which it is appropriate to separately report financial and non-financial information. This paper, after having discussed the need for accountability and decision-making in a theoretical framework, gives account of a pilot project realized by the municipality of Reggio Emilia, which introduced CFSs and segment reporting. The empirical study is based on an action research as a methodological approach to solving practical problems. Finally, the paper also offers some practical suggestions to contribute to the applicability of the segment reporting in the public sector.
AB - Consolidated Financial Statements (CFSs) in the public sector represent useful financial tools to improve transparency and accountability toward internal and external users. This aggregate view is only a part of the information needed in order to give politicians, managers, employees, financial institutions, rating agencies, and citizens a whole view of a local government’s financial performance. It emerges the need to have segment information, covering specific policy areas for which it is appropriate to separately report financial and non-financial information. This paper, after having discussed the need for accountability and decision-making in a theoretical framework, gives account of a pilot project realized by the municipality of Reggio Emilia, which introduced CFSs and segment reporting. The empirical study is based on an action research as a methodological approach to solving practical problems. Finally, the paper also offers some practical suggestions to contribute to the applicability of the segment reporting in the public sector.
KW - Consolidated Financial Statements (CFSs)
KW - International Public Sector Accounting Standards (IPSAS)
KW - action research
KW - local government
KW - segment reporting
M3 - Article
SN - 1548-6583
VL - 10
SP - 32
EP - 46
JO - Journal of Modern Accounting and Auditing
JF - Journal of Modern Accounting and Auditing
IS - 1
ER -