Arne Fagerström

Accounting for Competition, ‘Circuits of Power’ and Negotiated Order between Not‐For‐Profit and Public Sector Organisations

This study analyses the role of accounting information in negotiating contractual relationships in the framework of circuits of power during a competitive tendering process. The study asks how inst ...

Research Note Compliance with group accounting standards - the vertical adjustment issues: field studies of multi-nationals

Compliance with accounting standards is a major issue in Europe and elsewhere. Research on the horizontal dimension shows non-compliance even though financial reports state compliance and auditors concur. The vertical dimension is more relevant to discover the extent and reasons for non-compliance. Previous research shows that financial executives of multi-nationals indicated non-compliance when asked directly, even though financial reports and auditors state compliance. This follow-on study uses field-studies of subsidiaries of multi-nationals in three countries to explore the extent and reasons for non-compliance for vertical adjustments when consolidating. The method of agreement and method of differences were used to analyse data. Results show substantial non-compliance and some reasons for non-compliance, notably income smoothing. The vertical dimension is appropriate for continued research and this study provides a model for similar research.