Consolidated financial reports in local government : a comparative analysis of IPSASB and SCMA

• Municipal and local governments seem to use other entities to a larger extent to organise and co-ordinate their activities. Thus the need and demand for consolidated financial statements has been observed in several countries as well as by international standard-setters such as the International Public Sector Accounting Standards Board (IPSASB). Sweden introduced consolidated financial statements in municipalities and local governments in the 1980s and is one of the few countries where consolidated financial statements for municipalities and local governments are fully implemented. The aim of this study is to analyse similarities and differences in the approach to consolidated financial statements in standards issued by the IPSASB and the Swedish Council for Municipal Accounting (SCMA). The analysis is based on data from documentary studies and interviews. The results show that the two standard-setters approach the problem of consolidation quite differently. While the IPSASB seems to emphasise decision-making, the SCMA accentuates accountability. As a result, the standard-setters come to different conclusions about such matters as concept of control, valuation and methods of consolidation.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

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