From Consolidation to Segment Reporting in Local Government： Accountability Needs, Accounting Standards, and the Effect on Decision-Makers
Year: 2014
Type: article
Abstract: 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.
Authors: Giuseppe, Enzo Grossi, Elisa Elisa, Mori, Federica, Bardelli
Institution: University of Siena
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2118620775