search query: @indexterm JOINT BUSINESS VENTURES / total: 864
reference: 7 / 864
| Author: | Lourenco, I.C. Curto, J.D. |
| Title: | Determinants of the accounting choice between alternative reporting methods for interests in jointly controlled entities |
| Journal: | European Accounting Review
2010 : VOL. 19:4, p. 739-773 |
| Index terms: | accounting reporting standards methodology joint business ventures strategy alliances United Kingdom |
| Freeterms: | business development partnerships |
| Language: | eng |
| Abstract: | It is examined whether the type of jointly controlled (hereafter as: j-c.) entity influences the management choice to report interests in this kind of joint venture using the equity method or proportionate (herein as: prpt.) consolidation. The U.K. setting is utilized where, due to the transition to IFRS, firms had to change their reporting method for interests in j-c. entities from the gross equity method to a similar approach or to prpt. consolidation (as: cnsld). Venturers are hypothesized to be more likely to change their reporting method to prpt. cnsld. when the majority of their j-c. entities are cases of Link instead of Scale cooperation. The results are consistent with the predictions, hence suggesting that the type of j-c. entity plays an important role in the management decision to report interests in j-c. entities using the equity method or prpt. consolidation etc. |
SCIMA