Full Title
FINANCIAL REPORTING
Publisher
FrancoAngeli
ISSN
2036-671X (Printed Journal)
2036-6779 (Online Journal)
Journal Issue Number
1
Journal Issue Designation
1
Journal Issue Date
2021
Full Title
Is risk reporting a possible link between financial and management accounting in private firms?
By (author)
First Page
29
Last Page
60
Language of text
English
Publication Date
2021/06
Copyright
2021 FrancoAngeli srl
Introduction or preface
This study represents a theoretical analysis with the purpose to continue the discussion on the relationship between management accounting (MA) and financial accounting (FA), by concentrating on the role of risk reporting as a possible manifestation of their convergence. Moreover, the analysis focuses on the private-firm sector as private firms represent the backbone of the economic system of several countries and little is known about financial and non-financial reporting. Drawing on the neo- Durkheimian institutional theory, this paper develops a conceptual framing that considers risk as an embedded element of the business domain and risk reporting as a direct outcome of the convergence between MA and FA in private firms. Furthermore, the neo-Durkheimian institutional theory emphasizes that the owners and managers' risk attitude is a crucial element affecting risk disclosure, especially in private firms.
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