The Relevance of the Consolidated Financial Statement in the Measurement of Local Government Liabilities
Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence
ISBN: 978-1-80117-162-5, eISBN: 978-1-80117-161-8
Publication date: 20 March 2023
Abstract
With the growth of municipal capitalism, both local governments (LGs) and their related entities are involved in debates about public sector financial debts. This chapter seeks a deeper understanding of the relevance of measuring liabilities through the consolidated financial statements (CFS). With regard to a sample of Italian LGs, the analysis show that debts calculated with reference to the CFSs is statistically different from that derived from the analysis of the separate financial statements (SFS). The authors also conclude that the differences are largely due to the impact of non-controlled entities, which are proportionately consolidated. The analysis of this study is limited to considering the impact of debt and does not take into account other financial or non-financial variables. The usefulness of CFSs must also be evaluated with reference to these elements.
Keywords
Citation
Carini, C. and Teodori, C. (2023), "The Relevance of the Consolidated Financial Statement in the Measurement of Local Government Liabilities", Caruana, J., Bisogno, M. and Sicilia, M. (Ed.) Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence (Emerald Studies in Public Service Accounting and Accountability), Emerald Publishing Limited, Leeds, pp. 131-149. https://doi.org/10.1108/978-1-80117-161-820231007
Publisher
:Emerald Publishing Limited
Copyright © 2023 Cristian Carini and Claudio Teodori