Is risk reporting a possible link between financial and management accounting in private firms?

Journal title FINANCIAL REPORTING
Author/s Chiara Crovini, Giovanni Ossola
Publishing Year 2021 Issue 2021/1
Language English Pages 32 P. 29-60 File size 173 KB
DOI 10.3280/FR2021-001002
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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.

Keywords: Risk reporting, risk, non-financial information, private firms, financial accounting, management accounting.

Jel codes: G14, G18, L20, M41, M48

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Chiara Crovini, Giovanni Ossola, Is risk reporting a possible link between financial and management accounting in private firms? in "FINANCIAL REPORTING" 1/2021, pp 29-60, DOI: 10.3280/FR2021-001002