Journal of Accounting and Economics Vol. 17 No. 1-2 1994
Contracting cost determinants of GAAP for joint ventures in an unregulated environment
Abstract
As in other countries, Australian accounting for unincorporated joint ventures varies systematically between firms in different phases in the extractive industries (explorer vs. producer). We argue that these differences in accounting method can be explained by differences in the type of assets and the manner in which they are owned and financed. We hypothesize that when unincorporated joint ventures are financed on a with-recourse basis they will be proportionately consolidated; when they are financed on a non-recourse basis one-line reporting is expected. Empirical results are consistent with this hypothesis and appear to generalize to the real estate industry.
- DOI
- 10.1016/0165-4101(94)90006-x
- Volume
- 17
- Issue
- 1-2
- Pages
- 95-111
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref