The Accounting Review Vol. 59 No. 2 1984
The Curious Accounting Treatment of the Swedish Government Loan to Uddeholm.
Abstract
This article describes the successful attempt of the Swedish Government and Uddeholm to circumvent the normal accounting treatment for a government loan to a major company that found itself perilously close to defaulting on its long-term loans. While the transaction between the Government and the company was represented as being a loan, the Swedish Parliament enacted legislation requiring that it be accounted for as if it were a subsidy, hence improving the company's balance-sheet "solidity." The events described here illustrate how the economic consequences of a transaction can dictate its accounting treatment, as well as how the accounting profession can eventually persuade political decision makers not to interfere in accounting determinations.
- DOI
- 10.2308/tar-4488964
- Volume
- 59
- Issue
- 2
- Pages
- 342-350
- Language
- en
- Sources
- openalex crossref