Skip to content

Economic determinants of accounting policy choice: the case of current cost accounting in the UK

Research output: Contribution to journalArticle

This study seeks to identify economic and financial characteristics that distinguish three groups of companies classified by response to the U.K.'s mandatory CCA standard (SSAP 16) as loyal compliers, early defectors and hard-line noncompliers. Three major explanatory variables emerge – leverage, firm size, and the fixed assets to total assets ratio. Overall results suggest that a major motivation for compliance was lower income reporting, especially as an argument for continuing recognition of CCA for tax and regulatory purposes. The belief that noncompliance was largely motivated by preparation costs is discounted.
Original languageEnglish
Pages (from-to)87-114
Number of pages28
JournalJournal of Accounting and Economics
Volume15
Issue number1
DOIs
Publication statusPublished - Mar 1992

Related information

Relations Get citation (various referencing formats)

ID: 127270