The adoption of an accounting innovation in France : The case of consolidated financial statements at Pechiney (1956–1971)

Auteur(s) : Bensadon, Didier

• Notice du document

  Titre / Title

  The adoption of an accounting innovation in France : The case of consolidated financial statements at Pechiney (1956–1971)

  Auteur(s) / Author(s)

  Bensadon Didier, auteur principal

  Type de document

  Article

  Collection

  Accounting History , N° 3 vol 20, p. 288-309

  Publication

  s.l. : 2015

  Description technique / Physical description

  21 p.

• Langue / Language

  Anglais

• Description

  • Résumé / Abstract

    Academic publications on the adoption of accounting innovations, such as consolidated accounts, have primarily focused on countries that use accounting methods developed in the USA, Australia and the UK. This article examines why Pechiney, a French company of international standing, adopted consolidated accounts in France during the 1960s. The findings indicate that Pechiney, aware that the production of consolidated financial statements was one of the criteria for acceptance, opted for consolidation in a bid to ensure that the company would be listed on the New York Stock Exchange. But this was not the only motivation. Firstly, Pechiney’s board of directors wanted to strengthen the parent company’s control over its subsidiaries by imposing consolidation procedures. Secondly, by acquiring expertise in the domain, the board hoped to exert substantial influence over the Conseil national de la comptabilité (French accounting standards authority) as and when this body was ready to introduce financial consolidation regulations.