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The Relevance of Group Accounting on Internal Decision Making

By Jonas Möller


A company’s financial management is one of the key aspects for the leadership of the company. Management makes decisions regarding the company’s future investments and endeavors, largely based on the financial statements and overall financial situation in the company. When discussing useful information in the context of decision making the financial statements of a company is the primary source. Adding group financial statements into the decision-making process should increase the amount of information for the decision makers but is the information relevant? The purpose of this thesis to examine the relevance and added value of the group profit and loss statement and balance sheet bring to the decision process of the management. - What financial information guides the internal decision making in companies? - How relevant is the group financial statements for the internal decision making? The method of this thesis is a case study with semi structured interviews and analysis based on the grounded theory. The results of the thesis are divided, depending on the view. From the researchers point of view the thesis did not yield the results the researcher was hoping for as the subject foundation within the company was too low. On the other hand the results contradict most of the research on the subject matter as the relevance of the group financial statements were much lower for this type of small entity then it is assumed for larger entitie

Topics: Group Accounting, Consolidated Financial Statements, Decision Making, Relevance, 512 Företagsekonomi
Publisher: Åbo Akademi
Year: 2019
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