 Functions of accounting -- a discussionFrode Mellemvik, Norvald Monsen and Olov Olson Scandinavian Journal of Management, 1988, vol. 4, issue 3-4, 101-119 Abstract: From the many accounting objectives which have been suggested, it seems that the intended function of accounting is to reduce uncertainty in control and decision-making processes. However, after conducting a literature search of empirical studies of accounting in action we came to three conclusions about the functions assigned to accounting. First, we suggest that a number of functions are assigned to accounting in action. Second, there is a reciprocal relationship between accounting and the functions assigned to it. Third, there is a complex relationship between accounting and its context. The main function of accounting in a strong organizational context with interdependent organizations is to support legitimization processes, while the main function of accounting in a strong organization with a dependent environment is to support the organization in its exercise of power. Keywords: Accounting; function; action; legitimation; power (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:scaman:v:4:y:1988:i:3-4:p:101-119 Ordering information: This journal article can be ordered from Access Statistics for this article Scandinavian Journal of Management is currently edited by Janne Tienari More articles in Scandinavian Journal of Management from Elsevier |
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