An Investigation of Organisational Effects of Consolidated Financial Statement. An Exploratory analysis on the Italian Municipalities.

The consolidated financial statements (CFS) are considered both as an external reporting tool and as an integral part of the broader reform of the internal accounting system for organizations. The analysis is aimed at understanding the perception of the possibility of use CFS for assessing group performance and the organisational implications. This survey was carried out through questionnaires sent to the Italian Municipalities addressing the mandatory adoption of CFS. The results show that the CFSs are perceived as a useful tool for studying and evaluating the boundaries of the local group. However, it is not perceived as potentially suitable for modifying the configuration of the group. With regard to the group’s performance, the results are contradictory. The main approach of controlling Municipalities is a top-down relation with the subsidiaries, not oriented towards a strategic vision of the group. In fact, the majority of local authorities believe that relations with the subsidiaries are often of a conflictual nature, rather than open collaboration.