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Inter‐Organisational Alliances and the Importance of Accounting for Value in Kind Transactions: Exploring the Role of Formal Management Accounting Controls
Author(s) -
Burfitt Brian A.,
Baxter Jane,
Chua Wai Fong
Publication year - 2009
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2009.00046.x
Subject(s) - accounting , context (archaeology) , relation (database) , control (management) , management accounting , business , management control system , value (mathematics) , visibility , cash , economics , management , finance , computer science , paleontology , physics , database , machine learning , optics , biology
This article examines the role of management accounting control practices in relation to inter‐organisational alliances (IOAs) involving non‐cash, ‘value in kind’ (VIK) transactions. The research is undertaken in the context of a retrospective case study of the Sydney 2000 Olympic Games which examines how SOCOG managed and accounted for over $360 million of VIK. The case study is based on both document study and interviews with individuals involved with this aspect of the Sydney 2000 Olympic Games. On combining previous research concerning both the lifecycle ( Das and Teng 2002 ) and the nature of formal accounting controls ( Dekker 2004 ) in IOAs, a lack of directly transferable expertise from traditional accounting practices in relation to the following aspects of the management and control of VIK – recognition, planning/budgeting, procedures/rules and performance monitoring – becomes evident. Given the potential economic significance of VIK transactions, this suggests a need for both further research and professional discourse in this area to ensure sufficient visibility of, and management planning and control for, VIK transactions.