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Making concessions: Political, commercial and regulatory tensions in accounting for European roads PPPs

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  • Anne Stafford
  • Basilio Acerete
  • Pam Stapleton
Abstract
Governments increasingly use private finance to fund roads infrastructure. In particular the European Commission has promoted the use of public private partnerships (PPPs) to deliver the projects forming the trans‐European Network. This use of private finance raises important questions about how public monies and assets are accounted for. The paper examines, first, accounting in both public and private sectors for roads PPPs in Spain and the UK, countries which not only have considerable experience in the use of private finance for the provision of roads but also act as exemplars of a number of differences which may be significant from an international perspective in terms of financial reporting and economic outcomes. Second, it examines the tensions between national, European Union and international accounting pronouncements. Our findings suggest that the business environment has influenced the development of accounting policy. In Spain a powerful toll sector presence within the legal framework has led to substantial variations, having real economic impact. In the UK, the accounting regulator has prevailed over political concerns. For European public sector accounting, conflict remains between political choice and technical accounting. These findings may have global relevance, as the adoption of international accounting pronouncements will not remove these conflicts.

Suggested Citation

  • Anne Stafford & Basilio Acerete & Pam Stapleton, 2010. "Making concessions: Political, commercial and regulatory tensions in accounting for European roads PPPs," Accounting and Business Research, Taylor & Francis Journals, vol. 40(5), pages 473-493.
    • Handle: RePEc:taf:acctbr:v:40:y:2010:i:5:p:473-493
    DOI: 10.1080/00014788.2010.9995324
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    References listed on IDEAS

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    1. Laura Arnedo Ajona & Fermin Lizarraga Dallo & Santiago Sanchez Alegria, 2008. "Discretionary Accruals and Auditor Behaviour in Code-Law Contexts: An Application to Failing Spanish Firms," European Accounting Review, Taylor & Francis Journals, vol. 17(4), pages 641-666.
    2. Benito, Bernardino & Montesinos, Vicente & Bastida, Francisco, 2008. "An example of creative accounting in public sector: The private financing of infrastructures in Spain," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(7), pages 963-986.
    3. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications - Books, The World Bank Group, number 15024.
    4. Antonio Estache, 2001. "Privatization and Regulation of Transport Infrastructure in the 1990s'," ULB Institutional Repository 2013/43998, ULB -- Universite Libre de Bruxelles.
    5. repec:eme:aaaj00:09513570310482318 is not listed on IDEAS
    6. Lourdes Torres & Vicente Pina, 2001. "Public-private partnership and private finance initiatives in the EU and Spanish local governments," European Accounting Review, Taylor & Francis Journals, vol. 10(3), pages 601-619.
    7. Susan Newberry & June Pallot, 2003. "Fiscal (ir)responsibility: privileging PPPs in New Zealand," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 16(3), pages 467-492, August.
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    Cited by:

    1. Cepparulo, Alessandra & Eusepi, Giuseppe & Giuriato, Luisa, 2020. "Public finances and Public Private Partnerships in the European Union," MPRA Paper 103918, University Library of Munich, Germany.
    2. Alessandra Cepparulo & Giuseppe Eusepi & Luisa Giuriato, 2024. "Public Finance, Fiscal Rules and Public–Private Partnerships: Lessons for Post-COVID-19 Investment Plans," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(1), pages 191-213, March.
    3. Peda, Peeter & Vinnari, Eija, 2020. "The discursive legitimation of profit in public-private service delivery," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 69(C).
    4. Martijn van den Hurk & Marlies Hueskes, 2017. "Beyond the financial logic: Realizing valuable outcomes in public–private partnerships in Flanders and Ontario," Environment and Planning C, , vol. 35(5), pages 784-808, August.
    5. Acerete, Basilio & Stafford, Anne & Stapleton, Pamela, 2011. "Spanish healthcare public private partnerships: The ‘Alzira model’," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(6), pages 533-549.

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