Accounting for Concessions : An Empirical Analysis of Financial Statements of Italian Listed Companies

This paper analyses the relation between regulation, accountability and accounting of concession contracts in three major sectors: motorways, utilities and energy. Firstly it identifies major problems in the accounting rules for concession contracts also analysing how political forces are influencing the level of accountability and disclosure of such operations in private and public financial statements. Secondly it verifies, through a desk analysis of financial statements of concessionaires, how accounting practices are evolving, which variable affect the accounting choices and if the new accounting framework, in use since 2010, ensures a sufficient level of accountability of financial statements to all stakeholders. Overall, it tries to draw some general lessons to improve the accountability of concessions worldwide