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An agency perspective on the accounting costs used in various roles in the regulation of a state-owned natural monopoly: The British Gas Corporation 1972-86

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  • W. M. McInnes

Abstract

This study describes and analyses the accounting costs reported in the financial statements of the British Gas Corporation (BGC) during its fourteen years (1972-86) as a state-owned natural monopoly. Evidence is provided of the various roles in which these accounting costs were used in the regulation of the corporation. The agency perspective developed by Whittington (1985) is used to provide an analytical framework for discussion of the effects of BGC's accounting costs on the allocation of burdens and rewards between gas consumers and taxpayers through being used in these various roles. Further analytical insights are drawn from developments subsequent to privatisation in 1986.

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  • W. M. McInnes, 2002. "An agency perspective on the accounting costs used in various roles in the regulation of a state-owned natural monopoly: The British Gas Corporation 1972-86," Accounting History Review, Taylor & Francis Journals, vol. 12(3), pages 387-418.
    • Handle: RePEc:taf:acbsfi:v:12:y:2002:i:3:p:387-418
    DOI: 10.1080/09585200210164575
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    References listed on IDEAS

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    1. Geoffrey Whittington, 1994. "Current cost accounting: its role in regulated utilities," Fiscal Studies, Institute for Fiscal Studies, vol. 15(4), pages 88-101, November.
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    5. Guay, W. & Kothari, S.P. & Watts, R.L., 1996. "A Market-Based Evaluation of Discretionary-Accrual Models," Papers 96-01, Rochester, Business - Financial Research and Policy Studies.
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    8. Jarrell, Gregg A., 1979. "Pro-producer regulation and accounting for assets : The case of electric utilities," Journal of Accounting and Economics, Elsevier, vol. 1(2), pages 93-116, August.
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    Cited by:

    1. Georgiou, Omiros & Jack, Lisa, 2011. "In pursuit of legitimacy: A history behind fair value accounting," The British Accounting Review, Elsevier, vol. 43(4), pages 311-323.

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