This paper investigates the use of customer profitability analysis (CPA) in four and five star hotels located in Algarve (Portugal). Traditional accounting systems have been criticized for focusing on product, service or department profitability, and not on customer profitability, thus failing to provide effective information to marketing-related decisions. Results are reported by operating departments, whilst marketing activities focus on customer market segments. Recognizing the growing emphasis on customer value creation, and to overcome the mismatch between the provision and use of information in hotels, CPA techniques have been suggested. Notwithstanding their benefits, namely a strategic focus, hotels still apply traditional techniques. A structured questionnaire collected through personal interviews showed that CPA is far from widespread in hotel management; instead, hotels accumulate costs in profit centers and in cost centers. None of the surveyed hotels had adopted activity based costing, despite this technique being viewed as the most appropriate to calculate individual customer profitability.

The Lisbon School of Commerce, established in 1759, was important in the diffusion of knowledge about accounting in Portugal and the Portuguese Empire. Although scholarly literature has canvassed the reasons for the school’s creation, and has profiled its first two teachers, little is known about the manuscripts that were dictated in classes, or the early textbooks used. This paper fills this void by exploring three manuscripts used in the Lisbon School of Commerce that are indexed at the National Library of Portugal and the University of Coimbra Library. Two important insights emerge. We show how Souza and Sales used the technical and the rhetorical dimension of accounting to diffuse new accounting practices; and we reveal why manuscripts were dictated and why they were used in the classroom. In doing so, we explore how double entry bookkeeping (DEB) was taught and we highlight how Souza and Sales helped to diffuse DEB knowledge in Portugal.

This paper examines the existence of conservative practices in the Portuguese accounting system, and whether these conservative practices affect the comparability of financial information provided by companies. We particularly examine whether the book value figure can be understated due to conservative practices to protect creditors' interests (balance sheet conservatism) and whether accountants delay the recognition in earnings of good news, while they recognize immediately bad news (earnings conservatism). Using a Basu (1997) type reverse regression and a simple adaptation of the Ohlson (1995) valuation model, the paper gives evidence concerning the existence of both definitions of conservatism in Portuguese accounting practices. A sample of non-financial Portuguese, German and British companies was used. Our results also show the larger earnings conservatism of British firms relative to Portugal and Germany, and surprisingly, that Portugal is more BS (larger understatement of shareholders' equity) conservative than the United Kingdom. The results have implications for accounting standard setting and they can be useful for both the European Commission and the IASB since they provide some insight into the properties of accounting figures in Portugal.

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The purpose of this article is to examine the extent to which the clauses for the exclusion of subsidiaries from consolidation are used, in order to assess the degree of compliance with accounting regulation and the effectiveness of the statutory auditor as an enforcement mechanism in case of observed non-compliance. The presentation of consolidated financial statements by Portuguese companies was not regulated in detail before the implementation of the EU's Seventh Directive and the general obligation to prepare consolidated accounts had not applied to Portuguese companies until 1991. Regulators have been responsible for the endorsement of accounting rules and managers are responsible for the information disclosed by Portuguese companies regarding the scope of group accounting. In practice, the scope of consolidation depends on the judgment of makers and managers of the parent company. Auditors may play a key role in the process of guaranteeing the correct application of prevailing standards and thus encompassing the enforcement of accounting regulations and contributing to the quality of disclosed information. Our sample includes the consolidated financial statements of all the Portuguese companies listed in the Lisbon Stock Exchange on December 31st for the year 1999, to which the Official Accounting Plan is applicable. Our conclusion is that diversity exists among accounting practices regarding the adopted group concept and the use of the clauses for excluding subsidiaries from consolidation. The role of the auditors as enforcement actors seems to be minor, as we did find few qualifications in their audit reports in the cases of observed non-compliance with the accounting regulation.
Em Portugal não existiu regulamentação sobre informação consolidada até 1991, quando foi publicado o Decreto-Lei nº 238/91, de 2 de Julho, que transpôs para o ordenamento jurídico-contábil português as normas de consolidação de contas estabelecidas na Sétima Diretiva Comunitária (83/349/CEE). Surgiu assim a obrigação geral de as empresas portuguesas sujeitas ao Plano Oficial de Contas (POC) elaborarem, divulgarem e publicarem contas consolidadas. As entidades com funções de regulamentação na área contábil têm sido responsáveis pelo processo de elaboração das normas, enquanto os membros dos órgãos de direção e gestão das empresas são responsáveis pela informação contábil consolidada dos grupos. Os Revisores Oficiais de Contas (ROCs) podem desempenhar um papel importante, assegurando a correta aplicação das normas contábeis e contribuindo assim para a melhoria da qualidade da informação publicada. O objectivo deste artigo é analisar o conceito de grupo e a extensão da aplicação das cláusulas de exclusão de filiais do perímetro de consolidação, com o objectivo de avaliar em que medida as empresas cumprem as normas contábeis, e avaliar o papel dos Revisores Oficiais de Contas como mecanismo de enforcement em caso de não cumprimento. Neste artigo analisam-se os relatórios e contas consolidados de todas as empresas-mãe com acções ad...