Design of economic information. A pilot study of accounting information in decision-making processes

Accounting information is developed for an analytic decision-making process, whereas many farmers use an intuitive process. The aim is to determine the decisions and parts of the decision-making that farmers use for accounting information, and to what extent accounting information would be more useful if it was designed to fit the decision-making process used. A limited sample of milk-producing farmers in Uppsala County, Sweden, was studied. For detecting scale problems, the values of the financial statement were of primary importance and the design of the profit and loss statement was of secondary importance. For detecting efficiency problems, the values of the profit and loss statement were most important, the content of the commentary information was the second most important, and the design of the financial statement was the third most important. Farmers using an intuitive decision-making process perceived problem detection to be easier if the information was designed to fit the intuitive process. However, farmers using an analytic decision-making process did not perceive problem detection to be easier if the accounting information was designed to fit the analytic process. Also they valued the information designed for the intuitive process.     

Transition strategies for the forest sector

Because of limited wood resources the Scandinavian forest sector will soon have to make the transition from rapid to slow industrial growth. This will mean increased wood prices, excessive removals, increased centralisation, and reduced employment. The authors discuss the strategies available to cushion the effects of the transition, and the factors that should be taken into account when choosing a strategy. Their conclusions are based on a computer model which enables possible developments in the forest sector over the next 30–50 years to be simulated quickly.