The authors analyse the effect of deregulation in the case of the removed requirement for Swedish municipalities to prepare consolidated financial accounts (CFAs) in their interim reports. The findings show  that  deregulation  led  to  a  statistically  significant, but not substantial,  reduction  in  CFAs. Municipalities  with  many  municipal  corporations tended  to  continue  preparing  CFAs.  CFAs therefore  appear  to  be  more  than a  compliance exercise, as  they  are  being  used for  monitoring and co-ordination purposes.