Accounting History recent issues

Editorial

Carnegie, G., West, B. — 2008-07-25

Strategies in the development of accounting history as an academic discipline

Richardson, A. J. — 2008-07-25

Accounting history has emerged as an academic discipline over the last 40 years within English speaking countries. There is now a critical mass of researchers, dedicated journals and conferences, and a significant body of literature that is increasing in scope and depth. This article examines the strategies that, ex post , can be seen as important in developing accounting history as a discipline. Three strategies are identified: (1) making accounting history relevant (to education, standard-setting, and organizational memory/identity), (2) making accounting history controversial (by identifying positive and negative exemplars, providing historical critiques of mainstream research, and encouraging methodological/ theoretical pluralism within accounting history), and (3) institutionalizing accounting history (by developing academic associations, journals and conferences, and embedding accounting history within a network of supporting organizations including universities, professional associations, libraries, research centers and publishers). The article concludes by identifying the weak points in the disciplinary project.

"Working rules for financial statements" and pre-Second World War financial reporting of Japanese industrial firms: the case of chemical firms

Noguchi, M., Nakajima, M. — 2008-07-25

The purpose of this study is (1) to explore how financial reporting was practised under the condition of shareholders' effective governance that operated in Japanese industrial firms in the pre-Second World War period and (2) to investigate reasons why the Working Rules for Financial Statements issued in 1934 had no important impact upon financial reporting practice by examining empirical data for the pattern of reporting adopted by 18 chemical firms. The study demonstrates that the reason for the absence of practical impact of the Working Rules was not simply the lack of enforcement power, as suggested in prior studies, but that financial reporting practice was influenced by: an extreme concealment policy founded on the unfinished separation of management from ownership; the formation of the new business concerns in the Japanese chemical industry; and a prolonged industrial slump in the chemical industry during the 1920s and the early 1930s.

The curious case of the Occidental and Regal: the evolution of solvency and disclosure standards in the Australian life insurance industry

Keneley, M. — 2008-07-25

In 1990, the Australian life insurance industry was rocked by a scandal that threatened to destabilize consumer confidence in the ability of insurance providers to meet policyholder liabilities. The incident highlighted the nature of the agency problems that arise when conditions of asymmetric information exist. It revealed systemic weaknesses in accounting, solvency and disclosure standards as they applied to life insurers. This article uses an evolutionary concept of agency to analyse government and industry responses to this event. It is argued that initial adaptive responses stabilized the industry and averted a more serious crisis. Longer term innovative responses led to the introduction of a new and more rigorous approach to reporting and solvency standards, which has improved information flows and agency outcomes.

Elucidating needs, lifestyles, and community: researching a late eighteenth-century account book from Lexington, Virginia

Bloom, R., Solotko, J. — 2008-07-25

This article deals with the search for the identity of the individual for whom an elaborate late eighteenth-century American account book was prepared. The article is also concerned with how the account book served the needs of this merchant and how the book reflects the socio-economic conditions of the times in which the merchant lived. This book shows his multifaceted activities as a merchant, importer, exporter and banker, highlighting the lack of specie and extensive use of barter at the time.

An analysis of accounting history research in Portugal: 1990--2004

de Serra Faria, A. R. S. — 2008-07-25

This study analyses and reports on the development of accounting history research in Portugal across a period of 15 years spanning 1990 to 2004. In so doing, it builds a database of all the contributions on accounting's past appearing in Portugal and those of Portuguese authors disseminated abroad over this period. The study further explores publishing patterns in the Portuguese accounting journals, providing an array of evidence such as the number of accounting history articles per journal, the gender of authors and the time spans and subject areas examined. While the results indicate that there are topics and periods still unexplored or deserving wider examination in Portuguese accounting history, they also reveal a significant extension of the work in this field, especially from 2002 to 2004. This increasing trend is particularly visible in the number of articles published in international journals and the number of papers submitted to international congresses, providing Portuguese accounting history research with a growing international visibility.

Book review: Gatekeepers: the Professions and Corporate Governance: John C. Coffee Jr. Oxford University Press, Oxford, 2006

Maltby, J. — 2008-07-25

Book review: Financial Reporting and Global Capital Markets: a History of the International Accounting Standards Committee, 1973--2000: Kees Camfferman and Stephen Zeff. Oxford University Press, Oxford, 2007

Walton, P. — 2008-07-25

Book review: Indecent Disclosure: Gilding the Corporate Lily: F. Clarke and G. Dean. Cambridge University Press, Cambridge, 2007

O'Connell, B. — 2008-07-25

2007 Manuscript Award

2008-07-25

Accounting History Publication List 2007

Foreman, P. — 2008-07-25

The list of selected publications including book reviews published in English is intended to assist accounting history researchers and those with an interest in accounting history scholarship to gain an appreciation of recent contributions to the literature. It is not intended to be an exhaustive listing and the exclusion of a publication from the list is not a reflection of the quality or potential contribution of the publication. Rather the items listed may be viewed as indicative of the types of research conducted over the period.

Editorial

Carnegie, G., West, B. — 2008-04-29

Mary Addison Hamilton, Australia's first lady of numbers

Cooper, K. — 2008-04-29

The name Mary Addison Hamilton (Addie) does not appear in any of the recorded histories of the accounting profession in Australia even though there is ample evidence to suggest that she is deserving of such a place. Addie was one of the first women to achieve membership of one of Australia's recognized professional accounting bodies and, thereby, one of the first in the British Empire. This distinction was achieved in the early twentieth century, when restriction of women entering the professions was common. In addition, Addie achieved a permanent position in the public sector at a time when Australian women were traditionally denied such positions. This article is a celebration and acknowledgment of the achievements of this remarkable woman who worked tirelessly as a clerk in the public service while using her accounting skills to train new accountants and assist a number of charitable and not-for-profit organizations.

The origins of auditor liability to third parties under United States common law

Baker, C. R., Prentice, D. — 2008-04-29

This article traces the origins of auditor liability to third parties under United States common law, with a particular emphasis on the role of Benjamin Cardozo as Chief Judge of the New York Court of Appeals in the period from 1917 to 1932. Prior to the Ultramares decision, written by Chief Judge Cardozo in 1931, auditors were relatively shielded from liability against lawsuits brought by third parties (those who are not the client). In the Ultramares decision, Cardozo opened the door to a possible expansion of auditor liability to third parties through the introduction of a relatively new theory of law, that is that an auditor's negligence was heedless to such an extent that it was equivalent to fraud (that is, gross negligence). Subsequent to Ultramares, it appeared likely that the liability of auditors for negligent acts would be extended beyond their clients to the third parties who rely upon audited financial statements. However, because Ultramares has been interpreted in various ways in different jurisdictions, there has been ambiguity about the exact parameters of auditor liability to third parties under common law. Nevertheless, the Ultramares decision can be identified as the first instance in the United States where the courts opened up the possibility for third parties to sue auditors for negligent acts that were perceived to be so flagrant as to be equivalent to fraud.

Pacioli and humanism: pitching the text in Summa Arithmetica

McCarthy, P., Sangster, A., Stoner, G. — 2008-04-29

Despite the wide cross-disciplinary influence of Fra' Luca Pacioli's Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Summa), it has been criticized as being both difficult to read and written in a mixture of bad Italian and bad Latin; but, paradoxically, intellectuals of Pacioli's day praised the style of writing in Summa. Can both viewpoints be correct? The answer to this question is sought by identifying what may have inspired Pacioli to write Summa in the manner he did. In doing so, the article considers the times in which he lived and, in particular, the impact that Renaissance Humanism and Humanist Education may have had upon his writing style. The article finds both views were correct in their own timeframes and contexts and that Pacioli's writing style was both an appropriate one with which to address a contemporary merchant society and one which would impress and gain the approval of his fellow humanist educators and patrons.

The biblical jubilee: old wineskin for a new wine?

Moerman, L. — 2008-04-29

In the Biblical Old Testament a religious framework, Jubilee Law, provides a mandated procedure for dealing with the indebted Hebrew and his property.¹ Emerging from Mosaic Law, this framework is based on alternative perspectives of stewardship and societal economic relationships to the current domination of neo-liberalism in supranational organizations, in particular the international financial institutions. Themes and concepts emerging from Jubilee Law can offer the critical accounting literature a theological lens to critique accounting in the current global arena, especially the debt crisis of poor countries. A theological perspective, grounded in laws that protect the economically vulnerable, provides an alternative emancipatory discourse which has resonated with activist groups and others, and which challenges and critiques contemporary economic practices and offers an ethical framework for mandating social justice.

Book review: Promise fulfilled: the history of the accounting discipline at the University of Melbourne, 1925-2004: Geoff Burrows Melbourne: Melbourne University Publishing, 2006, xv and 280 pp

West, B. — 2008-04-29

Book review: More than a numbers game: a brief history of accounting: Thomas A. King John Wiley & Sons, Hoboken, NJ, 2006, xiii and 242 pp

Napier, C. — 2008-04-29

Report: The fifth Accounting History International Conference

Buhr, N. — 2008-04-29

Editorial

Carnegie, G., West, B. — 2008-01-04

The "Proper Trust of Liberty": economical reform, the English constitution and the protections of accounting during the American War of Independence

Funnell, W. — 2008-01-04

Prior to the nineteenth century the more lucrative public offices under the direct control of the Crown as part of the civil list were given as sinecures to favoured individuals. The use of these sinecures, pensions and other valuable appointments provided the Crown with the means by which it could buy influence and, thereby, undermine the constitutional authority and independence of parliament. In the main, civilian officers of the Crown were not accountable to parliament. Financial accountability for spending on the civil list was sporadic, without sufficient enforcement mechanisms and, therefore, a threat to the liberty of all "Englishmen". The financial and political strains that the American War of Independence placed upon England, combined with the abuse of patronage privileges by the Crown, provoked a movement for economical reform, most often associated with Edmund Burke, which sought the reform of both the civil list and executive accounts as protections for liberty. Crucial to convincing the government of the urgency of reform were reports from the Commissioners for Examining the Public Accounts.

"Controlling" as an academic discipline: the development of management accounting and management control research in German-speaking countries between 1970 and 2003

Schaffer, U., Binder, C. — 2008-01-04

This article aims to contribute to a better understanding of the structures and the development of management accounting and management control research in German-speaking countries between 1970 and 2003 as well as to the literature on "Comparative International Accounting History". It is mainly set in the "archive", using published articles and an empirical survey to describe and explain the development of controlling as an academic discipline in German-speaking countries. Eight explorative research questions on the development of the discipline are answered. The analysis covers three perspectives that complement each other: relevant chairs at German-speaking universities (input), German-language publications (output) and citations (outcome) on the subject. The results indicate that controlling has become an established discipline of business administration (Betriebswirtschaftslehre ) in German-speaking countries and can be considered a comparatively young field that has traditionally been highly practice-oriented, but also self-referential and for the most part not integrated into the international community. While publishing and citation patterns have changed over time in German-speaking countries they remain at variance with international management accounting research.

Implementation of supra-national policies: lessons from the Nordic countries' experiences of European directives

Aisbitt, S. — 2008-01-04

The article analyses the process of implementation of the Accounting Directives in the Nordic countries as a case study of supra-national regulation. The experiences in the Nordic countries are documented for an English-speaking readership based on the drafts of the legislation, commentaries by the implementing committees and interviews with individuals involved in the process. The article concludes that, in the current economic and political climate, the European Union has apparently drawn on the experience of implementing the original directives with its new model for regulating accounting change introduced with the IAS Regulation of 2002.

The struggle to develop accounting practices in the Australian Girl Guides, 1945 9: a microhistorical approach

Abraham, A. — 2008-01-04

There has been limited accounting history research in the areas of nonprofit organizations and women in a non-business environment. This article addresses these two gaps by considering accounting history in a large female-managed nonprofit organization, the Australian Girl Guides Association (GGA). In order to do this the article uses a microhistorical reconstruction of an individual to penetrate underlying motivations (Parker, 1999, p.31) and to allow the reader "to draw conclusions from a story that illustrates a fragment of peoples' lives and activities" (Williams, 1999, p.75) by revealing what would otherwise be unknown about the struggle to develop appropriate accounting practices in the context of organizational culture and history. It discloses that pertinent recommendations by GGA's fourth treasurer, Mrs O'Malley Wood, were ignored by management in a fiscally irresponsible manner. This article demonstrates that by focusing close attention on a seemingly minor individual, the researcher is able to discover the possible constraints that shaped human behaviour at a specific moment in history.

Book review: Financial reporting in the UK: a history of the financial accounting standards committee 1969 1990 Brian Rutherford Routledge, Oxford, ISBN 978 0-415 39421 5

Heazlewood, T. — 2008-01-04

Editorial

Carnegie, G. D. — 2007-11-05

Stitching it up: accounting and financial control at J & P Coats Ltd, c1890 1960

Kininmonth, K. W., McKinstry, S. — 2007-11-05

This study looks at the hitherto unexamined accounting and financial arrangements that undergirded the management of J & P Coats Ltd, one of Britain's largest and most successful multinational companies, from 1890 to 1960. Four elements of Coats' financial systems are scrutinized: consolidation accounting, the control and funding of subsidiaries, private ledgers and, finally, management accounting practices. The contribution of each to detailed organizational control and the maintenance of secrecy/ confidentiality is analysed. The article concludes that each element contributed substantially to these objectives. The study has implications for the debate on British entrepreneurial failure, in which it is alleged by some writers that Britain's family-owned holding and subsidiary-type companies did not achieve their potential. It makes it clear that Coats was highly successful, in part due to its tight accounting systems and controls. The study opens up the possibility that other examples may be found where successful British businesses based on family capital relied on similar management and accounting controls.

The 1770s, a lively decade for quality control: the case of the Royal Tobacco Factory of Seville

Gutierrez, F., Romero, D. — 2007-11-05

It is generally agreed that management and accounting can only be understood in their organizational and social contexts (Miller, 1994). In this sense, several studies have addressed management techniques in specific eighteenth-century organizations with regards to the improvement of quality in the factory (Cox, 1990; Gutiérrez & Romero, 2001; Álvarez et al., 2002). This study shows several examples of quality decisions taken on an ad hoc basis in the Royal Tobacco Factory of Seville during the 1770s. The main contribution of this work is to show that quality was not only "a wish of the managers", expressed as a set of instructions. Rather, we also show that these decisions can only be understood within the Spanish Enlightenment context; that is, they can be rationalized in terms of the search for the efficiency of the production process in the royal factories, and in the Crown's desire to raise the royal incomes.

The Elting and Hasbrouck store accounts: a window into eighteenth-century commerce

Hollister, J., Schultz, S. M. — 2007-11-05

During the eighteenth century, the rural community of New Paltz, located in New York's mid-Hudson River valley, was served by two general stores, one run by the Hasbrouck family and the other by the Elting family. Using archival data, this study compares the operations of these two stores in the late 1790s. The results indicate that the two stores had similar operations but different customer bases. The accounting records illustrate the key role played by small town merchants in facilitating commerce, providing financing, and supporting the social structure of the community. The accounts also illuminate issues of power and control during the era, and provide evidence of the unequal treatment accorded to local residents based on gender. Using the experiences of ordinary people, the study expands our understanding of the role of accounting in fostering business life and competition in early America.

Exploring the dimensions of the international accounting history community

Carnegie, G. D., Rodrigues, L. L. — 2007-11-05

This study explores the present-day dimensions of the international accounting history community with a focus on examining the formal (that is institutionalized) and informal (that is non-institutionalized) arrangements for accounting history in various countries and regions. Following a review of recent commentaries on the state of accounting history, the study elucidates the dimensions of the field where accounting history associations or special interest groups operate, comprising Australia and New Zealand, China, Italy, Japan, Portugal, Spain and the USA, and also depicts the informal arrangements in place for the accounting history community as identified in France and in the UK. The study is intended to enhance understanding of the nature, size and dynamics of this expanding group of scholars and to assist any future enquiries into the drivers of organizational success and the relative health of accounting history in the different jurisdictions.

Accounting History Publication List 2006

Foreman, P. — 2007-11-05

Ad Hoc Manuscript Referees 2006

2007-11-05