Judicial Views on Accounting in Britain Before 1889

This paper examines the accounting content of British legal cases decided in the fifty year period before the 1889 Court of Appeal decision in Lee v. Neuchatel Asphalte Company. Before the birth of what might be described as an ‘accounting literature’, these early cases dealt with such important topics as periodicity, uniformity, matching and realisation. Although consistent concepts of asset valuation and income determination are not evident, the discussions by the courts are among the earliest expositions on a variety of accounting topics, especially those relating to the development of accrual accounting.     

Accounting for the Social Relations of Feudalism

It is becoming increasingly accepted that accounting concepts and practices can only be understood in their socio-historical context (e.g., Hopwood and Johnson, 1986). From this perspective, accounting scholars can both learn from historians, and may contribute to broader historical debates. The main purposes of the paper are: to make an accounting contribution to the debate between historians about the nature and development of feudalism in England and the transition to capitalism; to illustrate the general argument that accounting concepts and practices must be understood in the specific historical context in which they occur; and to suggest that a useful conceptual framework for understanding the emergence and development of feudal and capitalist accounting is Marx's concept of the ‘mode of production’.     

Revaluation of Fixed Assets in Accruals Accounting

The paper explores the topic of revaluation in accruals accounting under the assumption that an important purpose of financial statements is to report 011 management's financial performance. Having differentiated valuation and matching based approaches, the paper proceeds to indicate some reasons for revaluation in the latter by reference to the literature of management accounting and logical argument. It identifies exit value (net realisable value) as the most appropriate basis for valuation for the postulated purpose, but argues that revaluation should not occur annually but by reference to the expiration of ‘planning periods’ or to other specified events which may occur earlier. Therefore its arguments and proposals differ from those previously associated with advocates of exit value. The article concludes by discussing some of the practical issues arising from its suggestions.     

Of stars and galaxies – Co-authorship network and research

We examine the association between network centrality and research using the accounting research community setting. We establish co-authorship network using papers published in the five top accounting journals from 1980 to 2016. We find that the co-authorship network in accounting is a “small world” with some most connected authors playing a key role in connecting others. We use machine learning to label published papers with multiple topics and find patterns in topics over time. More importantly, we find that co-authorship network centrality is positively associated with future research productivity and topic innovation and that the impact of centrality on productivity is higher with more senior authors. Further, centrality of an author’s co-authors also has an incrementally positive impact. We conclude that network centrality positively influences research output.     

Sixty years of Accounting & Finance: a bibliometric analysis of major research themes and contributions

This article offers a systematic review of the major contributions in the journal Accounting & Finance over the past 60 years. We apply several different bibliographic tools to model highly cited articles and major strands of research that have significantly advanced research in accounting and finance across the Asia-Pacific region. An analysis of bursting (or ‘hot’) topics shows major research trends over time, including recent ‘hot’ topics such as China-related research, corporate social responsibility and sustainable finance. The article concludes by highlighting new research directions - Accounting & Finance has opened towards more interdisciplinary research and greater diversity in methods.     

Concept Mapping in a Financial Accounting Theory Course

ABSTRACT

This paper assesses the usefulness of concept mapping (an educational learning, assessment, and curriculum development technique developed by Novak, widely used in the natural sciences) within an accounting education context. It shows how an accounting-based concept map can be constructed by students and educators to provide a visual, conceptually transparent graphical representation of an individual's understanding of a particular knowledge domain. The method is firmly routed in Ausubel's theory of meaningful learning and its emphasis upon the hierarchical structure of concepts is particularly relevant to accounting. While concept mapping has been used extensively in many (particularly science) disciplines, it has received relatively little attention within accounting education. The paper's contribution is to extend its application within an accounting education context by focusing upon how concept mapping can enhance students' learning by evaluating student-prepared concept maps, showing how concept mapping can be used at different levels within a course (i.e. curriculum, topic and activity) and reporting feedback of its use with two cohorts of students, within a financial accounting theory component. The use of educator-prepared concept maps, with concepts omitted, proved popular as tutorial quiz exercises and increased the quantity and quality of participation. However, students were less willing to construct their own concept maps and engage in meaningful learning. While most students were able to build upon aspects of their prior knowledge, stronger students used a greater range of concepts, a richer set of linkages and more examples than weaker students did. Concept maps were useful in diagnosing students' and instructors' misconceptions. Many students found concept mapping relatively easy to use, provided a better understanding of complex issues, liked the visual representation and holistic view, and so supported their learning. However, educators need to become proficient in constructing maps and using appropriate software, not make the maps too complex, provide students with some initial training in the technique and consider the fit between using the techniques as a learning tool and as an assessment tool. While no significant differences were found in the usefulness of the method for students of different ages and gender, Asian students generally found the method to be more useful than did UK students.     

Case-based Reasoning and Multiple-agent Systems for Accounting Regulation Systems with Extensions

One of the areas of judgment research in accounting and financial applications is that of accounting regulation. Previously, artificial intelligence efforts at modeling human judgment in accounting regulation systems have concentrated on rule-based expert systems. In those systems, general heuristic knowledge was captured using ‘if … then …’ rules in order to model particular decision processes. Recent developments in artificial intelligence have focused on case-based reasoning (CBR) and multiple-agent intelligent systems (MAIS). The ideas behind CBR are that ‘if it worked once then remember to use it again’ and ‘if it did not work before, then remember to not use it again‘. MAIS assumes that many organizational systems can be treated as computational models of multiple-interacting intelligent agents. Typically, solutions may be derived using some form of negotiations between agents to accomplish single global or separate individual interacting goals. This paper argues that many accounting regulation judgment processes can be modeled using CBR and MAIS. As a result, it summarizes some examples of both CBR and MAIS useful in accounting regulation and extends those to other accounting applications. In addition, it describes the results of some previously developed systems that employ CBR or MAIS.     

Accounting for crime in the neoliberal world

This paper examines the recent European public sector accounting reform which introduces controversial calculative practices for the recognition of criminal activities in national accounts. Namely, accounting for unlawful drug production and drug trafficking, and accounting for prostitution. Challenging the presumption of accounting neutrality, this study analyses this “accounting for crime” policy from a semantic and an epistemological view point as a cognitive system of creation of meaning and formation of knowledge. The analysis reveals the polyhedrality of neoliberalism, and the way it exerts its influence on society through its circuitous discursive process of social construction and transfiguration of reality which flows crosswise its multiple dimensions. At the macro level this policy operates as a ‘hegemonic project’: It bonds together the economic and political interests of different ‘historical blocs’, making the implementation of these practices a matter of ‘common sense’. At the micro level this policy functions as an ‘apparatus of governmentality’: It encapsulates the cognition of crime within a panoptic logic of economic rationality, transforming its outcome into a contributory value of a country's prosperity. In this context, this study outlines the centrality of accounting practice as a pivotal tool of the neoliberal ideology: It permits extending the realm of calculative methodologies to the commodification of human weaknesses, addictions, and sexuality, in a rational process of accounting to balance the supply and demand of sex and drugs, between prostitutes and clients, pushers and addicts.     

Accounting textbooks: Exploring the production of a cultural and political artifact

This paper explores the production of introductory financial accounting textbooks in the UK. Despite being a pervasive pedagogical device (see Brown and Guilding, 1993, Accounting Education: an international journal, 4(2) pp. 211–218), there has been little research carried out which examines the role or contents of textbooks in accounting education. This is a surprising gap in the literature when one considers the numerous concerns that have been expressed regarding the content of accounting education, the values which it projects and the type of student which it produces. Drawing on contemporary research into textbooks, this paper considers accounting textbooks to be ‘cultural artifacts’ which may reflect the cultural, ideological, and political interests of particular groups in society. In this regard, introductory financial textbooks have the potential to reinforce cultural homogeneity through the advancement of shared attitudes. This study is based upon 12 semi-structured interviews with both textbook authors and commissioning editors. Results indicate that the contents of textbooks are the product of complex social and cultural relations. Whilst conflicts and negotiations may characterize the production process, the knowledge that is considered most ‘legitimate’ tends to be mandated, either directly or indirectly, by professional accounting bodies through course accreditation requirements. Furthermore, this knowledge reflects wider cultural issues and assumptions regarding the structure of society and of how it should be organized.     

A Proposal for Teaching Introductory and Intermediate Accounting in an Environment of International Financial Reporting Standards and Generally Accepted Accounting Principles for Private Enterprises*

Teaching introductory and intermediate financial accounting in an environment of international financial reporting standards (IFRS) and generally accepted accounting principles for private enterprises (GAAP for PEs) is an issue facing faculty at Canadian universities and colleges. We present a number of options and then propose an approach that we believe provides a balanced treatment of accounting standards for both publicly accountable and private enterprises. This approach focuses on the concepts and principles that are common to both IFRS and GAAP for PEs. We argue that this approach encourages deep learning resulting in students’ better understanding of accounting standards and their application.     

基于会计和治理信息的财务困境预测模型研究

本文以2005年上半年沪深两市中首次被ST的52家公司和52家非ST公司为研究对象，同时利用这些上市公司的会计信息和公司治理信息来构建财务困境预测模型。研究结果表明：（1）公司治理特征对公司陷入财务困境具有显著影响；（2）公司治理信息不能为财务信息所覆盖。一方面，说明公司治理结构对公司的财务安全具有重要影响，另一方面也说明今后在研究和构建财务困境预测模型时，不仅要考虑会计信息，还应考虑公司治理信息等，以构建出更为有效的预测模型。     

University Accounting Curricula: The Perceptions of an Alumni Group

Abstract

Many of the problems associated with accounting education could be due to at least two reasons: inadequate attention given to the design of accounting programmes, and the narrow view of stakeholder approach adopted in examining education issues. The existing literature mainly focuses on students' perception about issues such as teaching quality, alumni experience in major accounting firms, and so on. This paper deals with the design of accounting programmes, and proposes to ascertain the views of an important stakeholder group (i.e. alumni) on this issue. The findings of this study give credence to some of the generally held views, e.g. that it is no longer appropriate for tertiary education providers to adopt a one-size-fits-all approach. However, in some other areas, the findings represent a stark contrast to the views on certain issues promulgated by the professional bodies in New Zealand and overseas including the USA, (for example, the issue of appropriate proportions of accounting, business and liberal studies in an accounting programme). Notably, the respondents in general placed a low importance on auditing as part of an education programme. Further, in terms of the emphases that should be placed in an accounting programme, contrary to the endorsement in the literature, ‘work experience’ was not considered as important as other areas of emphasis, (e.g. global perspective, local perspective, professionalism and social and environmental perspective).     

Accounting for government grants: Standard-setting and accounting choice

This paper provides evidence on several matters relating to accounting for government grants under International Financial Reporting Standards (IFRS). Focusing on grants related to assets, we trace the development of International Accounting Standard (IAS) 20, outline some of the problems of current accounting practice, and suggest why these have not been addressed by the standard-setter. Then, by hand-collecting data relating to 559 firms from 15 countries, we empirically analyze several issues. We show that asset grants are economically important for some firms and that the frequency of grants is significantly different across the countries. For the non-financial firms in our sample, we identify the grant-related accounting policy choice: a firm can either show the grant as deferred income or net it against the asset. The options are roughly equally popular overall but the firm’s country of domicile is strongly associated with the choice. Further, as a key element of disclosure quality for this topic, we investigate whether or not the balance sheet-related numbers relating to grants are disclosed, finding that many firms do not disclose them. Disclosure quality is better for firms which use the ‘deferred income’ option, and it is also better in countries where a higher proportion of firms has received government grants. International differences and poor disclosure are detrimental to international comparisons, so we conclude that the policy choice should be removed from the accounting standard.     

Public services and charities: Accounting,accountability and governance at a time of change

This special issue is based on a selection of papers initially presented at the conference on ‘Public Services and Charities: Accounting, Accountability and Governance at a Time of Change’ (Centre for Not-for-profit and Public-sector Research, Queen's University Belfast, January 2017). ‘Public services and charities’ is a distinctive grouping that includes organisations that are not-for-profit and often have wide social and cultural goals that drive mission and actions. These organisations operate in a very fluid environment. Expectations of the public at large and of government are changing; economic pressures bear down on them particularly acutely; performance metrics and a push for marketisation reflect a spirit of the age; ‘business practices’ are frequently afforded a reputation of being ‘good’ and applicable in all settings; while news reporting and social media often amplify any perceived shortcomings. The papers included in this special issue present an opportunity to reflect on some of the key changes taking place with respect to accounting, accountability and governance in this setting. Such opportunities to reflect can support evaluation of the stated objectives of implemented and proposed changes, and also help to inform policy making within government and elsewhere. Key arguments made in these papers, and the overarching themes of this special issue, are explored in this editorial.     

Accounting decoupled: A case study of accounting regime change in a Malaysian company

Using a case study of accounting regime change in a Malaysian company, this paper analyses how an accounting regime was changed to overcome an instance of decoupling that management of the case company perceived to be problematic and, despite certain technological and managerial improvements, why the accounting regime yet remained decoupled from the control of core operations. Through an eclectic use of ANT, neo-institutionalism and political economy, it demonstrates that accounting remains decoupled from operational processes because of the particular manner in which accounting is constructed and enabled; the ostensive characteristics of accounting objects around which performativity of accounting is defined; and the organisational context, which involves certain ‘political imperfections’ that cannot be narrated within organisational apparatus of modernity. Accounting, being an apparatus of modernity, finds it difficult to codify such ‘imperfections’ and to offer an operational doctrine to govern the real business processes that are embedded within these ‘imperfections’. Hence, it remains decoupled from core operational activities but performs an important role of insulating ‘political imperfections’ with which business operates.     

Sustainability + Accounting Education: The Elephant in the Classroom

Despite the growing importance of sustainability and the sustainable development agenda, and despite the growing presence of papers recognising the critical interaction between sustainability and accounting and finance (and, indeed, with all social science), there has been a relatively muted response apparent within the accounting education literature itself. This relative lack of literature may well be unexpected but what is not unexpected is the difficulty that accounting and finance teachers have in developing such demanding new ideas with accounting and finance students in the classroom. Without in any sense gainsaying the considerable impediments to innovation, this explicitly polemical essay seeks to address a more fundamental difficulty: that of the way in which sustainability is approached and represented in both the literature and the classroom itself. The contention is that, unless sustainability is ‘keeping you awake at night’, you do not understand it. The paper seeks to support this contention and then offers an example of one undergraduate course that is explicitly designed to stop students sleeping peacefully.     

Is international accounting education delivering pedagogical value?

This paper examines whether universities are delivering pedagogical value to international accounting students commensurate with the costs of studying abroad. The paper uses survey and interview methods to explore the extent to which Chinese Learners (CLs) in an Australian postgraduate accounting subject have distinct learning needs. The paper then reviews universities’ responses to these needs, especially in light of funding and resource pressures. The paper reinforces findings that CLs have different learning approaches to local students, but not inferior or ‘shallow’ approaches. However, since CLs face distinctive financial and social pressures to achieve high results, their learning practices may be more sensitive to changes in teaching and assessment, such that cost constraints on educational resources might disproportionately affect their learning. This suggests that a paradoxical result of the funding pressures on many universities may be to encourage large international student cohorts while constraining available resources to meet their learning needs.     

Accounting and networks of corruption

This study examines the nature and role of accounting practices in a network of corruption in an influence-market setting. The study focuses on the Canadian government’s Sponsorship Program (1994–2003), a national unification scheme that saw approximately $50 million diverted into the bank accounts of political parties, program administrators, and their families, friends and business colleagues. Relying on the institutional sociology of Bourdieu, the study demonstrates the precise role of accounting practices in the organization of a corrupt network imbued with a specific telos and certain accounting tasks. The study illustrates how accounting is accomplished and by whom, and it shows how the ‘skillful use’ of accounting practices and social interactions around these practices together enable corruption. In so doing, the study builds on a growing body of work examining criminogenic networks and the contextual, collaborative and systemic uses of accounting in such networks.     

Faculty perspectives on international taxation topics

This paper presents perspectives of accounting faculty members on the relative importance of topics that should be presented in a one-semester graduate level international taxation course. Understanding of international taxation has become an increasingly critical part of the tax and accounting practices of the big four and other major public accounting firms as well as to U.S. multinational business firms. Therefore, college and universities may find it useful to provide at least some coverage of international taxation topics in a separate course or as part of other courses in their tax and accounting programs. If a separate course is offered, an important consideration of which topics should be covered in the course, since there are more topics than can be reasonably covered in one course. This paper analyzes the responses of members of the American Accounting Association's International Accounting Section to a survey of which topics should be included in a one-semester international tax course. Results are compared with those of prior studies to determine whether and the extent to which perspectives have changed over time and based on the type of survey respondent. Findings of this paper will offer guidance regarding topic selection to the accounting faculty members who are charged with developing an international taxation course. The findings may also be of interest to anyone concerned with international business in general and taxation in particular.     

Making Sense of Social Practice: Theoretical Pluralism in Public Sector Accounting Research: A Comment

This paper offers a comment on Jacobs (2012) published previously in this journal. Particular attention is paid to how theoretical pluralism may be defended on paradigmatic grounds whilst being mobilised as a vehicle of generating practice‐relevant insights. My critique of Jacobs focuses on his ambiguous positioning of multi‐paradigm research and the possibilities of developing some ‘indigenous’ accounting theory to render research relevant for practice. As an alternative mode of addressing these issues I propose a position based on critical realism and elaborate on how it may be used to stimulate and defend theoretical pluralism in public sector accounting research.