Accounting and Legal Implications of the Interposed Unit Trust Instrument

The application of a unit trust, within a complex group structure, to transact business and to hold other dependent operating instruments such as subordinate trusts, proprietary companies and investments in joint arrangements, raises issues touching the laws of trusts, income taxation and companies and exposes deficiencies in current accounting theory, practice and financial reporting. The use of unit trusts has off-balance sheet effects as both the trust itself and all subordinate instruments within its constellation may be effectively partitioned from those group results reported under traditional consolidation principles. The consequences of this partitioning distort the consolidation process and financial statements may then misrepresent a group's financial position. As yet, there is neither legislation nor accounting regulation providing direction in this complex area.     

Accounting,professions and regulation: Locating the sites of professionalization

This review paper argues that the institutions and sites of professionalization projects and regulatory processes matter. The institutions and locations where regulation takes place affect both the outcome of the regulatory process and the legitimacy of the rules and practices produced. Changes in regulatory processes affect opportunities for democratic control and legitimacy. A common position in the accounting literature is to examine both the process of professionalization and accounting and audit regulation within and around professional associations and related organizations, such as standard setting bodies and regulatory agencies. We argue that professional firms are increasingly important in professionalization and regulatory processes and have not received the attention that they warrant: an examination of the multi-national professional service firms (currently known as the Big 4) can enhance an understanding of professionalization and professional regulation. We suggest that these are important sites where accounting practices are themselves standardized and regulated, where accounting rules and standards are translated into practice, where professional identities are mediated, formed and transformed, and where important conceptions of personal, professional and corporate governance and management are transmitted.     

Accounting and the reduction of state-owned stock in China

In 2001, the Chinese government announced that it would reduce its ownership position in companies on the Shanghai and Shenzhen stock markets. As state-owned shares had previously not been permitted to be traded, this announcement was a significant market event in China. The announcement stated that the shares would be sold at a market-determined price, rather than at the much lower “net assets” price that investors had naively anticipated. The difference between these prices was considerable for virtually all listed companies. We examine how accounting information was used discursively to frame the situation, constructing the “problem” of how to reduce state ownership and simultaneously restricting the set of permissible solutions. We distinguish the ex ante and ex post uses of accounting calculations and vocabularies in the public discourse during this event, and examine how the discursive function of accounting in China is conditioned by bureaucracy and ideology in Chinese society.     

Accounting regulation and the professionalization process: an historical essay concerning the significance of P. H. Abbott

Evidence of the rising public status of an occupational group is believed to be Parliamentary recognition of its members’ suitability to perform certain specialized tasks. The English Bankruptcy Act of 1831, in identifying accountants as eligible for appointment to the newly created position of official assignee, may be seen as a significant milestone in the history of the accounting profession. Among the 18 appointments made by the Lord Chancellor, in 1831, was “the leading public accountant of the day", Peter Harris Abbott Ten years later, Abbott absconded to Brussels having perpetrated a defalcation of some 80,000 collected in his official capacity. This paper reveals the important role played by Abbott in alerting the British government to the potential contribution of public accountants in affairs of state, it explores the significance of his felonious action for the formulation of effective bankruptcy laws, and it shows that the early and fragile stages of the professionalization process can comfortably transcend the seriously anti-social behaviour of a leading participant.     

The influence of organisational and personal factors on the use of accounting information: An empirical study

The study empirically investigates the relationship between styles of using accounting information and selected job related traits and organisational factors. Three styles of using accounting information for operational control and subordinate evaluation are defined, measured and compared with a previous operational measure. Evidence on the relationship between the styles and functional background, goal, time and structural orientations, management style and traits, and hierarchical position is presented and discussed.     

Recent developments in the accounting profession in New Zealand: A case of deprofessionalization?

The international accounting literature is replete with references to the importance of professionalization of accounting in its development. While professionalization of accounting is progressing at a rapid rate in many developing countries, the recent developments in some western industrialized countries seem to suggest a different trend. This paper proposes to investigate these developments and provide a critical analysis focusing on one western industrialized country (i.e., New Zealand).Evidence is provided in the paper to show that (a) the boundaries between accountancy and other occupations are becoming increasingly blurred; (b) the dominance of accounting controls in organizations is being challenged; (c) the profession does not control access to accounting knowledge; and (d) the profession is unable to prevent government intervention in the areas of work standards, and bureaucratic controls in the work place. The paper argues that the recent changes in the accounting profession in New Zealand suggest a trend towards deprofessionalization.     

Substance over form in auditing and the auditor's position of public trust

Auditors are placed by society in a special position of public trust. In their public role auditors are required to base their opinions on the substance rather than the form of the transactions underlying accounting numbers. An argument using the economics of trust (implicit contract theory) is constructed to show why it is required by society that auditors opine on substance. Forces exist, however, that deflect the auditor from fulfilling his or her public role into a “rule-dominated” practice in which substance is neglected. An empirical study confirms that auditors neglect substance and perceive little exposure to litigation in doing so. It is concluded that if auditors continue on their current path, their legitimacy before society will eventually erode to nothing.     

Accounting and environmentalism: An exploration of the challenge of gently accounting for accountability,transparency and sustainability

Concern for the natural environment has not occupied a prominent role in accounting scholarship and practice. This paper attempts to redress this omission by investigating the implications for accounting of placing the environment at the centre of the analysis. The paper introduces the principles of this “deep green” position and explores how accounting might articulate them. Whilst there may be no place for what we currently consider to be conventional financial accounting in any “green utopia” the paper does not attempt to operationalise, within a non-green world, certain of the principles of the green position. Emphasis is placed on an accounting's potential for contribution to accountability and transparency in participative democracy, the potential for non-financial accounts of the biosphere and, perhaps most contentiously, the use of current accounting techniques for the operationalisation of an accounting for sustainability.     

Educational standards for management accountants: A critical need

The last five years have seen the development of a trend that may be characterized as “the professionalization of accounting education”. One major element of this movement has been the development of a formal recommended curriculum for students planning a career in public accounting. However, a similar proposed curriculum for management accounting students has not resulted. Although the management accounting profession has made great advances during the past few years, a single formal recommended curriculum has not been developed.This article expresses concern over the lack of such a curriculum, and urges the management accounting arm of the profession to join in developing a single recommended academic curriculum for management accountants.     

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.     

Aboriginal and Torres Strait Islander People in the Accounting Profession – An Exploratory Study

The aim of this article is to explore the role that accounting skills and accounting qualifications may play in entering fields that have been virtually closed to Aboriginal and Torres Strait Islander (ATSI) 1 people. It is acknowledged in the literature that accounting processes and accountants have historically had a domineering and detrimental impact on marginalised groups, such as ATSI peoples. However, we propose an alternative viewpoint using a Bourdieun perspective and theorise that accounting skills and accounting qualifications (capital) can open doors to powerful organisations and institutions (fields). As this is an exploratory study, we have limited our analysis to one key aspect of the Bourdieun framework, namely that of field. To that end, we examine accounting and other organisations that have traditionally closed their doors to marginalised groups in society. Interviews were conducted with ATSI people who have successfully gained entry into the field of the accounting profession, in an effort to understand the experiences and barriers they faced and to investigate the role that accounting skills plays in enabling ATSI people access to fields and decision‐making positions that have traditionally been inaccessible to them.     

ATTRACTING AND RETAINING MAORI STUDENTS IN ACCOUNTING: ISSUES,EXPERIENCES AND WAYS FORWARD

The literature of social and educational research reflects the significance that issues of culture and ethnicity have gained in such research. This is evident, for example, in concerns to analyse and redesign social practices and to elaborate a critique of dominant Western institutions. In the research literature upon the accounting focus, evidence of such concerns has been comparatively scarce. While some research has been done@8ifor example, researchers have pointed to the Eurocentric character of accounting and critically analysed ethnic minority experiences of accountancy@8ithere is much more to do. Particularly scarce in the accounting literature have been studies concerned to focus upon accounting from an indigenous cultural perspective or to promote multicultural accounting education. Such a silence is of significance in the light of increasing worldwide concerns to learn from and to protect the cultures of indigenous peoples and to question the universal validity of Western practices, notably such as those of Eurocentric education. In this paper we focus upon Maori, the indigenous people of Aotearoa New Zealand, and critically assess and explore their participation in and experiences of accounting education. We concentrate upon university accounting education which is central to the process of gaining admission into the accountancy profession of Aotearoa New Zealand. We provide a historical and contextual analysis which elaborates upon the oppression and marginalisation of Maori people. The study reflects our concern that, in inquiring into why particular ethnic groups, including indigenous peoples, are under represented and lack influence in particular social activities and occupations, we need to give consideration to the role of cultural as well as socioeconomic factors. And in this respect we need to critically analyse the very institutions and practices of Western accountancy and Western accounting education as forms of insensitive cultural imperialism. These forms can change rather than the culture of peoples. For us, increasing the participation of Maori in accounting education and accounting practice and changing the character of these practices so that they are more reflective of Maori indigenous culture are two dimensions of the struggle for change which can be mutually reinforcing. We are supportive of such change and seek to bring this about in the Eurocentric institutions of Aotearoa New Zealand. Our contention is that a deeper critical analysis of issues of ethnicity in Western society can help to inform a critique of Eurocentric practices and institutions including in the sphere of accounting. In brief, we explore a range of interconnected themes: the complex character of the marginalisation and oppression of Maori; focusing in, the position respecting accounting education and the very practice of accounting; how this relates to ways forward and connects up with wider issues.     

人类会计思想演进的历史起点

本文阐明了人类会计思想演进的主体脉络。在人类会计思想"第一历史起点"的支配下,最初的原始计量记录方法用于采集经济时代越冬食品的储备与分配管理,以使人类摆脱生存危机。"第二历史起点"由私有财产制度的形成而引发。在财产社会与产权社会里,产权会计体现在古代、近代乃至现代各个历史时期越来越强的基础性控制作用,保障了产权社会由低级向高级阶段发展的社会秩序。进入20世纪后,人类在发展产权经济中的自由放纵造成了由"增长极限"与生态环境急剧恶化而引起的可持续发展危机。这一重大变化促使"第三历史起点"的形成。未来会计改革将围绕由以"产权为本"向以"人权为本"的思想转变展开,会计将在参与解决全球社会可持续发展危机中发挥基础性控制作用。     

Scientific Utopia and accounting

This paper approaches the question of the role of accounting in society by studying utopian social literature. Particular consideration is given to the work of Proudhon who proposed that accounting should be regarded as a means of solving the most important of all social problems, i.e. those of economy and justice. In spite of the fact that Proudhon presented accounting as a social scientific theory and technique for solving the problem of equality in society, the paper argues that such a view reflects a predominantly utopian vision of the world. Though Proudhon rightly pointed out the normative character of accounting, its juridical value and its capacity to reflect economic life, he failed to detach himself from the belief that there could exist a universal means of economic control and planning leading to a state of complete justice in society. However, the Proudhonian association between accounting and justice is not irrelevant in the modern debate on the role of accounting in society. If accounting has not taken the form envisaged by Proudhon it has at least evolved towards the similar objective of determining what is true in the context of economy. If only for this reason, Proudhon's general theory of accounting is worthy of attention.     

武警部队会计的发展过程与展望

武警部队会计作为一种特殊会计种类,其产生发展与国家经济和社会全面发展密切相关。通过回顾26年来武警部队会计的发展过程,分析其前进的推动力量,可以为持续进行武警部队会计改革提供利器。武警会计制度、武警会计机构和会计人员、武警会计信息化、武警会计理论构成了武警会计的整体框架,这正是所要分析的对象。     

The capital budgeting process and the energy trilemma - A strategic conduct analysis

This paper examines capital budgeting and its role in the ‘energy trilemma’. The key focus is on the role of knowledgeable agency in the analysis of strategic conduct. In particular, this study demonstrates how accounting tools can be used by executive managers, who, whilst dominant in their own organisations, are themselves subordinate to government in the United Kingdom and at the European level. The strategic conduct of actors is examined in a narrative, theorised case study setting spanning an 11-year period from 2006 to 2017. The principal contribution to knowledge from this study is the extent to which strategic investment accounting has played a role in changing regulatory and government policy in a privatised industry. Government and regulators were forced to take the generators' concerns seriously, because the generators (based on knowledge derived from capital budgets) restricted their capital expenditure rather than mobilising their resources. The generators highlighted that not only was this a problem of environmental sustainability and price for consumers, but also one of long-term supply. They argued that the government had to address all aspects of the trilemma when creating policy.     

Social accounting's emancipatory potential: A Gramscian critique

At the heart of the social accounting project lies a radical and emancipatory intent. Yet social accounting practice, in the form of corporate self reporting, has systematically failed to open up organisations to substantive critique. Rather than rendering transparent the contradictions within capitalism, corporate social accounting primarily obfuscates these. Through corporate social accounting business expresses Moral and Intellectual Leadership, further entrenching its hegemony. This paper offers a theoretical explanation for why this is the case, drawing upon the work of Antonio Gramsci. Corporate social accounting serves a regressive role because it is closely tied to the economic base of society. An emancipatory social accounting would operate relatively autonomously from the economic base and actively expose the contradictions of the current hegemony. Such an accounting could be, indeed is, practiced by civil society. This paper goes further than merely critiquing corporate social accounting and draws attention to some of the different types of social accounting that are practiced by civil society organisations. In drawing attention to these civil society accounts the paper suggests that the social accounting project's emancipatory intent can still be realised although this would require a reassessment of the faith that has hitherto been placed in the corporation as an emancipatory change agent.     

Creating Early Success in Financial Accounting: Improving Performance on Adjusting Journal Entries*

Adjusting journal entries constitute a necessary component of accrual basis accounting and are critical to the accuracy of financial statements. However, accounting students often struggle to comprehend these accounting entries, which is a concern given that failure to understand early topics in accounting courses has been found to impact course performance and selection of undergraduate major. Perceiving accounting as a language, we utilize psycholinguistic theory to understand how an instructor may improve coherence of students’ mental structures of accounting problems. We conduct an experiment to investigate the extent to which a simple instructor intervention, requiring that the initial deferral transaction be recorded, is able to improve student performance on the subsequent deferral adjustments, and whether this improvement is consistent across problem sets that differ in task difficulty. Consistent with our theoretical prediction, we find that this intervention results in improved performance. The beneficial effect of the intervention is found to differ across problem‐set task difficulty. Implications for accounting education are discussed.     

Costing schizophrenia

This article looks at a particular subset of mental illness in Australia: schizophrenia, and reflects on how the direct costs that fall within the parametres of the health budget are privileged (inscribed), compared to how indirect costs that fall outside this boundary fail to be inscribed appropriately. This article concludes that, from a social accounting point of view, this boundary is arbitrary and an example of poor accounting.     

Epistemic commitment and cognitive disunity toward fair-value accounting

This paper critically explores knowledge/professionalization relationships in a jurisdictional context characterized by shifting standards of practice. Focusing on the growing movement toward fair value within accounting standards, we examine practitioners' reactions to the growing compulsory application of fair-value accounting standards. To make sense of these reactions, we introduce the notion of epistemic commitment, that is to say one's degree of allegiance to a given knowledge template. Utilizing 27 interviews with Canadian experienced accountants, we rely on epistemic commitment to analyze the extent of variability in practitioners' reactions to the standardization movement toward fair-value accounting. Our analysis demonstrates an important level of variability in practitioners' epistemic commitment toward fair-value accounting, highlighting a lack of cognitive unity in the field. Our findings point to other important professionalization issues: practitioners' inclinations to refer to profitability issues when reflecting on the appropriateness of standards; practitioners' conception of accounting as an objective technology; practitioners' hesitations in voicing deep-level concerns over implementation ambiguities and lack of professional cognitive authority. Overall, our study raises doubts about the professional status of accountancy.