Special issue on international accounting history

As firms, markets and regulation becomes global in scope, we need to understand cultures other than our own and the factors that shape the pattern of transnational development. This special issue of Accounting and Business Research includes examples of work in international accounting history that can provide insights into the international development of accounting practice and institutions. The papers include an examination of the linkages between the international business and political science literatures and accounting history (Richardson and MacDonald), a genealogy of the Niven family spanning two continents (Lee), an examination of the origins of operational auditing (Flesher and Zareski), and a history of voluntary harmonisation efforts among Nordic countries (Aisbitt).     

Linking international business theory to accounting history: implications of the international evolution of the state and the firm for accounting history research

Accounting is an interdisciplinary subject. We routinely draw insights and models from the base disciplines (e.g. economics, psychology etc.) as a starting point for research on accounting issues. As accounting researchers, and accounting historians in particular, explore the international dimensions of accounting it is appropriate, therefore, to look to the literature on international relations for insights. This paper provides examples of how we could use the literature on the nation-state and international enterprises to frame questions about international accounting history.     

Accounts of change: 30 years of historical accounting research

Over the past three decades, a desire to understand the processes of change within accounting, and the contribution made by accounting to broader societal and organizational change, has stimulated a substantial body of historical research in accounting. Labelled as the “new accounting history”, this diverse collection of methodological approaches addressing a wide range of problems has made possible the posing of new questions about accounting’s past. The understanding of what counts as accounting has broadened, a greater awareness of how accounting is intertwined in the social has emerged, voices from below have been allowed to speak, while accounting has been seen to be implicated in wider arenas, with networks of practices, principles and people constituting varieties of “accounting constellations”. The paper reviews the central contribution of Accounting, Organizations and Society to the emergence of the new accounting history, and suggests some directions in which this may develop in the future.     

Accounting history and theorising about organisations

Historical accounting research has a substantial track record of using a variety of theoretical insights to better understand how and why accounting has contributed to, and been affected by, organisational change and development. The article outlines the emergence of a range of theories that have been employed by accounting historians, against the background of the development of accounting history as a significant disciplinary field within accounting research. From its investigation of accounting historians’ approaches to studying accounting as a central practice in organisational processes, it reveals how historical accounting studies have been informed by and contributed to theorisation of such organisational phenomena. The article concludes that theory is largely used to provide conceptual frameworks for historical narratives, with historical accounting research often focused on case studies of single organisations or organisational settings. However, theory has also been mobilised at more general levels, to provide meta-narratives of the rise of capitalism and the emergence of managerialism. Far from treating accounting as technical practice, accounting historians are revealed as conceiving accounting as social practice, impacting both human behaviour and organisational and social functioning and development. As social practice, accounting emerges deeply embedded and pervasive in organisations and societies.     

The archeology of accounting systems

Accounting systems change over time. However relatively little is known of the preconditions for such change, the process of change or its organisational consequences. Existing perspectives on accounting change are reviewed and evaluated in this article. Thereafter three examples of accounting change are discussed. Based on these cases, a number of theoretical issues relating to the understanding of the process of accounting change are examined. Emphasis is placed on the diversity of factors implicated in accounting change, the constitutive as well as reflective roles of accounting and the ways in which accounting change can shift the preconditions for subsequent organisational changes.     

Social and environmental accounting,organisational change and management accounting: A processual view

Consistent with calls for in-depth studies of social and environmental accounting and reporting (SEAR) intervention (Bebbington, 2007, Fraser, 2012, Contrafatto, 2012), our paper focuses on the interrelationship between organisational change and SEAR practices, as well as the involvement of management accounting in such organisational dynamics. Drawing insight from both Laughlin (1991) and Burns and Scapens’ (2000) theoretical frameworks, we explore the processes of change through which SEAR practices become elevated to strategising status, in the context of broader organisational and extra-organisational developments, but we also illuminate how institutionalised assumptions of profit-seeking limit the extent to which broader sustainability concerns become infused into day-to-day business practice. Our paper highlights the importance of management accounting in facilitating and shaping the cumulative path of SEAR practices (and sustainability more generally); however, we also heed caution against uncritical reliance upon conventional management accounting tools. The following paper extends our understanding of SEAR practices as cumulative process over time, an awareness of the potential limits to such developments in profit-seeking organisations, and stresses a need to be circumspect when involving management accounting.     

The most influential journals in academic accounting

In this article we summarize the findings of articles that have ranked academic accounting journals, as well as articles that provide other bases for considering journal quality. Results indicate that five journals—Accounting, Organizations and Society, Contemporary Accounting Research, Journal of Accounting and Economics, Journal of Accounting Research, and The Accounting Review—rank consistently as the top journals in the field. However, these five journals differ substantially as to the numbers of articles they publish overall as well as the proportions of articles that are related to the various specialty areas of accounting. Further, the relative proportions of articles by area do not correspond to the numbers of individuals working in the specialty areas. Financial accounting articles appear in disproportionately high numbers for all journals except Accounting, Organizations and Society, whereas management accounting articles appear in disproportionately low numbers for all journals except Accounting, Organizations and Society. In all journals, systems and tax articles also appear to be disproportionately low vis-à-vis the numbers of individuals working in these areas. Auditing receives fairly even exposure across journals and vis-à-vis individuals in the area, except in the Journal of Accounting and Economics.     

Organisational change, outsourcing and the impact on management accounting

New empirical evidence is presented on organisational change, outsourcing and the impact on management accounting in three types of organisations: private sector companies, the National Health Service and Local Authorities. Spearman rank correlations are used to examine three propositions: that (i) change in organisational form exists and may be related to an increased use of outsourcing or subcontracting; (ii) outsourcing is expected to improve organisational flexibility and/or the service of an activity, to lead to cost savings, or to allow the organisation to focus more clearly on its core business; and (iii) outsourcing promotes change in management accounting. Statistical support is found for each of our three propositions. This is further supported by reference to three illustrative case studies. Overall, we conclude that organisational change, as effected by the use of outsourcing, is related to specific changes in the organisations' management accounting systems.     

(No) Limits to Anglo-American accounting? Reconstructing the history of the International Accounting Standards Committee: A review article

The development of the current International Accounting Standards Board (IASB) from the earlier International Accounting Standards Committee (IASC) provides insight into many issues of international financial reporting, among them the characteristics of international accounting standards themselves. This article reviews Camfferman and Zeff’s [Camfferman, K., & Zeff, S. A. (2007). Financial reporting and global capital markets. A history of the international accounting standards committee 1973–2000. Oxford: Oxford University Press] volume on the organizational development of the IASC and contextualizes it in the broader literature of cross-border standardization in accounting. While having produced a seminal piece, the authors take a clear Anglo-American perspective. The downsides are insufficiencies regarding a simplistic understanding of experts and expertise, a neglect of the role of auditing firms, and only an imbalanced integration of different stakeholders.     

Development of accounting in Iran

The main purpose of this paper is to show the origin, growth and practice of accounting in Iran plus analysis of influential factors such as financial markets, tax policies, privatization, membership in the World Trade Organization, foreign investment, and legal systems. Documents of ancient Iran show that in 550 B.C. (Achaemenid era), all records of public revenues and costs were kept soundly and with remarkable accuracy. These documents display the relentless progress and development of accounting in Iran up until now (pre-Islamic era, post-Islamic era, and contemporary era). During the past two decades, various measures have been adopted to promote and advance accounting in Iran via harmonizing the domestic accounting practices with International norms and standards. Although Iran has employed International Accounting Standards as the basis for developing its National Accounting Standards, there are still some differences between Iranian and international standards, and there are some certain International Accounting Standards that are not applicable in Iran. A host of endemic factors, such as existing laws and rules, religious beliefs, culture, economic and political conditions, have influenced the National Accounting Standards setting processes.     

Getting management accounting off the ground: post-colonial neoliberalism in healthcare budgets

Taking Modell's [(2014) The societal relevance of management accounting: an introduction to the special issue. Accounting and Business Research, 44 (2), 83–103] ‘societal relevance of management accounting’ agenda forward, and based on a cost accounting initiative in a Sri Lankan hospital, this paper examines how management accounting is implicated in societal relevance. It reports on a post-colonial neoliberal state's use of cost-saving experiments and the resultant emancipation of the individuals involved. It conducts a bottom-up analysis, from micro events in the hospital to policymaking at the level of the Provincial Council. This analysis suggests that cost accounting acts as a mediating instrument: it begins to loosen the old Keynesian post-colonial bureaucratic budget confinements, creates a social space for individuals to consider cost-saving experiments, and addresses wider policy concerns about hospital resource management. The story is illuminated by Gilles Deleuze's and Zigmund Bauman's ideas on post-panoptic societies: old confinements are being problematised and new flexible, ‘liquid’ spaces created, in which individuals are emancipated in terms of their ability to influence resource management within and beyond the organisational constituency.     

A history of Japanese accounting reforms as a microfoundation of the democratic socio-economy: Accountics Part II

Immediately after WWII, unlike statisticians’ reforms, accountants failed to establish the Cabinet-controlled Accounting Committee and Accounting Law which were originally envisaged as the key to successful “Accountics”: the management of the socio-economy through standardized accounting (Part I). Nevertheless, July 1948 is regarded as the beginning of Japan’s accounting revolution, as academic accountants accomplished a series of fundamental reforms. Part II examines the process through which micro financial systems were swiftly developed as a microfoundation of the new “democratic” socio-economy. First, academics implemented new accounting for large companies in order to dilute the Zaibatsu- and Imperial-centred regime; followed by censored and standardized accounting education for SMEs and the public in order to change the public perception of the roles of businesses in society. The foci of examination are the political manoeuvres of reformers, the consequences of new accounting, and pragmatic philosophy of the academics in action. Towards the end of the paper, some implications of this history are considered in relation to the impacts of the IAS/IFRS on today’s international socio-economy.     

Expanding your accounting classroom with digital video technology

In the past, many activities of accounting professors were restricted or confined by their classroom walls. Bringing in guest speakers, taking students on field trips and teaching students off-campus (either locally or globally) were extraordinary efforts that required significant organization. Today, numerous technological advancements in communication infrastructure, equipment and online tools greatly facilitate such initiatives. Outside experts can now visit the classroom, students can explore or collaborate in distant places and professors can extend the geographical reach of their lessons simply via the means of digital video technology. Based on our 2010 Conference on Teaching and Learning in Accounting (CTLA) Master Class, we share our experiences in exploring the use of digital video in teaching accounting and explain how numerous accounting professors are taking advantage of the capabilities afforded by digital video technologies. Online video clips, student video projects, and online video lecture recordings hold great promise for accounting education. We have created a website that complements and demonstrates the teaching ideas presented in this article and that facilitates video integration into accounting courses. We discuss the pedagogical benefits of using video, including those from general education and accounting literature. The article concludes with suggestions for how accounting faculty can keep current with video technology, areas for future accounting research and a call to action for accounting educators. Our work with digital video technology has led to the 2011 American Accounting Association (AAA) Innovation in Accounting Education Award as well as the 2010 Canadian Academic Accounting Association (CAAA) Howard Teall Innovation in Accounting Education Award.     

Management control in an area of the NCB: Rationales of accounting practices in a public enterprise

This paper explores the rationales offered by participants for the accounting and management control practices in which they are involved. An analysis of these rationales emphasis four characteristics of current practices. Firstly, financial planning and control systems do not appear to be a dominant mode of organisational control for the organisation investigated, physical production planning appearing to be more important. Secondly, the parts of the whole organisation appear to be only loosely coupled, thereby insulating the various parts from each other, and from pressures for change. Thirdly, in such a context, accounting and information generally may be managed either (or both) to enhance ambiguity or to provide legitimacy in (and about) the organisation. The paper concludes, fourthly, by noting the pressures for change which appear to operate through the finance function, thereby enhancing that function's organisational role. The observations and analysis of the paper are based on an in-depth observational study of an Area (i.e. geographical division) of the National Coal Board, in the U.K., and on a detailed study of that organisation's history and environment.     

The societal relevance of management accounting: An introduction to the special issue

This essay introduces the special issue of Accounting and Business Research exploring the societal relevance of management accounting and locates the individual contributions within this research agenda. In contrast to prevailing, managerialist conceptions of relevance, the discussion is guided by an over-riding ambition to turn management accounting research “inside out” to examine the effects of management accounting practices on a broader range of constituencies and interests in society and the formation of such practices beyond individual organisations. I start by charting the development of extant and emerging debates on the relevance of management accounting research and practice and then outline some pertinent research themes worthy of further exploration. In doing so, I pay particular attention to emerging research illustrating how management accounting becomes implicated in the external regulation and governance of organisations, the shaping of markets and the wider, societal consequences of such processes. I also discuss some theoretical and methodological implications of exploring such topics.     

Extractive industries accounting and economic consequences: Past,present and future

Accounting for the extractive industries has been a contested issue for decades as a result of a choice of different methods of costing available and the economic impacts of these methods on companies’ financial results. When the International Accounting Standards Board (IASB) embarked on its extractive industries project in 1998, it attempted to create uniform accounting practices. An archival study of constituent responses to the IASB's Issues Paper revealed that the economic consequences argument was relied upon again to argue for retaining choice. The IASB's international accounting standard, IFRS 6, issued in 2004, once again permitted choice between methods, illustrating the effectiveness of the economic consequences argument in perpetuating past practice.     

Management accounting as practice

In this paper we outline a distinctive practice theory approach to considering the role of management accounting in the constitution of organizations. Building on [Schatzki, T.R. (2002). The site of the social: a philosophical account of the constitution of social life and change. University Park, PA: Pennsylvania State University Press] notion of arrays of activity we emphasise the ways in which organisational members actively reconstitute their management control systems by drawing on them as a shared resource. By tracing the skilful practices through which social actors in a restaurant chain understand and mobilise accounting to contribute in specific ways to what they regard as the objectives of their organisational units, we develop a notion of situated functionality. Situating the interrelationships between technical and interpretive accounting processes in the wider field of organisational practices we elaborate the ways in which management control systems as structures of intentionality both shape and are shaped by shared norms and understandings.     

Trust for accounting and accounting for trust

This paper combines insights from the sociology of knowledge and the emerging practice-based literature on learning and knowing to extend the institutional framework of accounting change developed by Burns and Scapens [Burns, J., Scapens, R.W., 2000. Conceptualising management accounting change: an institutional framework. Manage. Acc. Res., 11, 3–25]. In particular, it explores how management accounting systems (MAS) can be implicated in processes of learning and culture change, and used to identify ‘trustworthy’ solutions in the face of organisational crises. A case study of an Italian company, which was subject to massive change following its acquisition by General Electric, is used to discuss how, when crises arise and organisation members find themselves under intense pressure for change, their rationales and routinised behaviour, which are driven by the existing knowledge and cultural assumptions, are challenged. The case illustrates how MAS can act as sources of trust for the processes of change – i.e., accounting for trust; while at the same time being socially constructed objects of trust – i.e., trust for accounting. Drawing on the concept of personal trust and the notion of roles as access points to organisational (expert) systems, the paper discusses how, in this case, finance experts facilitated the acceptance and progressive sharing of new rationales and routines. Clearly, this does not guarantee that change will occur or occur in some ‘desired’ direction in other cases, but it increases the possibility of replacing trust in the predictability of routines with feelings of trust for change.     

Testing the limits of structuration theory in accounting research

In 1985 I published a paper in Accounting Organizations and Society with Bob Scapens titled Accounting Systems and Systems of Accountability; understanding accounting practices in their organisational contexts. The paper suggested the potential usefulness of Anthony Giddens’ structuration theory for efforts to understand accounting in its organisational contexts. Rather than engage in a further review of the use of structuration theory in accounting, this paper sets out to test our original proposition as to the usefulness of Giddens ideas for accounting research. I explore three points of possible criticism in the paper. That structuration theory does not take the ‘agency’ of accounting sufficiently seriously; that Foucault and Lacan allow us to get much closer to the ways in which accounting information works back upon human subjects; and that Giddens and accounting share a lack of ethics.     

Conscious practices and purposive action: A qualitative study of accounting and social change

The paper develops a methodology of accounting practices as conscious representations of purposive action, which seeks to build broader insights from qualitative research into the social aspects of accounting change, and how these relate to wider organisational and social transformations. The paper constructs the methodology by linking together and developing interpretive and labour process perspectives through an analysis of ethnographic material drawn from an extensive field study of the empresas recuperadas – cooperatives formed by workers during economic and political crisis in Argentina in 2001. The analysis traces the involvement of accounting practices within collaborative dynamics that transformed a hierarchical organisational structure, embedded within accountability systems that manifest prevailing notions of identity and collectivism, into a decentralised organisation that established relations with grass roots societal groups informed by new purposes and values. This perspective develops into a concept of the differentiated and contradictory social aspects of profitability, and highlights a range of potential relations between representations and realities. The final part conceptualises the collective and nuanced conditions through which accounting practices represented individual needs more effectively. The paper concludes by highlighting how its methodology and findings help to understand the conscious, collaborative involvement of accounting practices within social life.