Reviewed by Dale L. Flesher University of Mississippi
There may be some question in readers’ minds as to why an accounting theory textbook is being reviewed in a history journal. Actually, the answer is quite simple; this particular theory book has substantial historical content. As with many accounting theory books, history is a major part of chapter 1 as the author included discussions of such factors as the industrial revolution, the nineteenth century railroads, the growth of the accounting profession, the early role of income tax laws and the impact of World Wars I and II. Managerial accounting is not neglected as the development of that field of study is also highlighted in the opening chapter.
Chapter 2 is even more historically oriented than the first, as the early history of accounting is explored. In addition to the contributions of Pacioli, other topics covered include the early Byzantine and Babylonian periods, the role of the English Companies Acts and the theories of Sombart. Early contributions of various European accounting theorists are also highlighted. Indeed, the author’s penchant for international accounting shows through in his selection of accounting history topics.
Unlike most accounting theory textbooks, this book does not limit the inclusion of accounting history to only the opening chapters. In fact, virtually every chapter includes a historical discussion of the particular topic being covered. For instance, inflation accounting is discussed from the perspective of Henry Sweeney, the balance sheet chapter begins with the contributions of Charles Sprague, and the funds statement material starts in the 1860’s.
The author obviously believes that the key to understanding ac-counting theory is based on an ability to understand why changes in accounting occur. Accounting students who only understand the status quo with respect to accounting theory will be limited when current theory changes. However, the person who can understand why theory developed in the past will be able to extrapolate that understanding to cover future changes. Most’s text gives students the historical why behind various aspects of accounting theory.
This reviewer has not attempted to evaluate all of the advantages and disadvantages of Accounting Theory (second edition). Instead, the use of accounting history to teach theory has been emphasized. The Most book fulfills the desire of many historians who want accounting history to be included in an accounting theory textbook.
