Reviewed by Bob R. C. J. Van den Brand Tilburg University, The Netherlands
The Development of Accounting in an International Context, a tribute to R.H. Parker and the second book in the Routledge International Studies in Business History, contains a collection of interesting papers including a foreword by Sir Bryan Carsberg, an introductory chapter detailing the book’s contents by editors Cooke and Nobes, and ten chapters of international accounting history. A biographical sketch of Robert Henry Parker and a discussion of his books and articles are also included in the introductory chapter.
Chapter two contains Basil Yamey’s notable contribution on the diversity of bookkeeping practices. Yamey begins by discussing “bookkeeping without written records.” Later, in the 1490s, some attempts were made to regulate bookkeeping. The first, ordered in 1491 by Ferdinand and Isabella, made little sense because it did not stipulate which books were to be kept. Conversely, the best known attempt to legislate business accounts was the French Code of Commerce of 1673, a project associated with the names of Colbert and Savary. The Code of 1673 served as a basis for the Code de Napoleon (1807) from which many 19th century European commercial codes originated. Yamey attributes the causes of diversity in book-keeping practices to training of the young abroad, pressures of their other work, shortages of support staff, and incompetence.
In chapter three, Tom Lee points out the influence of the individual on professionalization by presenting the case of Ri-chard Brown and the Society of Accountants in Edinburgh. This paper demonstrates the validity of the profesionalization proposition.
In chapter four, Edwards, Carnegie, and Cauberg discuss the backgrounds of the founders of the Incorporated Institute of Accountants in Victoria, Australia. Detailed information such as the founders’ occupation, as well as those of their fathers and fathers-in-law, and their religious affiliations is provided.
Chapter five offers practitioner perspectives on the per-sonal conduct of accountants. Lee D. Parker points out the conventional expectations of the accountant’s behavior during the first half of the 20th century — honesty, integerity, independence, leadership, efficiency, and swank.
In chapter six, Richard D. Morris discusses the origins of the no-liability company, an organizational form unique to Australia and New Zealand. The no-liability company in the Colony Victoria evolved from the British Cost Book Mining Company (BCBMC) located in Devon and Cornwall, U.K. This paper tests Parker’s theory on 19th century accounting regulation in the U.K., a practice associated with issues of monopolistic powers, state-granted privileges, and financial safety. Morris concludes that Parker’s concerns, coupled with Crouch’s idea of establishing and enforcing the law, explain the existence of BCBMC. Athough Parker’s explanation is not complete, neither agency theory, investor theory, nor capture theory provides an explanation for the popularity of the no-liability company in Victoria and New South Wales during the gold rush (1850-1870).
Chapter seven offers another view of the deprival value approach to depreciation. Philip W. Bell and Ken Peasnell have four goals: to draw a new generation’s attention to the deprival value depreciation model, to clarify certain difficult issues, to highlight interesting facts of deprival value, and to explain why the deprival value approach is relevant to financial reporting.
In chapter eight, David Tweedie and Geoffrey Whittington examine the evolution and decline of the current cost accounting revolution in the U.K., U.S., Australasia, Canada, The Netherlands, and Latin America. They distinguish between constant purchasing power and current cost accounting, as well as provide information on accounting from perspectives other than historical cost.
In chapter nine, Stephen A. Zeff deals with the U.S. lobby on employee stock options. In the nineties, the media drew attention to long-term incentive schemes and stock option plans offered to key executives. Zeff describes how one U.S. senator organized a hearing and pressed the FASB and the SEC for regulations concerning employee stock options. Zeff describes the complete process of lobbying as well as Senate and House of Representatives pressure on the FASB.
Chapter ten authors Sidney Gray and Clare B. Roberts discuss foreign company listings on the London Stock Exchange, focusing primarly on listing patterns and influential factors. They give an overview of worldwide company listings at the end of 1994 and analyze the foreign listings on the London Stock Exchange by country. Listing patterns are split into temporal, geographical, and industrial patterns. The appendix provides an overview of foreign nonfinancial company listings on the London Stock Exchange between 1937 and 1994.
In the final chapter, R.S. Olusegun Wallace describes the development of accounting research in the U.K. In this chapter, subtitled “The Need to put ‘Accounting’ back into Accounting Research,” the author interprets the research shift away from the core content of accounting and gives his ideas on good, published accounting research.
I found this book interesting, exciting, and very readable. The most charming aspect was the variety of topics in interna-tional accounting history, and I accord the book my highest recommondation. It is worth remembering Parker’s words [1971] that modern accounting is not the invention of any one country.
REFERENCES
Parker R. H. (1971), “Some International Aspect of Accounting,” Journal of Business Finance, Vol. 3, No. 4: 29-36.
