Reviewed by Richard Vangermeersch University of Rhode Island
Spoken words at a conference are, most times, quickly forgotten by listeners, no matter how prestigious the speakers and how carefully the listeners take notes. In order to be a permanent part of the literature, these spoken words need to be preserved. A video of a conference provides the viewer with a portrayal of the speakers, their asides, and their body language, and, hence, provides a better view of the human aspects of the issues involved. The joint efforts of The Academy of Accounting Historians and the College of Business of The Ohio State University have provided the best of all possible worlds. This book is an excellently transcribed and edited version of the spoken words of some of the most significant accounting academics and practitioners of the second half of the twentieth century. Interested persons can borrow a video of the conference either from The Academy of from Ohio State. This book and the video can be used as a package for many purposes.
The Accounting Hall of Fame Conference had three sessions, in which many of the panelists attended all three sessions. This allowed for interplay between the panelists at the sessions. There also was a limited audience at all three sessions but these attendees spoke and interacted with the panelists. Hence, the conference and its transcribed record attained a level of continuity throughout the sessions. This was helped by the moderators, who kept the panelists focused on such a common topic as “What were the highs and lows of the period from 19651990?
The first panel was comprised of academics and was moderated by Professor Steven A. Zeff of Rice University. The panelists were all members of The Accounting Hall of Fame, which is housed at Ohio State. They were: Robert Anthony; Norton Bedford; Sidney Davidson; Charles T. Horngren; Maurice Moonitz; and David Solomons. Yuji Ijiri spoke briefly at the end of the Conference. These men truly need no further introduction to those interested in accounting history.
Four examples of “highs” were: the much higher level of research tools used by accounting research; the development of management accounting; the much better reception of accounting professors at universities; and the case method. Four examples of “lows” were: the lack of knowledge about institutions by accounting professors; the benign neglect of traditional topics in accounting; the lack of debate on important issues; and the failure to have a dialogue with FASB. Since Dennis Beresford, FASB Chairman, was a special guest at the Conference, and an active participant in the three sessions, there definitely was a dialogue with FASB at this Conference.
The second panel was comprised of representatives from industry. As most accounting academics have more than adequate exposure to their colleagues and to public accountants, this panel allowed for a forum much needed by accounting academics. The moderator was Professor James Don Edwards of the University of Georgia. The panelists were: Eugene Flegm, General Motors; Gaylen Larson, Household International; John Quindlen, DuPont; Michael Sullivan, Shell Oil; and Christopher J. Steffen, Honeywell.
Four examples of “highs” were: the much higher level of sophistication of users of financial statements; the input of the Committee of Corporate Reporting of the Financial Executive Institute; SFAS No. 106 on postemployment benefits; and the 5 to 2 vote to pass an SFAS. Four examples of “lows” were the failure of the FASB to see financial executives as both “preparers” and “users” of financial statements; specific rules to replace judgment; SFAS No. 96 on accounting for income taxes;
and SFAS No. 33 on inflation. An interesting discussion was held about financial accounting domination of management accounting.
The third panel was comprised of leaders of the public accounting profession, both past and present. The moderator was Professor Robert K. Mautz, a member of The Accounting Hall of Fame. The panelists were J. Michael Cook, Deloitte & Touche; Philip Defliese, Coopers & Lybrand and a member of The Accounting Hall of Fame; Robert K. Elliott, KPMG Peak Marwick; Duane Kullberg, Arthur Anderson; Raymond C. Lauver, Price Waterhouse and FASB; Herbert E. Miller, Arthur Andersen and the University of Georgia, as well as a member of The Accounting Hall of Fame.
Four examples of “highs” were the increased sophistication of the clients’ personnel; the explosion of information technology; the growth of the transnational accounting firms to serve the global marketplace; and the realization that one can be both a professional and concerned with business aspects as well. Four examples of “lows” were: the litigation explosion; the lower value placed by users on the financial statements; specificity replacing judgment; and the deadening effect of regulation on needed product/service development. An interesting discussion took place on the topic of losing clients because of ethical concerns.
This fine transcription of this excellent conference provides much “gristforthemill” in honors sections for accounting undergraduates and for class discussions in accounting graduate courses. This book, along with a viewing of the video, would be much to make recent accounting history exciting to students and to our colleagues. The book gives fine examples of the ethical interest of those in leadership roles in accounting. Tom Burns has done another fine job.
