Accounting

In crisis or ascendancy?

Research output: Contribution to journalArticleResearchpeer-review

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Abstract

Recent corporate failure has challenged the credibility of the accounting profession, leading many stakeholders to question the usefulness of financial reports for decision-making. This paper examines fluctuations in the accounting profession's authoritative influence over accounting standard setting and financial reporting. It focuses on the period following the collapse of the HIH Group in 2002, with contextual reference to earlier periods. It then outlines the submissions made by the accounting profession, actuaries and regulatory institutions to the Royal Commission Inquiry into the collapse of the HIH Group. These submissions are analysed in relation to the profession promoting functionally defined interests and offering stable compromises, the questioning of the legitimacy of accounting techniques by society and government, and the demand by other constituents that the accounting profession overcome the inequalities that arise from current accounting practice. Finally, the paper offers suggestions as to how the profession can reconstruct itself to regain its lost authority.

Original languageEnglish
Pages (from-to)71-87
Number of pages17
JournalAccounting History
Volume10
Issue number3
DOIs
Publication statusPublished - 1 Nov 2005
Externally publishedYes

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Ascendancy
Accounting profession
Usefulness
Authority
Decision Making
Contextual
Credibility
Constituent
Stakeholders
Fluctuations
Legitimacy
Questioning
Government
Compromise
Financial reporting
Decision making
Corporate failure
Accounting practices
Actuaries
Accounting standard setting

Cite this

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title = "Accounting: In crisis or ascendancy?",
abstract = "Recent corporate failure has challenged the credibility of the accounting profession, leading many stakeholders to question the usefulness of financial reports for decision-making. This paper examines fluctuations in the accounting profession's authoritative influence over accounting standard setting and financial reporting. It focuses on the period following the collapse of the HIH Group in 2002, with contextual reference to earlier periods. It then outlines the submissions made by the accounting profession, actuaries and regulatory institutions to the Royal Commission Inquiry into the collapse of the HIH Group. These submissions are analysed in relation to the profession promoting functionally defined interests and offering stable compromises, the questioning of the legitimacy of accounting techniques by society and government, and the demand by other constituents that the accounting profession overcome the inequalities that arise from current accounting practice. Finally, the paper offers suggestions as to how the profession can reconstruct itself to regain its lost authority.",
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Accounting : In crisis or ascendancy? / Abeysekera, Indra.

In: Accounting History, Vol. 10, No. 3, 01.11.2005, p. 71-87.

Research output: Contribution to journalArticleResearchpeer-review

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