The Unbearable Ambiguity of Accounting

McSweeney, Brendan

doi:10.1016/s0361-3682(96)00039-6

Cited by 47 publications

(29 citation statements)

References 32 publications

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“…Additionally, because it is not possible to create a classification system that can prescribe accounting treatments for all potential transactions (McSweeney 1997;Mouck, 2004) this 'danger at the margin' is further exaggerated as it provides managers with the option of adopting accounting treatments that suit their purposes and yet technically still remain within the rules. The boundary between adopting an accounting treatment that is within the spirit of an accounting standard and adopting an accounting treatment that is technically within the rules but has been chosen to achieve a desired outcome is ill defined as evidenced by Enron's manipulation of earnings using mark to market accounting and Special Purpose Entities (Baker and Hayes, 2004).…”

Section: Accounting Auditing and The Issue Of Marginsmentioning

confidence: 99%

Mary Douglas, risk and accounting failures

Linsley

Shrives

2009

Critical Perspectives on Accounting

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Sociology and anthropology are especially valuable in providing a critical understanding of the risk-related implications of modernity. There has, however, been relatively little discussion of the work of Mary Douglas within accounting although her pioneering writings in the area of risk have been highly influential. This paper uses Douglas' cultural theory of risk to provide an alternative perspective on the demise of Enron and Andersen. The failure at Enron is interpreted through the gridgroup model and analysed as a series of events that threaten to destabilize established cultures. Accounting is thus construed as an activity that exists on the margins of boundaries. There are two important conclusions drawn from the analysis. First, as the worldviews of both the individualist and hierarchical cultures became threatened by the ensuing crisis they collaborated to ensure their perpetuation. This also averted individuals from becoming susceptible to recruitment by subversive egalitarian groups. Second, the individualistic culture of Andersen shaped practices within the firm weakening its ability to act as a gatekeeper and therefore public accounting firms need to modify their cultures if they are to police the margins effectively.

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Section: Accounting Auditing and The Issue Of Marginsmentioning

confidence: 99%

Mary Douglas, risk and accounting failures

Linsley

Shrives

2009

Critical Perspectives on Accounting

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“…But at the same time, accounting is said to be unbearably imprisoned with ( both technical and conceptual ambiguities and inadequacies e.g. Boland & Pondy, 1983;March, 1987;Hopwood, 1990;Power, 1992;Ezzamel, ) 1994;Carruthers, 1995;Miller, 1996;McSweeney, 1997 . Not only does ( ) ambiguity surround the term '' value' ' Tinker, 1985 but there is also lack of ''any coherent and durable technical definitions of assets, liabilities, profit, loss, revenue, function of the balance sheet, audit, auditor ( ) independence and other basics' ' Mitchell & Sikka, 1993, p. 49 .…”

Section: Introductionmentioning

confidence: 99%

“…2 1980 and Tom Lee's ( ) ( ) Cash Flow Accounting 1984, McSweeney 1997 , contrasts the ''ideal of non-arbitrary representation'' which both the texts he studied privilege, '' with the mode of attempted realisation''. His analysis shows that accounting representations have limits that make the possibility of an unambiguous accounting unattainable.…”

Section: Introductionmentioning

confidence: 99%

The Significance of Ambiguity in Accounting and Everyday Life: The Self-Perpetuation of Accounting

Davie

2000

Critical Perspectives on Accounting

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“…Reference to the ideal of representational faithfulness in order to condone such 'new' or 'modern' accounting seems to largely under-estimate the complex and contestable environment in which elected councils exist and does not, in spite of good intentions, reflect the underlying commercial substance of activities within present day local government. Moreover, the (mis)representation of community assets as monetary resources within statements of financial position of local governments is a spur to intervention (Hacking 1983:31;McSweeney 1997). It miscategorises the resources and, at the same time, makes them 'unstable' while the underlying quest for 'objectivity', within local government financial reporting, remains disconnected from prevailing organisational and social contexts.…”

Section: Resultsmentioning

confidence: 99%

“…The notion of 'objectivity' and its pursuit holds appeal in accounting which can be represented as a means of reducing instability, diversity and randomness in financial reporting. McSweeney (1997) investigated this notion in specifically evaluating 'the ideal of representational faithfulness' in financial reporting. According to McSweeney, 'the ideal of representational faithfulness [in financial reporting] functions regulatively' (McSweeney 1997:706) but it may also be constructed as 'an unattainable state' even though the pursuit of ideals 'can be perfectly real and eminently productive' (Rescher 1993:138).…”

Section: 'A Regulatory Ideal' As a Potential Defencementioning

confidence: 99%

Promoting Accountability in Municipalities

Carnegie¹

2005

Aust J Pub Admin

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Local government financial reporting reforms in Australia in the late 1980s and early 1990s were promoted on the basis of usefulness for decision making and for enhanced accountability purposes. Persistent criticisms of these reforms continue to be made, including those made by councillors and other ratepayers who often appear to find such information to be too narrow, too complex and often bewildering. A case is made for rethinking the present mentality, requirements and practices, especially with respect to the contrived recognition of ‘community assets’. Instead, an emphasis is placed on advancing broad‐scope accountability and meaningful financial reporting. To this end, the disclosure of a set of factual, reliable and interpretable indicators is proposed to enable a broader, more functional notion of accountability to be applied in Australian local government within prevailing social and organisational contexts. This contribution seeks to present a series of views, questions and proposals that are strictly concerned with ‘promoting accountability in municipalities’ (PAM).

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The Unbearable Ambiguity of Accounting

Cited by 47 publications

References 32 publications

Mary Douglas, risk and accounting failures

Mary Douglas, risk and accounting failures

The Significance of Ambiguity in Accounting and Everyday Life: The Self-Perpetuation of Accounting

Promoting Accountability in Municipalities

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