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Two Hundred Years ofAccounting ResearchTrevor Boyns aa Cardiff UniversityPublished online: 24 Nov 2009.

To cite this article: Trevor Boyns (2009) Two Hundred Years of Accounting Research,European Accounting Review, 18:4, 837-840, DOI: 10.1080/09638180903335033

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Book Reviews

Two Hundred Years of Accounting Research

Richard Mattessich

London and New York: Routledge New Works in Accounting History, 2008,

xxþ609 pp., £95.00 (hbk), ISBN: 0 415 77256 7 (hbk)

This is the eighth volume to appear in the Routledge new works in accounting

history series jointly edited by Garry Carnegie, John Richard (Dick) Edwards,

Salvador Carmona and Dick Fleischman. It is written by Richard Mattessich,

someone who has had a long and illustrious career as an accounting academic span-

ning many decades, and has written and published widely on many topics within

the discipline during that career. During his ‘retirement’, and especially since the

mid-1990s, Mattessich, together with a wide range of ‘local’ experts, has focused

on examining the development of accounting literature in many countries across

the globe. This book essentially brings together the fruits of these collaborative

efforts, comprising a mixture of published papers and unpublished manuscripts

written by Mattessich with the help of these co-authors. None of the chapters that

appear in this work, however, are ‘identical to any previously published material’

(p. xvii), often having undergone revision and updating since their original writing.

It should be made clear from the outset that this is not a reference work for those

interested in the history of accounting practices and, indeed, the author does not

claim it to be. Rather, as the title indicates, the focus is on accounting research,

the work being described by the author as a ‘systematic survey of the efforts

that academics and theoretically oriented accounting practitioners made over a

period of some 200 years’, with an emphasis on the ‘valiant efforts of promoting

the creation and spreading of accounting in a variety of countries or language

areas’ (both quotes, p. xvii). As Mattessich is at pains to point out, the focus of

this work is not on the history of accounting, but rather ‘on the history of its

research and the publications underlying it’ (p. xvii – emphasis in original).

Given its concern with research, as espoused by the literature, this work can be

seen as being in the tradition of a long line of classical works in the English

language, following in the footsteps of earlier works on the history of accounting

compiled by individuals such as Littleton, Garner, Chatfield, etc. which focused on

the developments in accounting as revealed in the accounting literature of different

periods. Unusually for such works by Anglo-Saxon writers, however, Mattessich’s

European Accounting Review

Vol. 18, No. 4, 837–848, 2009

European Accounting Review

Vol. 18, No. 4, 837–848, 2009

0963-8180 Print/1468-4497 Online/09/040837–12DOI: 10.1080/09638180903335033Published by Routledge Journals, Taylor & Francis Ltd on behalf of the EAA.

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collaboration with ‘local’ researchers means that this work is not based solely on

works published in the English language, but has also drawn on research published

in other languages. One of the motivations behind this work has been the recent

economic globalisation, and Mattessich’s somewhat utopian search for a general

theory of accounting (see section 19.8, pp. 319–320). As a result, this work rep-

resents an attempt to be as comprehensive in its coverage of different countries

as is humanly possible for a single individual (albeit with outside assistance).

The main text of the book covers some 609 pages, though the 19 chapters, of

which it is comprised, together with the associated notes, at a total of 341 pages,

only account for just over half of this total. The bulk of the remainder of the text

comprises a very useful set of bibliographical references to each chapter, which

provides an excellent starting point for any reader who wishes to follow up any of

the issues raised in the individual chapters. The book also contains a comprehen-

sive ‘Index of Names’ as well as a ‘Subject Index’.

The book is substantially, though not entirely, arranged by country and/or geo-

graphical area, but the coverage afforded to each differs greatly. After a chapter

describing international developments in the 19th century, two chapters are then

devoted to each of Germany, Italy, France, Spain and the ‘English-language area’.

The first of each such pair of chapters deals with the first half of the 20th century,

while the second deals with developments in the latter half of the century.

Subsequent chapters are devoted to developments across the whole of the 20th

century in either individual countries, for instance, Japan, Russia and Argentina,

or a small group of countries, that is, ‘Finland, the Netherlands and the Scandinavian

countries’ and ‘Poland and the Ukraine’. The penultimate chapter examines, very

briefly, developments in a range of countries, covering eastern Europe, Israel,

Portugal and Brazil, Latin America (outside Argentina and Brazil), Arab and

other Muslim countries, some African countries and countries of the Far East.

The final chapter of the work focuses on ‘The information economic perspec-

tive and the future of accounting’ in which, having reviewed recent develop-

ments, in particular the coming of age of the information perspective,

Mattessich suggests that the movement away from certainty to uncertainty, or

within accounting from deterministic to stochastic notions, during the late 20th

and early 21st centuries, parallels wider developments in the physical sciences.

Recognising the differing opinions as to whether such a change has been ben-

eficial or not, Mattessich muses on, but provides no definitive assessment as to,

whether the information perspective represents the holy grail of a general

theory of accounting (a ‘theory of everything’) as some proponents believe or,

by contrast, as argued by opponents, it merely represents a ‘theory of nothing’.

Because of the shear enormity of the task on which Mattessich has embarked, it

has been necessary for him to base his writings and views, in the main, on sec-

ondary sources and the judgements reflected therein. Hence, this is as much a

survey of other (often local) people’s views as to what works and writers were

important, as it is a fully independent assessment by Mattessich and/or his

co-authors. As a result, the nature and depth of coverage provided in different

838 Book Reviews

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chapters is highly variable. No two chapters are structured in an identical way,

whether they deal with two successive phases of development within a single

country or with developments in two different countries during the same time

period. This reflects both the concerns and personal preferences of those

writing in the local language but also, presumably, of Mattessich himself.

From my own perspective as someone who is interested in comparing the

development of cost and management accounting in different countries, some

chapters were found to be of great interest while others were somewhat

disappointing. In those countries where I have myself contributed to the relevant

historical literature, such as Britain, France and Italy, it was interesting to see

Mattessich’s interpretations of developments as a comparator for the views of

myself and my co-authors; for other countries I was able to tap into ideas

about which I previously had little or no knowledge and was grateful to be pro-

vided with access to a large range of potentially interesting literature for future

examination. For some countries/geographical areas, however, this work con-

tains little or no significant coverage of cost and management accounting

issues. This variability in coverage, however, although probably inevitable in a

work of this kind, is not limited to cost and management accounting, thereby

reducing somewhat its value as a source book for future comparative inter-

national accounting history research. In some chapters, certain paragraphs, and

indeed, even sections, are merely lists of authors and the year of publication of

their key works, telling us very little of any note.

Nevertheless it would be unfair to dwell too much on such weaknesses and/or

the errors in the text, such as, for example: ‘Garke’ (p. 8) instead of ‘Garcke’; not

only Dickinson originated from the UK, so too did Church (p. 8); ‘Le Marchand’

(p. 11) instead of ‘Lemarchand’; on p. 85, in the chapter on Italy, the French for

accounting plan should be ‘plan comptable’ not ‘plan contable’ (though the

Italian is ‘plan contabile’); on p. 96, Bergamin-Barbato is wrongly described

as male; and so on. A book of this sort is always likely to suffer from such

flaws and limitations, though it is to Mattessich’s credit that, as far as I have

been able to judge, they are relatively few. Despite these minor irritations,

anyone who remotely considers themselves to be interested in better understand-

ing the development of accounting research, and wishing to conduct comparative

international analysis, will benefit from reading this work. There is much scholar-

ship distilled in this work and it will undoubtedly save future researchers a lot of

hard searching for source materials. This is not to argue that I would necessarily

agree with everything Mattessich writes or, in those areas where I have personal

knowledge of the literature, I would have chosen to include the works that he has.

Nevertheless the value and significance of this book cannot be over-stressed – it

is an important and significant work. As claimed, it fills a gap in the literature, and

for that we must give thanks to the editors of the Routledge new works in

accounting history for choosing to include this book as part of their series but,

more particularly, to Mattessich himself for his efforts in bringing this work to

fruition during his ‘retirement’.

Book Reviews 839

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Future generations of accounting historians and those interested in the develop-

ment of accounting will be forever in Mattessich’s debt, his foresight in conducting

the research underlying this work and his high level of academic scholarship mean

that it is unlikely to be surpassed for a long time. This work will prove to be a very

useful research tool for historians of accounting, especially those engaged in

comparative international research and who wish to extend their knowledge base

about developments in countries outside of those which they have previously

studied. The work helps to illustrate the links between the ideas expounded in

one country to those in another, and for those interested in the diffusion and disse-

mination of accounting ideas, this work provides valuable insights into issues such

as Parker’s ‘exporting’ and ‘importing’ of ideas, as well as providing possible

source evidence for those who stress the concept of ‘multiple origins’ of accounting

ideas. Hopefully the work will stimulate further research interest in these areas, as

future historians attempt to draw together the threads revealed in this work.

While the claim made, either by the series editors or the publisher (p. i), that the

book represents the first and, to date, only attempt to ‘offer a comprehensive

survey of accounting research on a broad international scale for the last two cen-

turies’, is valid, the claim made on the same page that it may also serve ‘prac-

titioners and auditors all over the world, no less than students of accounting

interested in the evolution of its research efforts’, possibly seems a little fanciful.

Indeed, the author’s own claims are less grand, as revealed in the final sentence of

his preface: ‘The book may also serve accounting historians as a reference work

for many years to come, and be an impetus to scholars for delving deeper into

historical aspects not yet revealed’ (p. xviii). As already indicated, accounting

historians will undoubtedly find this work extremely beneficial, both as a

source of ideas and as a reference work, but it is far from clear to this reviewer

that many practitioners or auditors are likely to sit down and read through this

work from cover to cover. It is conceivable, I suppose, that some may wish,

and find the time, to do so, though probably only after they have retired!

Trevor Boyns

Cardiff University

# 2009, Trevor Boyns

An Analysis of the Role of the Textbook in the Construction of Accounting

Knowledge

John Ferguson, David Collison, David Power & Lorna Stevenson

Edinburgh: The Institute of Chartered Accountants of Scotland (ICAS), 2008, 224

pp., £15.00, ISBN: 978 1 904574 41 5

This book is about the ‘hidden curriculum’ we are buying into when using

textbooks and training manuals in introductory financial accounting courses.

840 Book Reviews

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The authors’ motivation to write it ‘[. . .] emerged out of a growing concern about

[. . .] over-reliance on textbooks in accounting education, and out of another issue

which has been gaining prominence in the literature; namely, that accounting

education serves an ideological role [. . .]’ (p. 5). Despite being an important

tool-in-use, the authors ascertain a lack of studies concerning textbook pro-

duction, content and usage as cultural practice in our society. This gap the

authors want to fill by revealing the – sometimes obvious, sometimes subtle –

values underlying the value chain from production to consumption (usage) of

textbooks and training manuals in teaching and learning activities.

Potential readers of this well-structured book are lecturers, students, members

of accounting bodies and other stakeholders in the higher education publishing

industry, who share the authors’ interest in overcoming a ‘container-view’

(Jonsson) on textbooks when seen as a neutral means to transfer technical

accounting knowledge. Because in the authors’ view on the construction of

accounting knowledge context matters highly, the book is organised around

four research questions trying to analyse not only the ‘painting’ but also its

‘frame’. The first question refers to what the publishers and textbook authors

are informed by when deciding on content; the second question deals with the

range of textbooks/training manuals from shareholders to stakeholders; the third

question asks how the textbooks/training manuals are used in praxi; the fourth

question focuses on the textbooks/training manuals as pedagogical tool to

foster/hinder critical reading and thinking of students confronted with the course

material.

Motivation and research questions correspond with the authors’ research

approach based on Thompson’s tripartite framework (1990): the analysis of

production, content and use of text in order to interpret its inherent ideological

character. While passing through these analytical steps, different research

methods were used in the empirical part of the study presented.

. The analysis of production was based on context analysis of the institutional

setting and its interdependencies, for instance, between publishing companies

in times of ‘conglomeratization’ (p. 61) and university lecturers in the context

of RAEs’ incentive-structures and/or professional bodies. The data was

collected from ‘[. . .] existing research and publicly available statistics about

publishing in the higher Education area for the UK’ (p. 53); complemented

by 15 semi-structured interviews with authors and commissioning editors

(cf. p. 70).

. The qualitative content analysis focused on ‘[. . .] five main linguistic modes

for the operation of ideology: legitimation; dissimulation; unification;

fragmentation; and reification’ (p. 43 with ref. on Thompson, 1990, see

below). Three textbooks (Black, 2005; Britton and Waterston, 2006; Wood

and Sangster, 2005), recommended by two Scottish universities and one

university in the North of England, and three training manuals published by

ACCA (2005), ICAEW (2007) and ICAS (2005) were analysed in detail.

Book Reviews 841

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. The analysis of the use of textbooks and training manuals was divided into

usage by lecturers and trainers (group I), and usage by students and trainees

(group II). Both groups were confronted with questionnaire surveys. In

group I, 280 email questionnaires were sent to members of the British

Accounting Review Research Register, asking for the textbooks and additional

materials they use, their perception of stakeholder coverage, and their ideals

of content to be known and skills to be developed in their courses. Thirty-

six lecturers responded to the survey, which is according to the authors a

low response rate. In addition, 11 semi-structured interviews with lecturers

from university and two tutors from professional accounting bodies took

place (cf. p. 126 for the interviewees’ profiles). In group II, the questionnaire

(online and hard copy) followed a two-stage design. Students from the three

universities mentioned above as well as students registered with a professional

body were questioned at the beginning of their introductory financial account-

ing class and at the end of the course in order to track down some changes of

perceptions during the course of their studies (cf. p. 146). In stage one, 218

undergraduates and 65 trainees, and in stage two, 139 undergraduates and 67

trainees responded to the questionnaire on their perception of the purpose of

accounting information, the objectives of business, recommended course

materials and their comments on what business should be about. Research

into group II was complemented by four focus group investigations at three

universities and one accountancy firm in order to get more in-depth infor-

mation about the topics answered in the questionnaire.

The findings presented by the authors, and based on the empirical data collection

described so far, are the following:

. For decision-making before/in the stage of production it is important to

remember that publishers want ‘to make money with textbooks’ (p. 76, interview

quotation). Lecturers as ‘gatekeepers’ play a vital role in business, because their

recommendation – the ‘adoption system’ – is a crucial asset for publishing com-

panies. The rationality behind textbooks as a mass product is to plan, produce

and distribute a ‘non-controversial’, homogeneous product (cf. p. 55) that is

changed only when new topics may enlarge profits. A second influence on

how textbooks are produced comes from the accreditation of accounting

courses by professional accounting bodies. Accreditation assures that the pro-

fessional accounting syllabus is part of the modules taught, which allows

exemption of students from examinations held by accounting bodies themselves.

. These aspects are reflected in the content of textbooks and training manuals

analysed by the authors and show ‘selective traditions’ (Williams, 1989) con-

cerning decisions on what is included in the text and what is left out. Along

Thompson’s five aspects – legitimation, dissimulation, unification, fragmenta-

tion and reification – the authors show the ideological character of content: a

shareholder view is dominating; a single set of financial statements is seen as

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satisfying the information needs of all stakeholders in an objective manner and,

consequently, ‘the highly subjective nature of the items which make up the

balance sheet are obscured’ (p. 102); a preference for their own regulatory

framework without discussing alternative governance approaches in other

countries is taken for granted; finally, the ‘naturalization’ (p. 107) of account-

ing as an ‘everyday-life behaviour’ of all of us. By defining what has to be

‘within the frame’ it becomes more obvious what is left out or only briefly

covered too (cf. p. 110f.): social and environmental accounting, legal and

political context, a critique of agency theory and shareholder value maximisa-

tion, as well as ethics.

. In the stage of usage, the results concerning lecturers and trainers show a dif-

ferentiated picture. On the one hand, Wood and Sangster (2005) is most fre-

quently recommended, partly combined with additional material to bring in

an alternative perspective. Furthermore, lecturers and trainers are aware of

selective traditions, for instance, of limited stakeholder representation,

obscured power relations and the indirect influence of professional syllabi

via accreditation. On the other hand, lecturers and trainers find it difficult for

students and trainees to cope with the excluded topics, especially when these

topics are not part of the examinations. While five interviewees consider

their textbook as ideological, others see textbooks merely as technical advi-

sors, not being ideological at all. The students’ and trainees’ perspectives

give the impression of not being much different, when in stage two students

‘still viewed accounting information as being predominantly prepared for gov-

ernment, analysts and shareholders and remained somewhat indifferent,

although less negative, towards its use by the general public or with regard

to social and environmental issues. Trainees studying for professional exams

held similar views [. . .] but these altered less during the course [. . .]’(p. 156). While university students were becoming more critical about a text-

book’s coverage of important topics and a given focus on maximising

shareholder wealth (although alternative perspectives have to face resistance

when taught too late (cf. p. 184f.)), professional trainees agreed more strongly

on a sufficient coverage of the topics they needed for the exams, accepting the

focus on maximising shareholder wealth as dominant (cf. pp. 165, 169).

These findings lead to the conclusion, that the ‘selective traditions’ described

above are powerfully shaping the worldview of lecturers, trainers, students and

trainees. Consequently, the authors give some recommendations at the end of

the book which attempt to widen the perspective on the construction of account-

ing knowledge in common, but with different target groups in mind: to make stu-

dents more aware of implicit values; to embody social, environmental and ethical

impacts of accounting from the beginning in textbooks, manuals and accredita-

tion processes, to stimulate the request for textbooks dealing adequately with

topics excluded so far; to use the relative maturity of professional trainees to

make them aware of the social conventions underlying their profession; and,

Book Reviews 843

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finally, to re-arrange the balance between technical and socio-economic knowl-

edge represented in professional syllabi.

For readers who are willing to understand quality of education within a wider

context of students/trainees becoming able to critically analyse the basic assump-

tions of their course materials, the book offers a highly welcome contribution.

First of all, there is empirical evidence that the six texts analysed are ‘[. . .] uncri-

tically reinforcing a particular set of socio-economic values’ (p. 193). This is con-

vincingly demonstrated by the transparent use of different research methods.

Empirical data stems from the analysis of the findings of other researchers in

the field, official statistics, three quantitative surveys and in-depth interviews

with protagonists in the field – a demanding mix of research methods. Further-

more, each of the four research questions is treated equally carefully by intertwin-

ing research question, method and interpretation of data – although some readers

would probably have liked to see the transcripts of the interviews and the original

questionnaires in an appendix.

Second, although the research is limited to the analysis of three textbooks,

three training manuals and by asking/interviewing lecturers, trainers, students

and trainees exclusively from a Scottish/UK context, the research approach is

inspiring in itself. To analyse context, content and usage of textbooks and training

manuals as well as to research into selective strategies of inclusion and exclusion

of accounting topics is definitely not only relevant in a Scottish/UK context. It

may lead to more theoretically informed explorations and refined judgement of

the ideological character of textbooks in different international contexts. The

authors touch on this aspect slightly when criticising an egocentric attitude to

prefer the national governance arrangements without preparing detailed argu-

ments for this preference. But this research is still to be intensified in the

future. What can be achieved by following this research approach, however, is

demonstrated clearly by the authors.

Third, in case the authors’ recommendations are taken seriously by stake-

holders whose upcoming decisions may change the rules of the game at least

partly, there is more and more necessity for an evaluation of the consequences

of these decision-making processes for the quality of teaching and learning in

introductory financial accounting courses. To link Thompson’s diagnostic

research approach with deeper going questions of evaluation may not have

been the intention of the authors – but in the eye of some readers the ground

may have been prepared by this analysis of the role of the textbook and the

valuable insights it offers too.

References

ACCA (2005) Preparing Financial Statements (Wokingham, UK: FTC Foulkes Lynch).Black, G.

(2005) Introduction to Accounting and Finance (Harlow: Pearson Education).Britton, A. and

Waterston, C. (2006) Financial Accounting, 4th edn (Harlow, FT: Prentice Hall).ICAEW

(2007) Accounting: Professional Stage (London: ICAEW).

844 Book Reviews

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ICAS (2005) Test of Professional Competence: Financial Accounting (Edinburgh: ICAS).

Thompson, J. B. (1990) Ideology and Modern Culture: Critical Social Theory in the Era of Mass

Communication (Cambridge: Polity Press).

Williams, R. (1989) Hegemony and the selective tradition, in DeCastell, S., Luke, A. and Luke, C.

(Eds) Language, Authority and Criticism: Readings an the School Textbook, pp. 56–61.

(London: The Falmer Press).

Wood, F. and Sangster, A. (2005) Business Accounting 1 (Harlow, FT: Prentice Hall).

Michael Habersam

Leopold-Franzens-University Innsbruck

Institute for Organisation & Learning

# 2009, Michael Habersam

Corporate Reporting and Company LawCharlotte Villiers

Cambridge: Cambridge Studies in Corporate Law, ISBN-13: 978 0 521 83793 4

(hbk), ISBN-10: 0 521 83793 6 (hbk)

When I first read the introduction to the book Corporate Reporting and

Company Law it was with a sense of trepidation; the work sought to integrate

a discussion of the statutory and common law framework within which corpor-

ate reporting exists with a detailed analysis of the domestic and international

accounting standards recommendations of international bodies working

towards harmonisation. The integration of these two disciplines was to be

made with detailed discussion of theoretical aspects and relevant literature

where appropriate. The author appears to be first and foremost a legal academic

rather than an accountant, and my initial concern was that the book could end up

being ‘neither fish nor fowl’: of use and relevance to neither lawyers nor

accountants. The danger of writing for two ostensibly separate professional

groups is that one ends up satisfying neither, producing a work which deals

with issues arising in both contexts with a superficiality borne of a desire to

range freely over too wide a range of topics. On reading the work this fear

proved totally unfounded; this is an excellent book which will satisfy lawyers

and accountants, academic and practising, providing a rich source of statutory

and standards-based resources of practical use and intellectual interest. The

structure is logical and coherent, each chapter following on sequentially from

its predecessor but at the same time sufficiently self-contained to facilitate

quick and informed selection and use. Instead of a discussion of theoretical

issues being confined – or consigned – to a final chapter or two, principally

as an afterthought, theory is integrated throughout each chapter, with plenty

of references to the academic literature to be followed up by the reader who

wants to delve deeper into a topic. This integration of theory and practice is suc-

cessfully and seamlessly achieved.

Book Reviews 845

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One of the basic contentions underlying the book is that historically the UK

disclosure regime is part of a legal framework that assumes a shareholder-

centred model of the company. The author observes at p. 52:

The regulatory structure of disclosure and reporting obligations is broadly

weighted in favour of financial reporting, which is of particular importance

to shareholders who are interested in the profit-making abilities of their

companies. In this way, the disclosure system supports the traditional

approach of company law that is concerned primarily with the relationship

between managers and shareholders. The disclosure regime reflects closely

the Anglo-Saxon system of accounting.

Chapter 1 sets the basic framework for the book, summarising the disclosure

system established under English company law. Importantly the author addresses

the question: is mandatory corporate reporting necessary? The principal reasons

for (including prevention of fraud, investor protection, accountability) and

against (cost, potential threat to confidentiality, misleading or incomplete infor-

mation) are evaluated, usefully placed within a historical context, for example, by

brief allusion to the South Sea Bubble Scandal. The significance of corporate

governance and corporate democracy is emphasised, notwithstanding that these

issues are addressed in depth later in the book, informing the reader from the

outset that this is not to be a ‘black letter’ law book or a book restricting itself

to consideration of accounting standards without providing a simultaneous theor-

etical critique. In this way the book ‘nails its colours to the mast’ from the outset;

it does not intend to compete with standard company law disclosure textbooks

such as Hastie and Bellamy’s Companies’ Accounts Checklist for the Disclosure

Requirement of British Company Law, Accounting Standards and the Stock

Exchange, or accounting rule equivalents issued by the leading accountancy

firms, but instead to evaluate and place within a theoretical context the law

and rules themselves. This first chapter outlines the principal criticisms of exist-

ing standards of corporate disclosure and then asks why these flaws resonate in

company reports. This general introduction and overview of disclosure theory

is helpful, providing the superstructure to which all subsequent chapters are

attached, providing coherence and logic to the book’s layout.

Chapter 2 deals with the regulatory framework, and makes a detailed study of

the statutory framework concerning corporate disclosure. Specifically, the rel-

evant provisions of the Companies Act 1985 and Financial Services and

Markets Act 2000 are discussed in detail, section by section, in the remainder

of the chapter. The chapter identifies the three principal layers of the regulatory

regime, these being legislative mandatory rules, self-regulatory mandatory

requirements, and voluntary codes and conventions. Usefully, the chapter

locates statutory provision within its European Union context, identifying the

Fourth and Seventh Company Law Directives. The impact of the earlier

Dearing Committee Report, ‘The Making of Accounting Standards’, on

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subsequent legislative agendas is evaluated. The danger in this chapter was that,

in addition to discussing general disclosure rules as they affect companies, it also

widens its remit to include an analysis of the listing rules as found in the Financial

Services and Markets Act 2000 and their oversight by the Financial Services

Authority. This could have resulted in an unnecessary diversion from the princi-

pal issues addressed both in this chapter and the remainder of the book, veering

into the realm of City regulation and Stock Exchange practice, but in this context

it works. The author does not intend to confine herself to disclosure in the rela-

tively narrow confines of the company, but additionally examines its importance

and interpretation in a range of other settings. This willingness to address the

interplay between the corporate reporting and securities market contexts is

further evidenced in the allocation of an entire chapter, Chapter 8, to consider-

ation of comparable regulations in the securities industry. One minor observation

at this juncture could be that greater discussion of the purposes of regulation in

the accounting context could have helped. Specifically, works by Tony Tinker

(1984) regarding the role and objectives of the state in setting standards in

accounting regulation theory, and the economic consequences of accounting

regulation as described by Shehata (1991), and Laughlin and Puxty (1983), and

Inchausti (1997), could have reinforced the book’s theoretical underpinnings.

Whilst the importance of the role of Companies House in the UK company dis-

closure regime cannot be denied, Chapter 5, dealing with the mechanics of filing

of documentation and the contents of forms, could have been omitted; infor-

mation could have been easily reduced and distributed amongst other chapters,

such as Chapter 3, ‘Persons Responsible for Presenting Corporate Reports and

Information’, and Chapter 4, ‘Users of Corporate Reports’. But this is a minor

suggestion and given that two of the audiences to which the book will be a

highly useful practical resource will be the legal and accounting professions,

its inclusion can perhaps be justified on this ground.

The book concludes with a series of thought-provoking proposals as to possible

future directions in financial reporting. The author identifies how the corporate

reporting system has failed to keep up with business trends and developments,

and how it is ill-suited to the needs of an activist and broad-based stakeholder

movement. The author observes at p. 296:

An alteration of the emphasis away from financial information and profits

would require a rebalancing of the regulatory structure so that social and

environmental and human capital reporting would be given the same or

equally strong regulatory support mechanisms as the financial reporting

aspects. The role of those responsible for providing information would

also have to be redirected.

Whilst the operating and financial review was intended to bring about managed

change to reflect an ‘enlightened shareholder view’, it remains bedevilled by a

system which at heart remains instinctively and intuitively preoccupied with

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the core concern of shareholders’ profit-maximisation. This, the author proposes

with a moderation of language which almost succeeds in concealing its true revo-

lutionary message, must be reoriented and refocused, root and branch, if financial

disclosure and reporting is to meet the needs of the diverse and competing needs

of stakeholder groups of this new century. To this end the common law and stat-

utory duties of directors and gatekeepers, including non-executive directors and

auditors, will need to change and change radically. The interests of wider groups

of stakeholders, to some of which the goal of profit-maximisation may not be a

priority, must now be taken into account in the form, contents and timeliness

of the information disclosed. At the heart of this perhaps more spirit-driven

regime the author places a new communicative approach in which information

is ‘tailored’ to meet the different needs of the groups to which it is provided,

all of which are treated equally by its traditional suppliers. Electronic communi-

cations now make such customisation more possible, feasible, than perhaps at any

previous time. This chapter intimates the author’s idealism as well as a willing-

ness to propose new approaches to disclosure which, whilst not always practical

in all contexts, will stir debate and provide valuable input to future policy debate.

In conclusion, this is a book which set itself a difficult task: to discuss, in a fully

integrated way, the disclosure obligations of companies, lawyers and accountants

according to statutory provisions and accounting rules, whilst at the same time

considering, and not superficially, wider theoretical issues. It succeeds in this

objective. The book is an excellent resource for practitioners, whilst also provid-

ing a concise introduction to theory and case law for academics looking beyond

the question ‘what is the rule’, to wider questions such as ‘why is it there?’ and

‘which interests does it serve?’ The author is to be congratulated on her success in

this well-constructed, successful ‘hybrid’ book which embraces both the legal

and accounting aspects of the UK and European Union disclosure regimes.

References

Inchausti, A. G. (1997) The influence of company characteristics and accounting regulation on

information disclosed by Spanish firms, European Accounting Review, 6(1), pp. 45–68.

Laughlin, R. C. and Puxty, A. G. (1983) Accounting regulation: an alternative perspective, Journal of

Business Finance and Accounting, 10(3), pp. 451–479.

Shehata, M. (1991) Self-selection bias and the economic consequences of accounting regulation: an

application of two-stage switching regression to SFAS No. 2, Accounting Review, 66(4), pp.

768–787.

Tinker, A. (1984) Theories of the state and the state of accounting: economic reductionism and

political voluntarism in accounting regulation theory, Journal of Accounting and Public

Policy, 3, pp. 55–74.

Simon Norton

Cardiff Business School

# 2009, Simon Norton

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