The future of corporate reporting: a review article (2000)

 

In a research article published in 2000, Professor Vivien Beattie noted that: “Significant changes in the corporate external reporting environment have led to proposals for fundamental changes in corporate reporting practices. Recent influential reports by major organisations have suggested that a variety of new information types be reported, in particular forward-looking, non-financial and soft information.”

This paper presents a review and synthesis of these reports and provides a framework for classifying and describing suggested information types. The academic antecedents for certain current proposals are identified and the ambiguous relationship between research and practice is explored. The implications for future academic research are discussed and a research agenda is introduced.

For additional insight, read the article “The future of corporate reporting: a review article” by Vivien Beattie published in the Irish Accounting Review 2000, 7(1), pages 1-36. As well, refer to the 1991 landmark research study called Information to be included in the Annual Report to Shareholders published by the Canadian Institute of Chartered Accountants (CICA). This 317-page study was drafted by J. Paul-Emile Roy, CA under the direction of a seven-member Study Group chaired by Gerald Trites, FCA.

Paul Pacter: Profile and Interview

 

Accountancy Age online published an April 2010 article called “Profile: Paul Pacter, international standard setter.” The article states that, although some people may not recognise his name, Paul Pacter is one of the most influential men in the history of international accounting standards."  Since 2000, he has played a variety of roles including director of standards for small and medium-sized entities at the International Accounting Standards Board and director at the global IFRS office for Deloitte in Hong Kong. During the 1990s, he served as staff member at the International Accounting Standards Committee working on projects including financial instruments, interim financial reporting, segment reporting, discontinuing operations, extractive industries, agriculture, and electronic financial reporting. From 1984-1989, he was vice chairman of the advisory council to the US Governmental Accounting Standards Board.

 

On July 12, 2011, an Interview with Paul Pacter was conducted in New York City by James Stocker for the Securities and Exchange Commission Historical Society’s virtual museum and archive on the history of financial regulation. A 53-page transcript of that interview notes that, during the 2000s, he also set up a very popular website (www.iasplus.com) for accountants involved in international accounting standards. Pacter comments that: “This was done for Deloitte. We just had an idea that there ought to be someplace out on the Internet where all sorts of information about international accounting standards was available. The old IASC didn’t have much of a website, although I did that too, I taught myself the HTML and the graphics and how to do FTP. Deloitte said, “Why don’t you set something up for IASs?” We opened shop as a free site. We opened the door in December 2000. Visitor numbers grew dramatically. When I left Deloitte in June 2010, we were getting 60,000 to 70,000 visitors a week – unique visitors. We had about 1,000 webpages. We had 4,000 downloadable PDF files. It was, and still is, the biggest website in a very narrow area of interest, international accounting standards.”

 

Looking back at a long career, Pacter comments: “...I must just say out of respect for the U.S. SEC, they’ve been a great contributor to accounting standards. They have stayed out of the development of the standards. They’ve encouraged and prodded and commented. They’ve insisted on high quality implementation. For that, I say I have the greatest respect for the commission and for their counterparts around the world. We don’t want politics setting accounting standards. We don’t want politicians setting accounting standards any more than I want them telling my surgeon how to do my surgery. Set the broad principles and let the private sector do the job. The commission has done that, and I thank them for that.”

Historical Notes on the Accounting Hall of Fame

Election to the Accounting Hall of Fame is perhaps the only longstanding national award for accountants -- and probably the only international one as well -- in which both academic and practicing accountants vie for the same award. The Accounting Hall of Fame was established at The Ohio State University in 1950 for the purpose of honoring accountants who have made or are making significant contributions to the advancement of accounting since the beginning of the twentieth century. Through 2008, 85 leading accountants from the United States and other countries have been elected to the Hall of Fame.

While selection to the Hall of Fame is intended to honor the people so chosen, it is also intended to be a recognition of distinguished service contributions to the progress of accounting in any of its various fields. Evidence of such service includes contributions to accounting research and literature, significant service to professional accounting organizations, wide recognition as an authority in some field of accounting, advancement of accounting education, and public service. A member must have reached a position of eminence from which the nature of his or her contributions may be judged.

Evolution of US Generally Accepted Accounting Principles - 1930 to 2004

The accounting history paper Evolution of US Generally Accepted Accounting Principles (GAAP) was prepared by Stephen A. Zeff, Rice University. The paper outlines noteworthy developments in US GAAP from 1930 to 2004. The focus is deliberately on those incidents that represented important changes in practice or in the way that accounting principles or standards were set. These incidents are typically ones for which interesting ‘stories’ can be told about the underlying factors that led to the developments. Many of these stories involve efforts by the preparers of financial statements, or by a branch of government, to engage in ‘political’ lobbying in order to promote their narrow interests; for example, to present a more favourable earnings picture or to promote the effectiveness of government fiscal policy. Yet many US accounting standards have been issued that truly reflect the application of sound concepts, undiluted by ‘political’ lobbying. Because these principled standards have emerged in a natural progression from the underlying concepts, their stories are not as ‘interesting’ as those that were driven by ‘political’ lobbying. (Stephen A. Zeff was inducted into the Accounting Hall of Fame in 2002.)

Remembering Ross Skinner (1923-2003)

Saskatoon-born Ross MacGregor Skinner, FCA, had a significant impact on Canadian accounting standards. His 31-year Clarkson Gordon career began in 1945. A partner by 1954, he became national accounting standards director in 1962.

Among his numerous committee posts at the Canadian Institute of Chartered Accountants (CICA) were 5 years of service on its Committee on Accounting and Auditing Research (1959-64), including a term as its chair, and 5 years on its Standards Advisory Board (1990-95). He chaired the Auditor General­’s Independent Committee on Government Accounting and Auditing (1975-78) and, in the same period, was influential in the CICA’s decision to form its Public Sector Accounting Board.

He served two five-year terms on the Financial Disclosure Advisory Board of the Ontario Securities Commission (1974-79 and 1990-95) including three years as its chair. He was a consultant to the Commission to Study the Public's Expectations of Audits (the Macdonald Commission, 1987-88) and, working closely with the Commission, was the principal author of its report. He also served as a vice-president of the American Accounting Association, on the Board of Governors of Havergal College (Toronto), and on the editorial boards of Contemporary Accounting Research, Accounting Horizons, and the Accounting Historians Journal.

In 1962, he was elected a Fellow of the Institute of Chartered Accountants of Ontario (FCA) and, in 1984, he was one of the first five recipients of the Institute’s Award of Outstanding Merit. His many honours and awards also include an honourary doctorate of laws from Brock University, the Canadian Institute of Chartered Accountants’ Distinguished Service Award, and the Canadian Academic Accounting Association’s Haim Falk Award for Distinguished Contribution to Accounting Thought.

Apart from his work on committees of professional bodies and institutes, he wrote several influential books. His first, Analytical Auditing, co-authored with R.J. Anderson, was translated into four languages. His most well-known work, Accounting Principles: A Canadian Viewpoint is highly regarded in the accounting world, as is the book Accounting Standards in Evolution, co-authored with J. Alex Milburn.

Ross Skinner retired in 1983. In 1987 he joined the University of Toronto as adjunct professor and director of its Centre for Accounting Studies, positions he held until 1990. In 1999, he received an honourary Doctor of Laws from Brock University. In 2000, he was inducted to the Accounting Hall of Fame (refer to the article “A Rare Induction to Fame” in CAmagazine online). He passed away in 2003.

A History of the Bar Code

In 1949, a young graduate student was wrestling with the concept of automatically capturing information about a product. He believed that the dots and dashes of Morse code would be a good model, but he could not figure out how to use those familiar patterns to solve his problem. Then, one day as he relaxed at the beach, he idly drew dots and dashes in the sand. As his fingers elongated the dashes he looked at the result and said, "Hey, I've got it." Three years later that graduate student, Joseph Woodland, and his partner received a patent on what began as lines in the sand, and the linear bar code was born. Today, the best-known and most widespread use of bar codes has been on consumer products. The Universal Product Code, or U.P.C., is unique because the user community developed it. Most technological innovations are first invented and then a need is found for the invention. The U.P.C. is a response to a business need first identified by the US grocery industry in the early 1970s. (For more information, see “A History of the Bar Code” at the Economic History Association online and "How UPC Bar Codes Work" at How Stuff Works online.

Remembering Professor Edward Stamp (1928-1986)

As a scholar and professional of truly international renown, Professor Edward Stamp was a British subject by birth and a Canadian citizen by naturalization. He took his degree from Cambridge in Natural Sciences and in 1950 was a Fulbright Scholar. In 1951, he came to Canada joining the public accounting firm of Clarkson Gordon & Co., where he qualified as a Chartered Accountant. He was admitted to partnership in the firm in 1959 and practiced in both Toronto and Montreal. In 1976, he was given the rare honour of Fellowship by the Ontario Institute of Chartered Accountants.

His academic teaching interests began in 1957 when he was a Special Lecturer at the Osgoode Hall Law School in Toronto. His first full-time academic appointment was in 1962 at Victoria University of Wellington in New Zealand where he was later appointed Professor of Accountancy. In 1967, he was appointed Professor and Head of the Department of Accounting and Business Method in the University of Edinburgh, Scotland - positions which he held until his appointment as Professor of Accounting Theory and Head of the Department of Accounting and Finance at the University of Lancaster in 1971. In 1975 he was named the Endowed Research Professor at the University of Lancaster. He founded the International Centre for Research in Accounting at that University in 1971 and was appointed as the Director of the Centre.

Professor Stamp's research interests are particularly broad, covering financial accounting and reporting, accounting theory, international accounting and auditing, and public accounting and auditing. He is the co-author of the basic document of the British conceptual accounting framework (The Corporate Report, 1975) and the author of the counterpart document for Canada (Corporate Reporting - Its Future Evolution, 1980).

One of the particular achievements of Professor Stamp is bridging the gap between academe and practice. His continual and articulate urging of the profession to respond to the new findings and direction emanating from the universities prompted much professional progress. His professional experience as a partner in an international public accounting firm and his senior academic appointments provide a uniquely rich background for these endeavours.

Among many of Professor Stamp's achievements and honours are: Advisor to Her Majesty's Treasury; Distinguished International Visiting Lecturer of the American Accounting Association; and Visiting professorships in Europe, Africa, the United States, Canada, Australia, New Zealand and Japan He was an executive member of the European Accounting Association and a Founding Member of the International Association for Accounting Education and Research in Japan. Professor Stamp was awarded the degree of Doctor of Laws at the University of Saskatchewan in 1984. He continued as the Endowed Research Professor and Director of the International Centre for Research in Accounting at the University of Lancaster, England, until he passed away on January 10, 1986 in Toronto.

The sixth Accounting History International Conference, Wellington, New Zealand

"The Accounting History International Conference (6AHIC) series provides for conferences being held every three years. Apart from serving as an important feeder of papers to Accounting History, the conference is symbolic of the international focus of the journal. Following successful and enjoyable conferences in Melbourne, Osaka, Siena, Braga, and Banff, we are pleased to welcome delegates and their families to the sixth Accounting History International Conference in Wellington, New Zealand. The School of Accounting and Commercial Law, Victoria University of Wellington in conjunction with the Accounting History Special Interest Group of Accounting and Finance Association of Australia and New Zealand invites you to join us 18-20 August 2010."

History of the CICA Corporate Reporting Awards

The CICA Corporate Reporting Awards (CRA) began in the early 1950s. Originally, they were based on hardcopy annual reports (from 1951-1992). Today, the awards have expanded beyond the annual reports to include sustainable development awards (introduced in 1993), MD&A (introduced in 1995), corporate governance awards (introduced in 1996), electronic financial reporting (introduced in 2001) and scorecards (introduced in the late 1990s). Now, the major federal crown corporations are also included (introduced in 2007). For a brief history of the Corporate Reporting Awards, refer to the March 2010 research paper “Corporate Reporting Awards and Financial Reporting Quality” by Tim Bauer (tdbauer@uwaterloo.ca) and J. Efrim Boritz (jeboritz@uwaterloo.ca) – pages 6-12 and Appendix B).

About the Ontario Securities Commission: Part 2 - The First Four Chief Accountants, 1986–1996

Published in the June 2010 Accounting Perspectives journal of the Canadian Academic Accounting Association (CAAA), this research article presents Part 2 of a historical review and analysis of the Ontario Securities Commission (OSC). It describes the role played by the first four Chief Accountants in the regulation of accounting and auditing from 1986 to 1996. Part 1 dealt with the period from the 1960s to 1985. Part 3 will treat the role played by the fifth Chief Accountant, from 1996 to 2008. Prior to this series of articles, the academic and professional accounting literature was largely barren on the OSC’s evolving role in accounting and auditing.

The Role of the Ontario Securities Commission in Accounting and Auditing from the 1960s to 1985

Published in the March 2010 Accounting Perspectives journal of the Canadian Academic Accounting Association (CAAA), this research article presents Part 1 of a historical review and analysis of the role played by the Ontario Securities Commission (OSC) in accounting and auditing from the 1960s to 1985. Parts 2 and 3 will review the roles played by the first five Chief Accountants, from 1986 to 2008. Prior to this article, the academic and professional accounting literature has been largely barren on the OSC’s evolving role in accounting and auditing.

Archive-It web archiving and preservation

Archive-It, a web archiving and preservation service, allows institutions to build and preserve collections of digital content. It is used by a number of Canadian universities, such as the University of Toronto and the University of Waterloo. Through a user-friendly web application, Archive-It partners can harvest, catalog, manage and browse their archived collections. Collections are hosted at the Internet Archive data center and are accessible to the public with full-text search.

The Global Accounting Digital Archive Network

The Global Accounting Digital Archive Network (GADAN) combines many sources of freely available digital information and archives related to accounting in various parts of the world. Initiated as a joint project of the American Accounting Association and the European Accounting Association, in collaboration with organizations and academics from many parts of the world, this on-going effort aims to assemble links to useful accounting archives.

CICA establishes Digital Archives Advisory Committee

The Canadian Institute of Chartered Accountants (CICA) has established a Digital Archives Advisory Committee (DAAC). DAAC comprises seven members representing the academic community (2), public accounting firms (2) and CICA alumni (3). Staff liaison is provided by the CICA Information Services Officer.

The committee will provide leadership in identifying areas where digital archives are needed, explore and recommend potential accounting history initiatives, and provide advice on establishing a potential joint venture with a Canadian university to host and maintain the CICA digital archives that would be accessible by interested parties over the Internet.

It is anticipated that DAAC will meet two or three times a year in Toronto with the first meeting being scheduled for October 23, 2009. The objective of this blog is to communicate with interested parties about DAAC's deliberations and to disseminate information on digital archives of interest to Chartered Accountants both in Canada and internationally.