Accounting, Auditing & Accountability Journal

Reflecting on the production of intellectual capital visualisations : Table of Contents

Suresh Cuganesan, John C. Dumay — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The first aim of this paper is to present the methods developed by one of the co-authors to render visible the complexity of intellectual capital (IC). These were developed to make relationships between IC elements and value creation accessible to managers seeking to act on IC. The second aim of the paper is to explore the ability of visualisation techniques to inscribe the complexity of IC. This is pursued through a process of reflecting on the experiences of “being involved” in the production of IC visuals. Design/methodology/approach – The study details the methods utilised in a case study of a shared service centre of a financial services organisation and presents a reflective analysis using the Latourian notion of inscriptions. Findings – In conducting its reflective analysis, the paper traces the various translations undergone by the inscriptions of IC, with the end result of these movements being a visual meta-narrative connecting the various IC elements to one another as well as dimensions of IC value creation. Originality/value – The paper presents a novel examination of visualisations of IC as might be used within firms for the purposes of resource mobilisation and managerialist intervention.

Social disclosure, legitimacy theory and the role of the state : Table of Contents

Pablo Archel, Javier Husillos, Carlos Larrinaga, Crawford Spence — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The principal objective of this paper is to expand the scope of legitimacy theory (LT) through a detailed analysis of the links that exist between the legitimising strategies of firms and the characteristics of the political environment in which they are developed. Designs/methodology/approach – A discourse analysis was performed on the social and environmental disclosure (SED) of a multinational in the automotive sector with an established presence in Spain, in the context of the relational dynamics between the firm/society/state. Different channels of information were compared to capture both the official discourse as represented in the annual reports of the multinational and the discourse of employees and the State as represented in the media. Findings – The results of the research show that the firm under study used SED strategically to legitimise a new production process through the manipulation of social perceptions, and that this strategy was supported implicitly and explicitly through ideological alignment with the State. Research limitations/implications – Despite a widely-held assumption of a pluralist political context, the State is presented here as aligning itself with corporate management as opposed to the welfare concerns of employees. Thus, future research calling for regulation of SED should preface such calls with consideration of the orientation of the State. Originality/value – In contrast with the dominant approach to LT that considers the relationship of the firm with its stakeholders, the present study widens the scope of LT to consider the interplay between firm legitimating strategies and state support for such strategies.

Beyond commercial in confidence: accounting for power privatisation in Victoria : Table of Contents

Kerry Jacobs — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to examine whether the use of commercial-in-confidence arrangements within the public sector allows the deliberate manipulation of accounting figures to generate support for the privatisation agenda. Design/methodology/approach – A case study is presented of an Australian power entity, United Energy, where the privatisation was subject to commercial-in-confidence restrictions and differing opinions as to the accuracy of the entity's financial accounts during the privatisation process. It examines many of the key “commercial-in-confidence” documents, which are now available through parliamentary and official document sources, together with pre- and post-privatisation financial statements. Findings – The accounting figures were shaped to support a privatisation agenda and this was obscured by the commercial-in-confidence provision. Some attempts were made to use accounting arrangements to reduce federal taxes but this failed. A substantial element of the reported sale price represented internal transfers between the state-owned entity and the government with the actual price paid by the purchaser being substantially lower than the reported price. The price paid was based on the financial statements which were openly challenged by the Auditor-General. The paper strongly supports the contention that manipulation of accounting figures occurs under commercial-in-confidence privatisations. Research limitations/implications – This was limited to one example at one time. Further work is needed on other settings. Practical implications – The paper challenges the success claimed for the privatisation process and for the social benefits of privatisation by tender. Originality/value – There was little evidence of a substantial improvement in financial performance following privatisation or that the pre-privatisation performance was substantially boosted to support the privatisation agenda. It did show that the accounting served political ends.

Shifting NPM agendas and management accountants' occupational identities : Table of Contents

Janne Järvinen — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to illustrate how the occupational identity of management accountants working in the public sector is influenced by a change in management accounting and control systems as well as the underlying management agenda. Design/methodology/approach – From interviews with management accountants and their associates in five public hospitals, the paper illustrates how a change in new public management (NPM)-related managerial agendas interacts with how the management accountants perceive their professional roles. Findings – It is argued that the focus of the NPM agenda in Finnish public health care has shifted from a “down grid agenda”, emphasising private sector accounting and control methods, to a “down group agenda” that emphasises accountability, visibility and comparability. This change in agendas has materialised in the implementation of the diagnosis-related groups (DRG) system, and the resultant abandoning of activity-based costing (ABC) systems. Health care management accountants who rely on private sector ideals for constructing their occupational identity may resist the implementation of DRG if they interpret it as a shift in managerial discourse. Originality/value – The paper links two different and sometimes contradictory agendas within the NPM framework with the occupational identity of management accountants. The observed reaction to the shifting agendas has implications for understanding why some accounting systems carry more appeal than others.

Auditing Santa : Table of Contents

Dianne Dean — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to investigate the application of taxation legislation to a mythical character. Design/methodology/approach – The paper takes the form of humorous fiction. Findings – The paper suggests that different understanding of concepts can produce unexpected results. Research limitations/implications – Taxation legislation is difficult to apply to mythical characters. Originality/value – The paper is a humorous story designed for Christmas reading.

Back from fantasyland : Table of Contents

Lee Parker — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to reflect on the role and value of conferences. Design/methodology/approach – The paper takes the form of a poetic exposition. Findings – The poem identifies the common features and participants' experiences of conferences. It offers a satirical reflection on the value of speakers and their presentations and the promise of re-energised, up-skilled participants. Research limitations/implications – The poem raises awareness and pointing to issues regarding the pervasiveness and value of today's business, professional and research conferences. Originality/value – The poem offers a unique and reflective, personalised interpretation of experiences in the pervasive world of contemporary business and research conferences.

Words not actions! The ideological role of sustainable development reporting : Table of Contents

Markus J. Milne, Helen Tregidga, Sara Walton — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – Through an analysis of corporate sustainable development reporting, this paper seeks to examine critically language use and other visual (re)presentations of sustainable development within the business context. It aims to provide a framework to interpret and tease out business representations of sustainable development. Such representations are argued to be constitutive of the way that business has come to “know” and “do” sustainable development and, therefore, to constrain and enable particular actions and developments. Design/methodology/approach – The study uses a mix of synthesis, interpretive and discourse analysis to locate, interpret and critically analyse a corpus of written and presentational texts produced by a New Zealand business association and eight of its founding members' early triple bottom line reports. Findings – The business association and its members' reports are shown to present a pragmatic and middle-way discourse on business and the environment. Through the use of rhetorical claims to pragmatism and action, this discourse suggests that businesses are “doing” sustainability. But critical analysis and interpretation within a wider framework reveal a narrow, largely economic and instrumental approach to the natural environment. Originality/value – This paper offers a diagrammatic synthesis of the contested “middle ground” of the sustainable development debate, and thereby provides a frame of reference for further interpretational work on organisations and sustainable development.