Editorial

Accounting History,  Nov 2001  by Carnegie, Garry D

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This issue follows the holding of the second Accounting History International Conference in Osaka in August 2001. As indicated in the report of the conference convenor (see pp.121-6), a total of 45 delegates participated in this successful event. A revised version of a paper that was delivered as a plenary address at the conference appears as the lead article in this issue. The quality of the papers presented at the conference was very high, thus resulting in a rewarding and enjoyable experience for all concerned.

Diversity in accounting history research - in method, location and time frame among other variables - has been matched by diversity in perspectives on accounting's past. As Napier has shown previously, this makes accounting historiography itself an important area of inquiry. In his present contribution there is a focus on the use of a concept of progress in the writing of history from the eighteenth century and the use of a concept of evolution in "traditional" accounting history. In particular, the role of the narrative in history is explored in assessing the place for the assumption that accounting is "progressive".

Pitts examines the contributions of the "other" William Armstrong, an unsung accountant, economist and engineer. Armstrong is shown to have had a clear understanding of concepts such as discounted cash flows, risk-adjusted discount rates and net present value. He applied these concepts in practice from 1850 and is portrayed as a pioneer of modern financial management. Within this portrayal of one individual's consulting work in accounting and finance, the origin of ideas is explored, especially where certain "original" concepts or techniques are claimed to have been merely re-introduced at a later date.

Further evidence of the adoption of "sophisticated" costing techniques around the time of the Industrial Revolution is presented by Prieto-Moreno and Larrinaga-- Gonzalez in a Spanish study of the cost accounting practices of the Royal Textile Factory of Ezcaray (RTFE). The review of cost management practices at RTFE is provided through the following key activities: cost control, accounting for overhead, costs for decision making and standard costing. It is reported that the directors and the accountants had a sound knowledge of cost accounting but appeared to lack other managerial skills, thus leading, among other things, to the demise of the company.

Black seeks to augment our knowledge of accounting's past in the public sector through a study of the reforms of the Indian Public Works Department (PWD) from 1858 and the founding of the Royal Indian Engineering College (RIEC), also known as Cooper's Hill College, in 1870. The architect of these reforms, General Sir George Tomkyns Chesney, was the first Accountant-General of the PWD and was also influential in the founding of the RIEC. The role of the college was to train civil engineers for the reformed PWD. The study demonstrates the importance of RIEC's accounting curriculum which, according to Black, "... is perhaps the first formalised treatment of teaching public sector accounting in Britain".

This issue also features various calls for papers. Of particular note is the call for papers for the 9th World Congress of Accounting Historians (9WCAH) that is being held in Melbourne between 30 July and 2 August 2002. Papers are to be submitted by electronic means to the Congress Convenor by 22 January 2002. The 9WCAH is hosted by Deakin University.

The third Accounting History International Conference will be held between 17-19 September 2003 in Siena. The event will be held at the University of Siena under the convenorship of Angelo Riccaboni. It is being hosted by the Italian Society of Accounting History. Convening this biennial conference on different continents further evidences the broad international focus of Accounting History.

The 2001 Accounting History Special Interest Group manuscript award is being sponsored by the School of Business, University of Ballarat. The encouragement of excellence in accounting history research is commendable and much appreciated. The recipient of this award will be announced in the May 2002 issue.

Copyright Accounting History Special Interest Group of Accounting Association of Australia and New Zealand School of Accounting and Finance Nov 2001
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