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Accounting's chaotic margins

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  • Brian West
  • Garry D. Carnegie

Abstract

Purpose - The purpose of this paper is to explore the circumstances and implications of an episode of accounting change arising from the extended use of accrual accounting within the Australian public sector. The matter under scrutiny is the reporting of the library collections of Australia's public universities as assets in general purpose financial reports. Design/methodology/approach - A survey is undertaken of the annual reports of Australia's 36 public universities for the period 2002 to 2006. The analysis of the findings is informed by new institutional sociology (NIS), with a focus on mimetic processes, and the concept of “accounting's margins”. Findings - The survey reveals considerable diversity and subjectivity in the accounting practices adopted, as well as instances of sudden and dramatic changes in carrying values. The financial reporting of library collections is depicted as a “chaotic margin” of accounting, and the technical propriety of attempting to express and account for these non‐financial resources in financial terms is rendered problematic. Originality/value - The study questions the reliability and usefulness of the information reported, with implications for the accountability of the institutions surveyed as well as the accounting profession in the comparatively neglected domain of the public sector.

Suggested Citation

  • Brian West & Garry D. Carnegie, 2010. "Accounting's chaotic margins," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(2), pages 201-228, February.
    • Handle: RePEc:eme:aaajpp:v:23:y:2010:i:2:p:201-228
    DOI: 10.1108/09513571011023192
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    References listed on IDEAS

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    1. Susan Newberry, 2003. "`Sector Neutrality‘ and NPM‘Incentives’: Their Use in Eroding the Public Sector," Australian Accounting Review, CPA Australia, vol. 13(30), pages 28-34, July.
    2. Susan Newberry, 2001. "Public-Sector Accounting: A Common Reporting Framework?," Australian Accounting Review, CPA Australia, vol. 11(23), pages 2-7, March.
    3. Roger L. Burritt & Michael McCrae & Chandra Benjamin, 1996. "What Is A Public-Sector Asset?," Australian Accounting Review, CPA Australia, vol. 6(11), pages 23-28, March.
    4. G.D. Carnegie & P.W. Wolnizer, 1997. "The Financial Reporting of Publicly-owned Collections: Whither Financial (market) Values and Contingent Valuation Estimates?," Australian Accounting Review, CPA Australia, vol. 7(13), pages 44-50, May.
    5. Peter Miller, 1998. "The margins of accounting," European Accounting Review, Taylor & Francis Journals, vol. 7(4), pages 605-621.
    6. Garry Carnegie & Peter Wolnizer, 1999. "Unravelling the Rhetoric About the Financial Reporting of Public Collections as Assets," Australian Accounting Review, CPA Australia, vol. 9(17), pages 16-21, March.
    7. Salvador Carmona & Marta Macías, 2001. "Institutional Pressures, Monopolistic Conditions and the Implementation of Early Cost Management Practices: The Case of the Royal Tobacco Factory of Seville (1820–1887)," Abacus, Accounting Foundation, University of Sydney, vol. 37(2), pages 139-165, June.
    8. Meyer, John W., 1986. "Social environments and organizational accounting," Accounting, Organizations and Society, Elsevier, vol. 11(4-5), pages 345-356, July.
    9. M. McGrae & M. Aiken, 1994. "AAS 29 And Public-Sector Reporting: Unresolved Issues," Australian Accounting Review, CPA Australia, vol. 4(8), pages 65-72, November.
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    Cited by:

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    2. Hassan M.A. Elhawary & Brian West, 2015. "All for Nothing? Accounting for Land under Roads by Australian Local Governments," Australian Accounting Review, CPA Australia, vol. 25(1), pages 38-44, March.

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