Accounting - Theses

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    An investigation into the nature and quality of information utilized by the advisers in the stock-broking industry in Victoria
    Clift, Robert Charles ( 1973)
    In our economy stockbrokers and investment advisers are in a position to exert considerable influence on the financial decisions made by investors. However, there has been little effort in Australia to discover, by direct inquiry, the nature and quality of information utilized by them. Therefore, the main thrust of this study was to discover the nature and sources of information used by investment advisers and to discover the quality of that information with particular reference to quality as perceived by investment advisers. The investigation has yielded data relating to these questions, to the competence of advisers to use the sources of information currently available and to the extent to which those sources are actually used. The discussion contains suggestions and formal recommendations directed towards those responsible for the sources of information which could lead to improvements in the quality of information available. There are also suggestions which could lead to more effective use by investment advisers of the information already available. Implementation of either or both of these groups of suggestions would result in better information in the capital market and hence lead to its more efficient operation. In order to reduce it to manageable proportions the study was restricted to the Victorian stock-broking industry. However, for several reasons it is thought that this study is strongly indicative of Australian, as well as Victorian, practice. For example, the institutional investors – the life assurance companies, etc. – tend to take a national view and , within the rules of the Australian Associated Stock Exchanges, brokers compete for business on a national basis. However, it may be that similar research in other states would prove fruitful. As far as can be established from published sources this study is unique in the sense that no section of the Australian stock-broking industry has previously been investigated in this manner. Although the Report of the Senate Select Committee on Securities and Exchange is not yet available it is understood that that investigation related to the operation of the Stock Exchanges rather than to the nature and quality of information. Overseas, several organizations and numerous independent researchers have considered the problem of information in their own capital markets. Few of these studies were directed towards the information-gathering activities of investment advisers; the majority of them examined the informational content of various statements or variables. (From Preface)
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    Uniformity and diversity: the development of classification concepts in double-entry accounting
    Hain, Hans Peter ( 1973)
    Until well into the 19th century accounting data was processed under a system of "natural" classification. The categories used were purely descriptive with hardly an attempt at establishing an interrelated framework of classes. Accounts were regarded as isolated records intended to show movements or changes in individual assets and liabilities and to serve as evidence of property owned and liabilities owed. The only classification on two connected levels was the treatment of nominal accounts as subdivisions of capital but in practice closing transfers or expenses and revenue to capital were not usually carried out simultaneously and in a systematic manner and sometimes they were omitted altogether. Net proprietorship was regarded as a higher category comprising all assets and liabilities but it did not necessarily form part of the accounting system - many ledgers did not include capital accounts in the modern sense - but only appeared on statements outside the books. Almost from the beginning of accounting literature, writers recognized essential differences between various types of accounts and endeavoured to identify their respective characteristics. This primitive "theory" served practical purposes insofar as it helped to define and explain posting procedures and to establish posting rules. Rote learning of these rules and counting-house experience were the mainstay of accounting education. Up to the end of the 18th century the pattern of classification as set out in accounting treatises was remarkably uniform, although alternative procedure (e.g. in the treatment of investments) was recognized for certain types of accounts. On the other hand, accounting practice during that period shows considerable diversity, mainly because accountants - by design or neglect - frequently fell short of the standards set by contemporary authors. Both in accounting literature and in applied accounting of that period there were few examples of an independent, creative approach to the classification of accounting data. In the first half of the 19th century a new spirit of scientific investigation which is evident during the industrial revolution made itself felt in accounting literature. An increasing number of writers, particularly in France and Italy, questioned traditional techniques and began to analyze the basic concepts of the double-entry system in order to explore its inherent logic. Many of them believed that accounting was a science governed by laws or principles which they endeavoured to formulate. Because they proceeded from different points of departure, their theories differ widely although certain recurrent themes may be discerned. All of these theories are concerned with accounting as a process of classification; they enquire into the nature of transactions, the types of accounts on which they are recorded and the way in which this information is grouped and summarized. Early theories of accounts were mainly personalistic and balance-sheet oriented. However, towards the end of the century there is an increasing tendency towards a "materialistic", i.e. impersonally objective view of accounts and a stronger emphasis on the revenue statement. Economic flow concepts exercise an influence on the theory of accounts from the second half of the 19th century although they are not always applicable to enterprise accounts and are often supplemented by considerations of accounting flow. Several of the 19th century writers devised new systems intended to improve upon conventional classification methods. Early reformers developed various forms of multi-columnar journals and accounts which produced concentrated control data, e.g. a progressive total of period profit or capital. Some of these systems - usually directly derived from the authors' theories - were used in business practice but in most cases their impact was inconsiderable or at least only temporary. Towards the end of the century a group of authors showed great interest in the construction and design of charts of accounts, a development which may have been stimulated by the notion of account "series" - a distinctive feature of 19th century theory - and the increasing importance of industrial accounting. Some of the national systems of uniform accounting introduced in a number of European and other countries after World War II go back to these early classification theories. The confusing diversity of accounting thought expounded during the 19th and early 20th centuries did not have an immediate effect upon the majority of practising accountants and text-book writers; they continued to apply variants of traditional "Italian" system throughout most of that period and showed little, if any, propensity for the discussion of theoretical principles. It was only after World War I that the ideas and suggestions of 19th century theorists began to exercise an influence on business practice, mainly in connection with the post-war drive for rationalization and efficiency which emphasized the need for a systematic structuring of accounting data. The variety of conflicting ideas and theories proposed during the 19th and early 20th centuries caused a mild reaction even before the turn of the 19th century and led to repeated demands for greater consistency particularly in the preparation of accounting reports. The movement for uniform classification of accounting data which brought forth the first inter-firm comparison schemes and later encouraged the introduction of uniform national charts, used the categories and theoretical concepts of 19th century theory while endeavouring to reduce the number of alternatives to a workable minimum. Uniform classification of reports and accounts made great strides in a number of European countries after World War II, although the concept of uniformity was not necessarily extended to asset valuation and other aspects of the accounting process. Most national and sectional classification schemes in free-enterprise economies operate on a voluntary basis with a varying degree of acceptance. Both in uniform and conventional systems accounting classification tends to become stagnant unless methods and objectives are regularly re-assessed. It is therefore desirable that the principles of classification - the underlying rationale rather than the procedural detail - should be given continued attention both in accounting education and in applied accounting.