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Financial accounting cases
BOOK
297
REVIEWS
& Young). Cook provides a thoughtful consideration of the way in which new business practices, changes in the business environment and new levels of accountability impact upon accounting practices and upon business. Hanson offers an analysis of the working of an international accounting firm which is perhaps a little bland in the context. Rutteman on the other hand puts forward a pungent review of the difficulties faced by standard-setters in general and would-be harmoniscrs in particular. Any collection of papers-and particularly one drawn from such a disparate grouping-is likely to provide a range of approaches and attitudes. In addition different users of the book will come to its parts for dXerent purposes and from different positions. However, it offers a useful collection of rcscarch and opinion which should form part of any accounting library. For those researching the process of accounting change there will bc material from different environments rellccting the importance of economic conscqucnccs, for those rcscarching in international accounting there is material breaking new ground. PETER City
Ur~iversity
WALTON
Rfrrirzess
S&0/
KEFERENCES Burchell, S., Clubb, C. & Hopwood, A. G. (1985). ‘Accounting in its social context: towards a history of value added in the United Kingdom’, Accountinsq, Organizations and Soriety. pp. 381-413. Johnson, T. J. (1982). ‘The state and the professions: pcculiaritics of the British’. In Giddens, A. & Mackenzie G. (eds), Social CInsr and TheaDivision c?fLabour, Cambridge: Cambridge University Press. Samucls, J. M. & Piper, A. G. (1985). [nfcrnafiorlal Acl-o~rr~tir~~~: ~1Suruc~y. London, Croon1 Helm. Wilhnott, H. (lY8h). ‘Organising the profession: a theoretical and historical examination of the development of the major accountancy bodies in the UK’. .4rc-o14nrir~~y, Or,qa+ izations and Society. pp. 5555580. Zeff, S. A. (1978). ‘The rise of “economic consequences”‘. journal of Accountancy, December. pp. 56-63.
R. E. Hoskin 81J. S. Hughes FINANCIAL
Drydcn
ACCOUNTING
Press (New York,
CASES
1988). 201 pp. A6.95 (pbk)
I confess to approaching a review of the above with misgivings as to its likely suitability for adoption. Many UK students (and staff) have an in-built resistance to US accounting books. In addition the preface describes the casebook as available for use as a supplement to textbooks at an ‘introductory or intermediate level’. Books attempting too wide a coverage often fail to meet any of the needs addressed. However, a closer examination of the nature of many of the cases led to a reassessment of the value of the book. With a minimum of modification
298
BOOK REVIEWS
the majority of cases would provide valuable additional material for financial accounting courses at the intermediate or final level. In total, there arc 43 cases in the book, covering the following broad areas: basics, 7; assets, 13; liabilities, 12; shareholders’ equity, 5; business combinations, 2; other, 4. Almost all of the cases base their material on published financial accounting information. Within the above sections there are cases relating to the traditional problem areas in financial reporting, e.g. depreciation and inventory valuation, as well as cases on more contemporary issues. Included in the latter category are cases relating to the following: related party transactions; intcrcst capitalisation; research and development costs; executory contracts; pension obligations; contract terms; discontinued operations. The weakest part of the book relates to the basic cases, a number of which hardly merit the title. It is questionable whether many of these cases are either suitable for, or worthy of inclusion in, an introductory course. One of the strengths of the book is the attempt to relate many of the casts to contemporary issues in accounting literature. For example, case 19 on Research and Dcvclopmcnt Costs makes rcfcrencc to the economic consequences argument, while case 28, relating to leased assets, refers to contracting arrangements and management compensation plans. A number of the cases involve reconstruction ofjournal entries or T-accounts, while others require the ability to make approximate adjustments from one accounting method to another using mainly publicly available information. Apart from those included in the basic section, however, all cases also require discussion of the relevant issues involved. In summary, the book provides a useful supplement to textbooks in intermediate and advanced level financial accounting, at a price which is very rcasonable given the material provided. Ii. J. LIMMACK Universify
of Stirling
K. S. Kaplan & A. A. Atkinson ADVANCED MANAGEMENT ACCOUNTING Prentice Hall International (Englewood Cliffs, NJ, 1989), 2nd edn. 817 pp. Al9.95 (pbk) Many readers of BAR will be familiar with the first (1982) edition of this work, by Kaplan alone, and interested in its development. Others will be attracted by the promise of its title, given the need for a text covering recent research in this field. The new edition retains the aim of presenting more advanced and contemporary developments in the subject to students who have completed an introductory course in Management Accounting. There is, however, a change of focus. Where the first edition was inclined to present material which had become prominent in the academic literature and which might lead to interesting managerial applications, the second is more concerned with accounting practices which
297
REVIEWS
& Young). Cook provides a thoughtful consideration of the way in which new business practices, changes in the business environment and new levels of accountability impact upon accounting practices and upon business. Hanson offers an analysis of the working of an international accounting firm which is perhaps a little bland in the context. Rutteman on the other hand puts forward a pungent review of the difficulties faced by standard-setters in general and would-be harmoniscrs in particular. Any collection of papers-and particularly one drawn from such a disparate grouping-is likely to provide a range of approaches and attitudes. In addition different users of the book will come to its parts for dXerent purposes and from different positions. However, it offers a useful collection of rcscarch and opinion which should form part of any accounting library. For those researching the process of accounting change there will bc material from different environments rellccting the importance of economic conscqucnccs, for those rcscarching in international accounting there is material breaking new ground. PETER City
Ur~iversity
WALTON
Rfrrirzess
S&0/
KEFERENCES Burchell, S., Clubb, C. & Hopwood, A. G. (1985). ‘Accounting in its social context: towards a history of value added in the United Kingdom’, Accountinsq, Organizations and Soriety. pp. 381-413. Johnson, T. J. (1982). ‘The state and the professions: pcculiaritics of the British’. In Giddens, A. & Mackenzie G. (eds), Social CInsr and TheaDivision c?fLabour, Cambridge: Cambridge University Press. Samucls, J. M. & Piper, A. G. (1985). [nfcrnafiorlal Acl-o~rr~tir~~~: ~1Suruc~y. London, Croon1 Helm. Wilhnott, H. (lY8h). ‘Organising the profession: a theoretical and historical examination of the development of the major accountancy bodies in the UK’. .4rc-o14nrir~~y, Or,qa+ izations and Society. pp. 5555580. Zeff, S. A. (1978). ‘The rise of “economic consequences”‘. journal of Accountancy, December. pp. 56-63.
R. E. Hoskin 81J. S. Hughes FINANCIAL
Drydcn
ACCOUNTING
Press (New York,
CASES
1988). 201 pp. A6.95 (pbk)
I confess to approaching a review of the above with misgivings as to its likely suitability for adoption. Many UK students (and staff) have an in-built resistance to US accounting books. In addition the preface describes the casebook as available for use as a supplement to textbooks at an ‘introductory or intermediate level’. Books attempting too wide a coverage often fail to meet any of the needs addressed. However, a closer examination of the nature of many of the cases led to a reassessment of the value of the book. With a minimum of modification
298
BOOK REVIEWS
the majority of cases would provide valuable additional material for financial accounting courses at the intermediate or final level. In total, there arc 43 cases in the book, covering the following broad areas: basics, 7; assets, 13; liabilities, 12; shareholders’ equity, 5; business combinations, 2; other, 4. Almost all of the cases base their material on published financial accounting information. Within the above sections there are cases relating to the traditional problem areas in financial reporting, e.g. depreciation and inventory valuation, as well as cases on more contemporary issues. Included in the latter category are cases relating to the following: related party transactions; intcrcst capitalisation; research and development costs; executory contracts; pension obligations; contract terms; discontinued operations. The weakest part of the book relates to the basic cases, a number of which hardly merit the title. It is questionable whether many of these cases are either suitable for, or worthy of inclusion in, an introductory course. One of the strengths of the book is the attempt to relate many of the casts to contemporary issues in accounting literature. For example, case 19 on Research and Dcvclopmcnt Costs makes rcfcrencc to the economic consequences argument, while case 28, relating to leased assets, refers to contracting arrangements and management compensation plans. A number of the cases involve reconstruction ofjournal entries or T-accounts, while others require the ability to make approximate adjustments from one accounting method to another using mainly publicly available information. Apart from those included in the basic section, however, all cases also require discussion of the relevant issues involved. In summary, the book provides a useful supplement to textbooks in intermediate and advanced level financial accounting, at a price which is very rcasonable given the material provided. Ii. J. LIMMACK Universify
of Stirling
K. S. Kaplan & A. A. Atkinson ADVANCED MANAGEMENT ACCOUNTING Prentice Hall International (Englewood Cliffs, NJ, 1989), 2nd edn. 817 pp. Al9.95 (pbk) Many readers of BAR will be familiar with the first (1982) edition of this work, by Kaplan alone, and interested in its development. Others will be attracted by the promise of its title, given the need for a text covering recent research in this field. The new edition retains the aim of presenting more advanced and contemporary developments in the subject to students who have completed an introductory course in Management Accounting. There is, however, a change of focus. Where the first edition was inclined to present material which had become prominent in the academic literature and which might lead to interesting managerial applications, the second is more concerned with accounting practices which