Professor michael Mepham's contribution to accounting research: A review essay

British Accounting Review (1992) 24, 269-279

PROFESSOR MICHAEL MEPHAM'S

CONTRIBUTION TO ACCOUNTING RESEARCH: A REVIEW E S S A Y 1 M O Y R A J. M. KEDSLIE Unwersity of Hull STEWART A. LEECH University of Tasmania

INTRODUCTION Anyone who only knew of Professor Michael Mepham's work through a listing o f his publications might be forgiven for wondering w h y he appeared to write in the two apparently unconnected areas of matrix accounting and model building and 18th century Scottish accounting. However, c o m m o n strands are discernible in his work and Mepham rarely missed an opportumty to expand on these to the interested listener. His extensive study of the development of early accounting teaching and practice convinced him that there had been strong influences, particularly in education, from men with a non-accounting background, such as mathematics. The opportumties to apply mathematical modelling to present day accounting problems were seen by him as a natural progression from that much earlier influence. His careful analysis of a few early Scottish accounting textbook writers proved that they were extremely influential m their time and, in some cases, expounded ideas far ahead oftheir's which were 'rediscovered' by 20th century accounting teachers. The two strands which pervade his work are not, however, so unconnected as might at first appear. After all the very first written exposition of book-keeping appeared in a text on mathematics (Pacioli, 1494), while the subsequent spread of book-keeping into other countries was frequently through the medium of texts on algebra or mathematics (e.g. Hutton, 1788; Malcolm, 1718). Furthermore, as Mepham explains, many of the contrxbutions to the evolution of accounting in Scotland were provided by writers w h o had a primary or a parallel interest in mathematics. His own interests and skills, far from being disparate in nature, could well be seen as the continuation of a long tradition, and one which is today unfortunately at risk with the ever-increasing compartmentalisation of accounting as an academic subject. 0890-8389/92/030269+ 11 $08 00/0

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Mepham was a keen collector o f early accounting and mathematics textbooks and his articles and books reveal the care with which he sought to establish the progression of the educational aspects o f accounting. His writing, also disclosed his fascination with several early authors whose intellectual interests certainly extended beyond the preparation o f textbooks on book-keeping.

HISTORICAL WRITINGS Mepham's writing on this area concentrated on the contributions of individuals who were writers and/or teachers o f book-keeping and accounting. In 1976, the conferment by Heriot-Watt University of an honorary degree on Professor William Baxter led him to consider the origins o f accountancy teaching at Heriot-Watt College (Mitchell & Mepham, 1976). This article analysed the contribution of George Lisle and Robert and Thomas Millar. All three men were in practice in Edinburgh towards the end of the nineteenth and beginning of the twentieth century and all were active in the Society o f Accountants in Edi,aburgh. In addition to their part-time lecturing they all wrote articles and textbooks on accounting and related topics. Thomas Millar was something o f a visionary in that his writing: was distmgmshed from most other writers o f the tmae by the fact that he stressed the n o w topical idea of accountants considering the users o f accounting i n f o r m a n o n (Mitchell & Mepham, 1976, p. 261).

Lisle's 1899 book was similarly 'modern' in that it discussed the economic view of profit and capital. It also had some similarity to Millar's work in considering that the valuation method adopted should be dependent on the purpose for which the valuation was required. Subsequent articles by Mepham concentrated on 18th century Scottish contributors to the literature o f accounting. The first of these (Mepham & Stone, 1977) reviewed the work of John Mair, Rector of Ayr Grammar School and first Rector of Perth Academy. Malr wrote two accounting textbooks, Book-keeping Methodiz'd in 1736 and Book-keeping Moderniz'd published in 1773, m addxtion to books on arithmetic, Latin syntax and vocabulary and other topics. He included the teaching of book-keeping within the teaching of mathematxcs and his textbooks were still being read 70 years after their first publication. Mepham traced the changes in successive editions of the first book and explained the developments in trade which necessxtated these. These changes ultimately led to the complete re-write of the book and its publication as the second of his two texts. Because this was published posthumously it was never revised but

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did run to nine editions between 1773 and 1807 and became the basis for other writers. Mair's texts: were classics for over 70 years, 40 of these being after his death m 1769, and that, during the 18th century, they probably ran to more edmons than the book-keeping texts of any other writer (Mepham & Stone, 1977, pp. 133-134)

The next 18th-century writer to w h o m Mepham turned his attention was Robert Hamilton (Mepham, 1983) who, in 1777/79, wrote A n Introduction to Merchandize which contained two parts on book-keeping. Mepham considered that Hamilton's contribution to accounting had been undervalued by many writers because they had based their comments on 2nd and later editions of the work in which some material was seriously compressed and later removed completely. The topics emphasised by Hamilton included profit measurement, value to the owner, residual income, allocation, process costing and transfer pricing. His ideas on value to the owner appear to have been far ahead of his time: Halmlton clearly considers that it is Important to recognize pure fluctuation m the profit measurement system, and l-as valuation method is, in essence, that favoured m the Sandllands Report (1975) on inflation accounting. (Mepham, 1983, p. 47).

Although Hamilton did not use the term 'residual income' his writing is said to indicate clearly that such a calculation is essential and the concept is similar to that proposed by Anthony 200 years later in 1975. Hamilton also: consistently emphasizes that the account books should be useful for management decision-making and, in this context, he is well aware of the 'allocation problem' and the 'joint cost problem'. (Mepham, 1983, p 50).

Finally, Mepham considered Hamilton's influence on cost accounting and again found him to be an innovator and the most important writer on this topic at that time. He re-interpreted the omission of some of this work from the 1820 edition in a different way from other writers. For example, while Garner (1954, pp. 39-41) attributed this to the material's lack of contemporary relevance, Mepham attributed it to a zeal o f misguided revision by Johnston. Mepham held the view that Hamilton was a precursor of management accounting and contributed the most important work on this topic in the 18th century. He concluded that: We can now appreciate that Hamilton's approach to accountmg is the approach that accountants currently wish to stress and that the topics that he cons,dered are still ahve today and continue to engage our attention. Furthermore,-what he said on these topics remains relevant. (Mepham, 1983, p. 54).

Mepham wrote a fuller article on Hamilton's contribution to the origins of cost accounting (Mepham, 1988a) in which he looked at this work in its social and industrial context. Again he illustrated his conviction that

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Hamilton was far ahead of his time and that the system he proposed contained many o f the features of a modern integrated costing system. Mepham's extensive knowledge o f accounting textbooks not only enabled him to demonstrate that other later authors agreed with Hamilton's system but also to correct Littleton's misunderstanding o f it. Mepham (1988b) examined the writings o f four early Scottish writers, including Malr and Hamilton, against the background o f the Scottish Enlightenment. He compared the backgrounds of the writers and their various interests which resulted, he believed, in the diverse coverage of their publications. He was anxious to show that these accounting textbook writers were men with very wide interests and all were primarily educationalists, w h o included the teaching o f mathematics in their portfolio, rather than accountants. The article included a fascinating examination of the economic background from which such texts emerged and attempted to provide explanations for their emergence. It concluded that: the book-keeping texts, and particularly those of Mair and Gordon, must surely rank as achievements of the Enlightenment m that they were Important contributions to the development of systematic business systems which were of considerable practical use and extremely influential. (Mepham, 1988b, p. 166).

The culmination o f Mepham's work on early Scottish accounting history came with the publication of Accounting in Eighteenth Century Scotland (1988c). Again his approach was to focus on the writings o f the four most prominent teachers o f that period and to examine these in their historical context. He demonstrated not only that some o f their work was a repetition or refinement o f the work of earlier writers but that they were also innovative, particularly in the adaption of their texts to fit changing business circumstances. Mepham successfully defended these writers from modern critics by describing the differences between the objectives of present day accounting and that of 200 years ago and demonstrated h o w changing business structures had dictated changes in accounting. Mepham's book was referred to as a 'brilliant and wide ranging study' (Miranti, 1989, p. 570) and this phrase could equally be applied to the articles produced by Mepham in this area o f his research.

MATRIX ACCOUNTING

AND ACCOUNTING

MODELS

As a researcher and writer on matrix accounting and accounting models, Michael Mepham was far ahead o f his time. In his early articles on 'Matrix Algebra and Accounting' (Mepham, 1966a, 1966b), he predicted that: 'The increasing importance of computers and the current interest in reformation technology may also reqmre a revision of the tradmonal methods of describing accounting procedures and the accountmg framework and consequent changes in

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the method of teachmg accounting; such a revision will almost certainly be stated in mathematical terms'. (Mepham, 1966a, p. 687).

and that: 'The accountant's pragmatic approach to business problems means that those O.R. (Operations Research) techniques which prove relevant will eventually be added to his toolbag; the danger is that excessive caution and fear of mathematics will delay this change so long that when it eventually occurs, another profession will have established itself in a niche in the field of financial planning and control'. (Mepham, 1966b, p. 721).

In those articles, Mepham outlined the use of matrices in operational research and accounting, and concluded with ten features of matrix algebra which indicated potential usefulness in accounting. Importantly, Mepham also had the foresight to predict an increasing role for model building in accounting. He stated: 'The alm of model building is to reduce the complexity of the real situation to a manageable collection of rules and relationships which will enable the investigator to test out various courses of action. Here, the computer is o f invaluable assistance m enabling models to encompass far more factors and to be far more realistic than would be otherwise feasible'. (Mepham, 1966b, p. 723).

It was not until several years later that matrix-based financial modelling software became a common tool in accounting. Many operational research techmques are now incorporated as standard functions into such software. A major use of computer-based financial models is to undertake 'what-ifanalysis'--an approach for examining the likely consequences of alternative assumptions and policies. Unfortunately, a major revision of traditional accounting procedures has not yet been undertaken despite continuing changes in computer technology. Since Mepham's prophecy in 1966, a number of researchers have urged changes to the accounting framework in order to benefit from computerization. Mepham also continued to advocate changes to traditional accounting. 2 For example, in 1988, he stated: 'Even before the computer revolution, the T account model was inappropriate as a description of the firm's accounting information system. With the recent database developments it is even less suitable'. (Mepham, 1988e, p. 337).

His concern that a profession other than accounting would establish itself in the field of financial planning and control has proved to be a real one, in the sense that computer professionals have developed methodologies and database software for organising, storing, retrieving, mantpulating and controlling data, including financial data. Although accounting systems use data software, such systems have tended to follow traditional accounting concepts, including the use of ledger accounts. In The Use of Models in Accounting (1972), Mepham provided a glimpse

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of what was yet to come. He introduced model construction as a way of assisting accountants with the analysis and solution o f problems under consideration, and compared the models used by accountants with those used by operational research scientists. The non-mathematical nature of the accountant's models was noted, and the conclusion reached that: ' . . . accountants should now consider a reappraisal and a restatement of the models that they use' 'If they are to do this then they reqmre to become more famihar with the relevant branches o f mathemaucs'. (p. 289).

Mepham used mathematical techniques in a number o f publications on cost/pricing decisions and methods o f investment appraisal over the period 1975 to 1981. In 'Applying the limiting-factor rule to cost-plus pricing' (Mepham, 1975), he examined the cost-plus approach to pricing used in industry and related it to the economic theory of pricing summarised by the rule that a company should operate at the level o f output where marginal cost equals marginal revenue. He produced a graphical solution method for the case o f a single production constraint, and outlined a mathematical programming technique to obtain the optimum production programme where more than one production constraint exists. The aim of the article Joint production costs--A re-appraisal of sales value apportionment (Mepham, 1978a) was '.. to justify the relauve-sales-value method of apportioning joint variable costs by showing the uuhty of the resuhmg umt cost figures for profit measurement, planning and control' (p. 64).

He developed a model based on a break-even chart in a joint product or firm or department, and espoused a number o f advantages of using the relative-sales-value method for joint variable cost apportionment. In Opportunity Cost and the Accountant (1981), Mepham showed how the opportunity cost concept in economic theory could be reconciled with the accountant's view of cost. He addressed differences of opinion about whether or not opportunity cost is a practical and useful aid to solving business problems, and identified circumstances (such as the delegation of decision-making responsibility) that previously had not been considered. A number o f papers related to methods o f investment appraisal. A connection between the payback method and the net present approach was examined in 'A Payback Interpretation of the Annuity Tables' (Mepham, 1975a). In 1978, he argued for a re-instatement o f the Accounting Rate o f Return (ARR) for purposes of investment appraisal, and pointed out that a suitably defined ARR (as a measure of past performance) would facilitate comparisons with Investment appraisal calculations (Mepham, 1978a). This was followed by a note in 1979 on the same subject in which he demonstrated that, under certain conditions, a strong relationship between the

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ex ante and ex post rates o f return is not dependent on the depreciation

m e t h o d used (Mepham, 1979). He entered 'the residual i n c o m e debate' in 1980 with a survey o f the opposing views on the utility o f residual i n c o m e (RI). H e investigated the usefulness o f RI in divisionalised businesses and for the purpose o f investment appraisal, and persisted with his interest in the comparison o f ex post and ex ante rates o f return: 'An important feature of RI which has not received adequate attention in the hterature is the useful interface that it can provide between the ex ante appraisal of investment opportunmes and any ex post analysis of investment performance'. (Mepham, 1980b, p. 188). A m e y ' s criticisms o f RI were examined, and a paradox identified and resolved. In concluding his assessment o f the usefulness o f RI, M e p h a m identified a n u m b e r o f situations in which an emphasis on RI m a y have either a useful or adverse effect on decisions. T h e culmination o f these ideas during the 1960s and 1970s came in 1980 w h e n Michael M e p h a m ' s b o o k , Accounting Models, was published. Accounting Models must surely be recognised as a seminal contribution to accounting literature. As with his earlier writings, M e p h a m p r o v i d e d a rare insight into the use o f mathematical techniques and modelling m e t h o d o l o g y in accounting. H e emphasised that: 'With the relauve neglect of the use of mathematical models m accounting by accountants, other speclahsts, economists, engineers and, more recently, operauonal research sctenusts, have filled the gap and they have conclusively proved the usefulness of mathemaucal model building. Accountants are, by now, agreed that mathemaucal techmques have an tmportant place m assisting w~th the management of economic resources but they are still unfamibar with the idea that they have themselves always used models and the utthty of models may now need to be examined. The O.R. challenge to accountants requires more than an understanding of some of the more m~portant of the established O R. techmques, it also points the need for a restatement and reappraisal of the accountant's traditional models. This book ts an attempt to assist this process'. (Mepham, 1980a, p 15). In Accounting Models, M e p h a m concentrated on deterministic linear models m accounting, including a profit m o d e l for a single p r o d u c t firm; cost and profit models for m u l t i - p r o d u c t firms; cost and profit models for j o i n t products; b u d g e t models; a cost benefit m o d e l for long run decisions; the financial accounting model; the i n p u t - o u t p u t model; and various opt~mising models. It is not surprising to find a chapter on matrices, in winch m a t r i x models for cost-volume-profit analysis and budgeting are examined. H e extended his earlier writing on matrix accounting b y proffering a m a t r i x version o f the financial accounting model, and argued that the m a t r i x f r a m e w o r k is useful for the d e v e l o p m e n t o f an integrated accounting system:

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'When a cost accountang system is necessary or useful, it is possible for it to be organised independently of the financial accounting system and the financial accounting model, but there are advantages in having an integrated accounting model and a supporting integrated accounting system. In practice some degree of integration is usually present but, surprisingly, there seem to be comparatively few completely integrated systems, perhaps because of the hmltatlons of the traditional T account framework. The matrix framework encourages the adoption of an integrated model'. (Mepham, 1980, p 423).

In conjunction with a growing interest in database accounting, Mepham's work on accounting models and matrices continued in the 1980s. In January 1987, he presented a paper, 'The effect of database developments on management accounting', to the Management Accounting Research Conference at the University o f Aston. In that paper, he outlined the advances in database theory and the advantages o f database accounting systems. He argued that ' . . . there is a need for a new canonical data model for accounting in a computer e n v i r o n m e n t . . . ' , and discussed the advantages o f using a matrix framework for such a model (Mepham, 1987a). This paper was an early version o f a discussion paper on 'A conceptual model for database accounting' (Mepham, 1987b) which was to form the basis for a research project. A revised version o f the paper was presented at the British Accounting Association Annual Conference at the University of Glasgow in April 1987. The aim o f the research project, 'The development o f a conceptual model for database accounting', was to: ' . . . formulate a new canonical (i.e, standard) data model for accounting because (1) The existing T account model is inappropriate for database accounting systems, and (n) Standard data model formulauons developed for the database design process are inappropriate for a canomcal accounting model'. (Mepham, 1987c).

One of the aims o f the project was to create a prototype model which would incorporate financial accounting, cost accounting and budgeting. A first attempt at this prototype was developed at Heriot-Watt Umversity m 1989. The aims of the project were consistent with Mepham's earlier work and his unrelenting search for an alternative accounting framework to that used in conventional book-keeping systems. He was pursuing his ideas and behefs that the conventional accounting framework was unsuitable for a modern computer based environment. Further papers were to follow. In 'Matrix-based accounting: A comment' (1988a), Mepham developed a number of points made in an article published in 1986 on the theory and development o f a matrix-based accounting system (Leech, 1986). In particular, Mepham drew attention to the 19th century origins o f matrix accounting, argued that the matrix framework could be conveniently used in a relational database system based on the

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events approach (Sorter, 1969), and again suggested that the matrix framework is most suitable for a new conceptual canonical data model in accounting. This work was developed further in a chapter entitled 'The development of matrix-based accounting' (Leech and Mepham, 1991a), specially commissioned by the editors (Williams and Spaul) of the book IT

and Accounting: The Impact of Information Technology. W o r k on the use o f a matrix in database accounting systems continued with an examination o f a major area of research on which little progress previously had been m a d e - - t h e nature and form o f the user interface to relational database systems. In a paper presented at the 14th Annual Congress of the European Accounting Association held in Maastricht in April 1991, an argument was made for a matrix framework to be used as an interface between a relational database and accounting applications. A matrix framework in the form o f data cubes was described, and the way m which such an interface may be implemented was considered (Leech and Mepham, 1991b). Michael Mepham also intended to finish a book on the same topic as the research project (A conceptual modelfor database accounting). He had written a detailed proposal and completed several draft chapters. These draft chapters included an examination o f different types of accounting models, developments in events theory and database management systems and the advantages of using matrix as the new canonical data model for accounting. Additionally, he had written a paper on 'Events theory, computers and the accounting paradigm'. Unfortunately, at the time o f his death on 30 September 1991, his work remained unfinished. A mere list of publications (though these were plentiful compared to most of his contemporaries in the field o f accounting) and of citations (which were less frequent given that he was not writing in any o f the more supposedly glamorous areas o f accounting research, such as capital markets research) would not begin to measure h~s contribution to accountmg research. He was always available with discerning and useful advice, both at conferences and at his home university. As far as one of the authors is concerned, her doctoral thesis took on a new and vastly improved direction when Mike suggested an original data source of which neither she nor her supervisor was aware. Others, such as Roland Kaye, in the field of model-building, T o m Lee, in the field of theory and Bob Parker in the area of history can testify to his generosity with both his time and his intellect. Professor Michael Mepham's work was always written in an interestmg and understandable way and his enthusiasm for his chosen areas of research never dimmed and was apparent to all w h o knew him. He will be missed both for his enthusiasm and his contribution to accounting hterature.

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NOTES

1. Professor Michael Mepham, Professor of Accounting of Henot-Watt University, Scotland, and a long-standing member of the BAR E&tonal Board, died m 1991 after a long illness. 2. For example, McCrae (1976), Everest and Weber (1977), Ijiri and Kelly (1980), McCarthy (1979, 1982) and Geets and McCarthy (1991) REFERENCES

Everest, G. C. & Weber, R. (1977). 'A relational approach to accounting models', Accounting Review, Vol. LII (2), pp. 340-359. Garner, S. P (1954). Evolution of Cost Accounting to 1925, Alabama, Umverslty of Alabama Press Geets, G. & McCarthy, W. E. (1991). 'Database accounting systems', m B. C. Wdhams & B J. Spaul (eds), IT and Accountmg, pp. 159-183. London, Chapman & Hall. Hutton, C. (1788). A complete treatise on Practtcal ArithmetJc and Book-keeping both by Single and Double Entry, 8th ed London I31ri, Y. & Kelly, E. C. (1980). 'Multl&menslonal accounting and &stnbuted databases' their lmphcatlons for orgamzaUons and society', Accounting Organizations and Society, 1, pp 115-123. Leech, S. A. (1986). 'The theory and development of a matrix-based accounting system', Accounting and Business Research, 16 (64), pp. 327-34l. Leech, S A. & Mepham, M.J. (1991a). 'The development of matrix-based accounting', m B C. Wdhams & B.J. Spaul (eds), I T and Accounting, pp 127-148. London, Chapman & Hall. Leech, S A & Mepham, M. J (1991b). 'A relational/matrix framework for accounting',

14th Annual Congress of European Accounting Association. Lisle G. (1899). Accounting in Theory and Practice, Edinburgh, W. Green & Sons McCarthy, W E. (1979). 'An entity-relationship wew of accounting wew of accounting models', Accounting Review, Vol. LIV (4), pp. 667-686. McCarthy, W. E (1982). 'The REA accounting model: A generahzed framework for accounting systems m a shared data environment', Accounting Rewew, Vol. LVII (3), pp. 554-578. McCrae, T. W (1976). Computers and Accounting, New York, John Wdey and Sons. Malcolm, A (1718). A new Treause of Arithmetlck and Book-Keeping, Edinburgh. Mepham, M.J. (1966a) 'Matrix algebra and accountmg--l', Accountant, Vol CLV (4797), pp. 687-693. Mepham, M.J. (1966b) 'Matrix algebra and accounting--2', Accountant, Vol. CLV (4798), pp. 721-723. Mepham, M. J. (1972). 'The use of models m accounting', Accountant's Magazine, Vol LXXVI (792), pp. 282-289 Mepham, M J (1975a) 'A payback mterpretauon of the Annmty tables', Accounting Review, Vol. L (4), pp. 869-870 Mepham, M. J. (1975b). 'Applying the limiting-factor-rule to cost-plus pricing', Management Accounting, 53 (9), pp. 321-323. Mepham, M.J (1978a). 'Joint production costs: re-appraisal ofsales value apportionment', Management Accounting, 56 (2), pp. 64-68 Mepham, M. J (1978b). 'A reinstatement of the accounting rate of return', Accounting and Business Research, 31, pp. 178-190.

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Mepham, M. J. (1979). 'A note to a reinstatement of the accounting rate of return', Accounting and Business Research, 10 (7), pp. 74-75. Mepham, M.J. (1980a). Accounting Models, Stockport, Polytech Publishers. Mepham, M J. (1980b). 'The residual income debate', journal of Business Finance and Accounting, 7 (2), pp 183-199 Mepham, M.J. (1981) 'Opportumty cost and the accountant', Management Accounting, 59 (5), pp. 39-41. Mepham, M.J. (1983). 'Robert Hamdton's contmbutlon to accounting', Accounting Review, Vol. LVIII (1), pp 43-57. Mepham, M J. (1987a). 'The effect of database developments on management accounting', Management Accounting Research Conference, Umvermy of Aston. Mepham, M.J. (1987b). 'A conceptual model for database accounting', Discussion Paper. Mepham, M.J (1987c) 'The development of a conceptual model for database accounting',

Research Proposal. Mepham, M. J (1988a). 'The eighteenth century origins of cost accounting', Abacus, 24 (1), pp. 55-74 Me )ham, M.J. (1988b). 'Matrix-based accounting: a comment', Accounting and Business Research, 18 (72), pp 375-378. Me ~ham, M.J (1988c) 'The Scotush enhghtenment and the development ofaccountmg', Accounting HmormnsJournal, 15 (2), pp 151-176. Me ~ham, M.J. (1988d) 'Scottish accounting m the eighteenth century', Collected Papers of the Fifth World Congress of Accounting Histormns, Umvermy of Sydney. Me ~ham, M.J. (1988e). Accounting m ezghteenth century Scotland, New York & London, Garland Pubhshmg, Inc. Me ~ham, M J. (1991). 'Events theory computers and the accounting paradigm', Unpub-

h~hed Paper Mepham, M J. & Stone, W E (1977) 'John Malr, M A.: author of the First Classic BookKeeping series', Accounting and Business Research, 6 (26), pp 128-134. Mira,m, P. J (1989). 'Michael J. Mepham, accounting m eighteenth century Scotland', Accounting Revlew, Vol. LXIV (3), pp 569-571. Mitchell, F & Mepham, M.J. (1976). 'Accounting at Hemot-Watt College 1885-1920', Accountants Magazine, Vol. LXXX (84l), pp. 260-263. Pacloh, L (1494) 'Summa de Amtmettca, Geometria, Proportlom et Proportmnahta, Venlce

Sorter, G (1969) 'An events approach to basic accounting theory', Accounting Rewew, Vol XLIV (1), pp. 12-19 Dates Received December 1991, final version received May 1992