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The Accounting Historians Notebook Volume 31 Article 1 Number 2 October 2008

2008 Academy of Accounting Historians, 1973-2008-2023 Richard G.J. Vangermeersch

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Recommended Citation Vangermeersch, Richard G.J. (2008) "Academy of Accounting Historians, 1973-2008-2023," The Accounting Historians Notebook: Vol. 31 : No. 2 , Article 1. Available at: https://egrove.olemiss.edu/aah_notebook/vol31/iss2/1

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The Accounting Historians Notebook

Vol. 31, No. 2 © Academy of Accounting Historians October 2008 The Academy of Accounting Historians 1973 - 2008 - 2023 Richard Vangermeersch, CPA, CMA Emeritus Professor of Accounting University of Rhode Island

Abstract to attain its fiftieth year celebration in For a Panel on 2023. “The Academy of Accounting The first step to reach 2023 is to Historians: 1973-2008-2023 know the scenario in which TAAH was Thirty-five years is a long-time for a not-for born in 1973. The second step is to -profit. Four of the panelists who were there know where we are currently in 2008. for the 1973 founding of The Academy of The third step is to get ready to predict Accounting Historians have continued to be and plan our future for 2023. This paper involved through 2008 and present a plan to follows these three steps. get it to its fiftieth anniversary in 2023. The panelists will be looking at the conditions for 1973: The Birth of TAAH accounting history research in 1973 so to Rarely do organizations sprout forth explain why the academy was founded. without some antecedents. TAAH had Please help us by participating in the planning the advantage of two studies of the aca- process and join us in the implementation of the plan. demic situation of business colleges and then a 1970 Committee Report of the

American Accounting Association. The Academy of Accounting The two 1959 studies were The Edu- Historians cation of American Businessman (The 1973 - 2008 - 2023 Carnegie Foundation Report) and Higher Thirty-five years is a long time for an Education for Business (The Ford Foun- organization to be born, start-up, and dation Report). The first study stressed survive. From thirty-five to fifty years is the importance of doctoral programs in just as difficult. Constant work must be business colleges: done to update any organization. The This will entail a considerable Academy of Accounting Historians change from the backgrounds and (TAAH) must plan and focus and work interests of present faculties; it

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will also mean establishing THE ACADEMY OF much closer relations that now ACCOUNTING HISTORIANS exist with the liberal arts and Administrative Coordinator: other faculty groups. In order to Tiffany Welch augment the supply of new fac- Academy of Accounting Historians ulty members and develop Case Western Reserve University stronger business school staffs, far greater emphasis will have to Weatherhead School of be placed on doctoral programs. Management While it would be unwise for 10900 Euclid Avenue more than a few of the largest Cleveland, OH 44106-7177 and strongest institutions to at- Phone: (216) 368-2058 tempt to offer the doctorate, the Fax: (216) 368-6244 entire field’s future depends on e-mail: [email protected] the quality of these programs (xv). Journal of Accounting Historians: The second study also stressed doc- Becca Hayes toral programs in business administra- The University of Alabama tion. It was stated in The Ford Founda- Culverhouse School tion Report: of Accountancy At the doctoral no less than at Box 870220 the lower academic levels, there Tuscaloosa, AL 35487-0220 is room for marked improve- ments in the quality of training PH: (205) 348-6131 that the business schools are Fax: (205) 348-8453e-mail: providing. But, in addition to [email protected] the improvement in quality, there is need for a large increase THE ACCOUNTING in quantity. … (p. 431). HISTORIANS NOTEBOOK These two studies significantly Editor: Joann Noe Cross changed the demand for Ph.D’s in ac- College of Business University of counting, as well as other areas in busi- Wisconsin Oshkosh ness colleges. It took a few years but Oshkosh WI 54901 even accounting programs began to Fax: (920) 424-7413 expand their horizons from the tradi- E-mail: [email protected] tional MBA/CPA hires to Ph.D.’s in accounting. [I remain deeply puzzled HOME PAGE about how accounting Ph.D. programs http://accounting.rutgers.edu/raw/aah in the U.S. allowed themselves to re- duce substantially the number of ac- Secretary: counting Ph.D.’s in the last 10 years]. Stephanie Moussalli Hence, by 1970 there were many more (850) 863-6586 Ph.D.-trained accounting professors in [email protected] the U.S.--a prime prerequisite for in- creased scholarship in accounting.

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The AAA Committee on Account- The Committee recommended an ing History was established during the elective course in accounting history at 1968-69 presidency of Sidney David- the Graduate level. “Doctoral candi- son of the University of Chicago. He dates should be required to demonstrate has been a long-time member of TAAH an appreciation of the historical dimen- and was co-editor with William T. sion of current thought, practices and Baxter of Studies in Accounting Theory institutions either by written or oral (1962). Davidson also wrote “Old examination. Doctoral candidates Wine Into New Bottles” (April, 1963) might also be expected to demonstrate (“Davidson, Sidney” in Chatfield and a knowledge and understanding of ac- Vangermeersch’s The History of Ac- counting history per sé” (pp. 54-55). counting: An International Encyclope- The Committee commented on the dia, pp. 188-189). Sid Davidson chose current state of research material avail- Stephen A. Zeff, then at Tulane, as able to researchers in accounting his- chairman of the Committee and Zeff tory (p. 54) and included an Appendix was pretty sure that he suggested to “Sources of Accounting History” (pp. Davidson the other members of the 56-64) done by Homburger. The Com- Committee (email of 6/22/2007 from mittee gave a view of where accounting Steve Zeff to me). The other members history stood: of the Committee were Richard P. At a time when funds for ac- Brief, NYU; Michael Chatfield, then at counting research of many types UCLA; David Green, Jr. then at the are becoming more plentiful, University of Chicago; David F. Haw- financial support for research in kins, Harvard; Richard H. Homburger, accounting history continues to Wichita State University; Maurice be almost nil. Accounting his- Moonitz, University of California-- tory research, when weighed Berkeley; and Edward Peragallo, Holy against model-building, empiri- Cross (Accounting Review, Supple- cal research involving contem- ment, 1970, p. 52). porary data, application of The Committee viewed the ends of quantitative or behavioral tools accounting history as being both intel- systems design and analysis, lectual and utilitarian and gave nine etc., is frequently viewed as examples of historical studies in ac- “useless” or “not practical.” counting (pp. 53-54). Certainly a broad Doctoral and post-doctoral re- base for such research was recom- search tends to be affected by mended: available funds, and it is rarely The committee believes that (if ever) stated that accounting research in accounting history history research is a high- with the collaboration of busi- priority item in the allocation of ness and economic historians funds (p. 55). should be encouraged. Further- The Committee believed the AAA more, the relevant environment should play a very proactive role in embraces not only the economic encouraging accounting history re- but also cultural and political search (p. 55). This is important to factors in constant interplay (p. note, because some have stated that it 54). (Continued on page 4)

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(Continued from page 3) would not be sufficient to yielding publi- was the failure of the AAA to be more cations. The early 1970’s was the time proactive that led to the 1973 funding of period--in my and many other opinions-- TAAH. in which the future in business colleges Please do not think that research in was the management science field and if accounting history started in the U.S. or you were not heavily into computers, the world in the 1970’s. Many scholars systems, operations research, and mathe- (some of them accounting practitioners) matical modeling you were “dead in the contributed to accounting history water.” throughout the world prior to the 1970’s. There was an attendance list pub- It is outside the scope of this paper to lished in the aforementioned article by detail the accounting history research of Coffman, Roberts, and Previts (pp. 157- the 1800’s and the first 70 years of the 158). Previts, in a recent communiqué 1900’s. It would be very useful for ac- with me, thought that Dick Brief counting history scholars in various (Chatfield and Vangermeersch, pp. 81- countries to detail such contributions. 82) was there. Of the 21 attendees listed, It was reported in “A History of The plus Brief, 10 have been very active in Academy of Accounting Historians, TAAH. They are: Richard P. Brief; S. 1973-1988” that the apparent lack of Paul Garner; H. Thomas Johnson interest in the AAA to the 1970 report (Chatfield and Vangermeersch, pp. 354- led to a small group of accounting pro- 355); Kenneth S. Most (Chatfield and fessors to form TAAH at the Quebec Vangermeersch, p. 424); Gary John Pre- City meeting of the AAA (Coffman, vits; Alfred R. Roberts (“In Memoriam,” Roberts, and Previts, 1989). Personally, and “In Memory of Al Roberts; April I was contacted by Willard E. Stone--the 2007); Williard E. Stone; Richard chairman of the Accounting Department Vangermeersch; Murray C. Wells at the University of Florida, where I did (Chatfield and Vangermeersch, p. 607); my Ph.D. work--about attending this Stephen A. Zeff (Chatfield and Vanger- meeting (Chatfield and Vangermeersch, meeersch, pp. 618-619); and Vernon K. pp. 569-580). It is possible Paul Garner Zimmerman (Chatfield and Vanger- also contacted me, as Paul was a vora- meersch, pp. 619-620). cious correspondent to accounting histo- My one contribution to the meeting-- rians (and many others throughout the as I remember--was to insist on an imme- world). Paul had retired in 1971 as a diate formation of TAAH, rather than to long-time dean of the College of Com- do it at the 1974 AAA Annual Meeting. merce and Business Administration at Luckily, the group did this (Coffman, the University of Alabama (Chatfield and 1996). In addition to the aforementioned Vangermeersch, pp. 270-271). Both 1973-1988 history, there was an update Williard and Paul organized the meeting, for 1988-1997 published by Coffman, along with a recent (1972) Florida Ph.D., Roberts, and Previts in 1998. Another Gary J. Previts, then at the University of good summary has been done by Oktay Alabama (Chatfield and Vangermeersch, Güvemli in 2006. p. 476). Where is the TAAH today? In my I went to the organizing meeting as view, it needs to revive and reach the one who was concerned that his interest high watermarks of the late 1980’s. in doing research in accounting history There are many challenges to overcome.

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Membership is declining; members are son and Richard Mattessish between aging; the United States needs to have Canadian accounting historians and many more Ph.D. candidates; and TAAH the Canadian Council on the Humani- needs to adapt to the exciting things in ties is a role model for success. accounting history happening in many 4. “The History of Accounting: An countries in Europe, Canada, Mexico, International Encyclopedia” needs some in Asia, and Australia/New Zea- to be revised.. Michael Chatfield and land. TAAH has come a long way and I co-edited it in 1996. However, the has a long way to go, if we plan for the project was started in 1991. There has th future--i.e. our 50 Celebration in 2008. been a great out pouring of accounting I propose that TAAH appoint a 2023 history scholarship all over the world Committee. I have listed 35 possible since 1991. There should be consid- goals for implementation by 2023. I eration of electronic means to revise hope that others will add enough goals to the book. reach 100 and that of them 50 be chosen 5. U.S. Steel, the first Billion Dollar by the results of a survey of the member- Trust, should be the first project in ship. I tried a similar survey when I a series of studies of accounting as- chaired the trustees of TAAH in the early pects of annual reports. There has 1990’s. Here are my 35 goals. Where been a recent dissertation at Case Uni- are your other 65 goals? versity that could be an excellent role The list follows: model. 1. There should be a series of Continu- 6. There is a need to reestablish the ing Professional Education (CPE) legitimacy of biographical research sessions on the history of account- as a dissertation topic for Ph.D.’s in ing. The United States has a fairly accounting. We seem to have gone broad perspective of CPEs and I’m backwards on this type of dissertation sure other countries do as well. Ac- since 1973. counting historians certainly have 7. There are many significant people, completely missed this significant (not accountants) who had a strong market. background and/or interest in ac- 2. There needs to be developed a Ph.D. counting and who should be sub- in Accounting History by a consor- jects of accounting historical re- tium of schools. This Ph.D. may be a search. Another way is to focus on second Ph.D. for those with a Ph.D. in the important accomplishments of another field. Many of the classes leaders of the accounting profession would be conducted through elec- and of accounting educators. I did tronic meetings between accounting such a preliminary study on 15 U.S. history professors and these Ph.D. historical figures. I was most disap- candidates. pointed by the reaction of my col- 3. It is time to prepare a set of formal leagues in accounting history. It ap- submissions to national “Council of pears that they are convinced that ac- Humanities’ groups so as to recog- counting historians have a very limited nize the History of Accounting as a role to play in general history. I still legitimate contender for funding respectfully disagree with this view. and recognition. The fine relation- ship, as exemplified by Alan Richard- (Continued on page 6)

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(Continued from page 5) Garner Center at the University of 8. There is a need to expand account- Alabama come to mind. With the ing horizons to include leftish-type proceedings and other artifacts found, writings. My recent research on Stu- bound, and passed around, account- art Chase indicated that his leftish- ing history would be truly a world- type writings were omitted from The wide phenomenon. Accountants’ Index. How many more 14. There needs to be noted the various writers and their writings might be a collections of annual reports very interesting accounting historical throughout the world. They repre- research question throughout he sent a treasure chest for national and world. international research. 9. Accounting historians should ex- 15. There is a need to expand Vanger- pand their horizons to include a meersch’s 1978 base of twenty broader scope of accounting histori- companies’ annual reports to a cal figures like women and various global look at the accounting as- minority groups. For instance, in the pects of annual reports. While this United States both Afro-Americans book has had a positive impact and and women have suffered mightily in remains in print, there is still much to terms of unutilized or underutilized do. potential in accounting. Yet some 16. There is a need to expand the base have succeeded. of accounting historians beyond 10. There should be a Great Books “industrial companies”. While I Series in Accounting. Mortimer have been less neglectful about rail- Adler certainly was successful with road accounting than most accounting his Great Books Series for western historians, I still admit to a bias to- civilization. Surprisingly to most, wards “industrials” in my research. there are a substantial number of This came from being brought up in great books in accounting. an accounting and finance world fo- 11. There should be reprints of the cused on “industrials” and railroads proceedings of International Con- classified as being an “utility”-- gress of Accountants. The last pro- regulated organizations. This bias ceedings of the International Con- means there are many open research gress of Accountants to be reprinted areas in railroads and utilities. was the 1957 Congress. 17. There should be further research th 12. There should be reprints of the done on City Directories of the 19 International Congress of Account- Century. How did accountants ing Educators and Researchers. and accounting firms portray them- This is unfortunate as some of the selves in those more free-wheeling published proceedings are out- days? What a great possibility for standing documents. international comparisons this area would make. 13. There needs to be a number of schools throughout the world that 18. There are many rich books on ac- house artifacts of International counting and on accounting histori- Congress of Accountants. The Uni- cal studies that still need to be versity of Mississippi and the Paul translated into other languages. This is also true for accounting peri-

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odicals. Anyone with strong lan- literature. There are some excellent guage abilities could provide signifi- examples for the United States as a cant aid by translation of these works. guide. 19. There is a need to develop further 25. There needs to be reviews of vari- the network of accounting histori- ous religions to codify references to ans throughout the world. With the accounting and accountants. There explosion in electronic means of have been some attempts at this with communication, The Academy of the Christian Bible but there have Accounting Historians should be been few rigorous research efforts truly a worldwide force. made to do comparative studies of 20. Professional exams in accounting different religions. need much more study by account- 26. There is a need to develop a num- ing historians. There are many, ber of general endowment funds many different exams in professional for the propagation of studies in accounting that society values very accounting history. A guaranteed highly but accounting academics source of income helps assure enough don’t. In fact, discussions of and funds for different initiatives in every research on these exams are taboo in year. Plans can be made well in ad- most academic circles. vance if the income can be assumed. 21. Accounting historians need to go 27. There is a need for the careful de- beyond the private sector to study velopment of specific endowment Not-for-Profits, Educational Insti- funds for accounting historical tutions, Hospitals, Governments, uses. Many contributors like to have and Persons. Let’s try to shake the their contributions go for a specific private sector bias that permeates purpose near to their heart. academics in accounting. 28. There needs to be a better develop- 22. There should be established Ac- ment of a roster of future leaders in counting History Research Fellows. accounting historical organizations. One potential site is the AICPA We have to assign this task to the Library at the University of Missis- Trustees of The Academy of Ac- sippi. Let’s name a few more history counting Historians. centers and declare them to be fel- 29. There needs to be studies made as lowship centers. to the current market for account- 23. There is a need to have a separate ing history and as to how those and well-developed listing of ac- markets can be expanded. In my counting research material in ar- view, we have oversaturated a much chives throughout the world. It is too small market. I’d rather use our incumbent on The Academy of Ac- ingenuity to expand the size of the counting Historians to replicate its market. This is no easy task. 1978 study of archives in accounting 30. Accounting historians must realize so that researchers in accounting his- the fragility of its current state. tory know where to go. There needs to be a concentrated ef- 24. There should be an international fort--especially in the United States-- study of the portrayals of account- to increase the supply of Ph.D. candi- ants and accounting in cinema and (Continued on page 8)

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(Continued from page 7) Meeting of TAAH. While I do not know dates and to interest some of them in where we will be in 2023, I believe with accounting history. good planning and execution and good- 31. The World Congresses of Account- will we will reach 2023. ing Historians should be a model of References how to preserve the happenings of Chatfield, Michael and Richard Vanger- all such international meetings of meersch, editors, The History of Ac- accountants. With the return of the counting: An International Encyclope- four-year cycle, we have a chance to dia (NY: Garland 1996), see pages have the time to prepare proceedings. listed in text. 32. There needs to be a specific net- Coffman, Edward N., Alfred R. Roberts work of past presidents of account- and Gary John Previts, “A History of ing history organizations. Past the Academy of Accounting Histori- presidents should all be involved as ans,” Accounting Historians Journal, they have much experience to offer Dec. 1989, 157-205. current administrators. Coffman, Edward N., Alfred R. Roberts, 33. There must be a need to under- and Gary John Previts, “A History of stand the importance of tax-exempt The Academy of Accounting Histori- status (for example, U.S. 501C or- ans,” Accounting Historians Journal, ganizations) to the development of Dec., 1998, 167-210. accounting history organizations. Gordon, Robert Aaron and James Edwin This is crucial for tax deductions for Howell, Higher Educator for Business contributions. (NY: Columbia University Press, 34. There is a need to establish a 2023 1959). Committee for The Academy of Güvemli, Oktay, et al, World Congresses Accounting Historians. A fiftieth Relevant to Accounting Congresses and year celebration is not guaranteed. It Symposiums (Istanbul, Istanbul Sebest will take much planning, dedication, Muhasebeci Mali Müsavirler Odasi, imagination, and work by many to 2006), refer to pp. 213-237, 367-381. get there. Pierson, Frank C. et al, The Education of 35. There is a need to expand this list American Businessmen: A Study of to 100 items and the longer list University-College Programs in Busi- should be sent for rankings to all ness Administration (NY: McGraw parties interested in accounting Hill, 1959). historical research. This survey will enable us to see where we should go Previts, Gary, “In Memory of Al Rob- and where we should not. It should erts,” Accounting Historians Notebook, give us ideas as to the short run, in- April, 2007, 3. termediate run and long-run imple- Roberts, Mark, “In Memoriam: Dr. Al- mentations of the selected goals. fred Robert Roberts, Academy co- Goals should be ranked Good or Very founder,” Accounting Historians Note- Good and should be classified into: a book, April 2007, 1-2. 1 to 3 year frame, a 4-6 year frame, Vangermeersch, Richard, “In Memory of and a 7 to 10 year frame. Al Roberts,” Accounting Historian I have a strong vested interest in be- Notebook, April, 2007, 3. ing able to attend the 50th Anniversary

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Zeff, Stephen et al, “Committee on Ac- ing its procedures for handling such counting History,” Accounting Review: requests. Sue Haka, the incoming Supplement to Vol. LXV, 1970, 52-64. president of the AAA, will work with Okano and McWatters on the issue. ACADEMY OF ACCOUNTING HIS- McKinney wondered if the Academy is TORIANS seeking affiliation with other groups BUSINESS MEETING in other countries. Previts knew of MINUTES no others, though it could be dis- August 3, 2008 cussed. Of the approximately 250 Held at 2008 annual meeting of the Academy individual members, the American Accounting Association, largest group is in the US, with a at the Hilton Anaheim, Anaheim, Cal- number of other countries having fornia about 25 each.

McKinney expressed concern that NB: Due to the short time available for the Academy would become too US- this meeting, some reports were submit- centric and hoped it would remain ted in advance; they are so noted below. international. Previts was concerned The meeting convened at 7:05 PM. about the Academy’s capacity and Present: Hiroshi Okano (president, noted that the memo of understand- chair), Tae-Sik Ahn, Marcia Annisette, ing with the AAA would be non- Andrea Cilloni, Rich Criscione, Dick binding and non-exclusive. Merino Edwards, Dale Flesher, Giuseppe Ga- noted the large number of interna- lassi, Sofian Harahap, Joan Hollister, tional meetings and thought it im- Dan Jensen, Hanna Karunsaari, Eiichiro portant to have a strong US base, Kudo, Yvette Lazdowski, Yoshinao Ma- too. Previts noted any arrangement tsumoto, Alan Mayper, Jim McKinney, with the AAA would not threaten the Cheryl McWatters, Barbara Merino, AAH’s 501(c)3 status and that this is Stephanie Moussalli, Lee Parker, Gary a good time, as Sue Haka will push Previts, Jennifer Reynolds-Moehrle, John for it. Rigsby, Bob Russ, Massimo Sargiacomo, McKinney concurred on the advan- Sally Schultz, Don Tidrick, Richard tages of a memo of understanding Vangermeersch. Guest: Royce Kurtz with the AAA but thought we should Approval of minutes of meeting of April attempt to do the same with organi- 12, 2008: Flesher moved to ap- zations in other countries. Vanger- prove. McKinney seconded. Car- meersch asked what would be the ried unanimously. downside of a memo with the AAA as long as it was not exclusive. Jen- Discussion of letter proposing a Memo- sen noted the memo, while nonbind- randum of Understanding between the ing, had considerable advantages, Academy and the American Accounting especially in major practical support Association. for conferences. Okano noted that Previts announced the AAA Execu- the accounting societies of East nd tive Committee had received a 2 Asia, e.g., China, Korea, Japan, and request for a memo of understand- Indonesia, might offer possibilities ing, from the Accounting Society of (Continued on page 12) China. The AAA is now consider-

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