A “New deal” for the profession: The expansion of the committee on accounting practice

1. A “New deal” for the profession: The expansion of the committee on accounting practice AUTHOR: DOMINIC DETZEN, VRIJE UNIVERSITEIT AMSTERDAM DISCUSSANT’S COMMENTS BY RUSSELL A. EVANS, QUEEN’S SCHOOL OF BUSINESS

2. FOCUSES ON EVENTS LEADING UP TO EXPANSION OF CAP IN 1938 • PERIOD FOCUS IS POST MARKET CRASH(1929-1939) • INSTITUTIONAL PLAYERS – AIA, NYSE, SEC, AAA • PRESSURE ON THE PROFESSION RESULTED IN CERTAIN ACTIONS • RECITES THE HISTORY OF THE FIRST ACCOUNTING PRINCIPLES • THE DEBATE BETWEEN FLEXIBILITY AND UNIFORMITY OF REPORTING SHORT SUMMARY OF THE PAPER

3. WRITING IS CONCISE AND SUCCINT • THE TOPIC IS PARTICULARLY RELEVANT IN CURRENT CLIMATE • HISTORIES OF SEC, AAA AND AIA ARE FASCINATING • SELF INTEREST NOT NECESSARILY MONETARY - VALUES • SEC HAD THE OPPORTUNITY TO SET THE PRINCIPLES • THE TURMOIL OF THE GREAT DEPRESSION AND THE ITERATIONS OF ACCOUNTING PRINCIPLES – VALUABLE TO LOOK AT • FRAMEWORK: VALUABLE TO ANALYSIS IN ACCOUNTING POSITIVE TAKEAWAYS

4. OCTOBER 29, 1929 – STOCK MARKET CRASH (BLACK TUESDAY) • GREAT DEPRESSION – WORLDWIDE • 2007 – 2009 – GREAT RECESSION (EFFECTS STILL BEING SEEN) • BOTH LED TO LEGISLATION TO PREVENT RECURRANCE – SECURITIES ACTS 1933, 1934 AND GLASS-STEAGALL, LIMITS ON SHORT SELLING • THE PUSH FOR DEREGULATION IS STILL HAPPENING • WEALTH GAP WIDENING – SIMILAR TO 1928-1929 PARALLELS – 1929 TO 2008

5. SOURCE: http://en.wikipedia.org/wiki/Great_Depression

6. SOURCES: http://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States http://mrortlieb.weebly.com/causes-of-the-great-depression.html

7. NEW YORK STOCK EXCHANGE (NYSE) • EST. 1817, NATIONAL SECURITIES EXCHANGE - 1934 • SECURITY AND EXCHANGE COMMISSION (SEC) • FOUNDED AFTER SECURITIES ACTS OF 1933, 1934 • AMERICAN ACCOUNTING ASSOCIATION (AAA) • FOUNDED IN 1916 – CURRENT NAME ADOPTED 1936 • AMERICAN INSTITUTE OF ACCOUNTANTS (AIA) • EST. 1887 – AIA FROM 1917-57, CURRENTLY AICPA INSTITUTIONAL PLAYERS

8. COMMITTEE ON ACCOUNTING PROCEDURES (CAP) – FIRST ATTEMPT TO ESTABLISH PRINCIPLES • CAP BECAME ACCOUNTING PRINCIPLES BOARD WHICH THEN BECAME FINANCIAL ACCOUNTING STANDARDS BOARD • THE FIRST CAP PRINCIPLES WERE NOT MANDATORY, LARGELY CONSIDERED A FAILURE • INSTITUTIONAL PRESSURES LED TO THE CREATION OF CAP ACCOUNTING PRINCIPLES

9. ORGANIZATIONAL FIELD (GREENWOOD, SUDDABY AND HININGS, 2002) – GOOD ANALYSIS TOOL FOR ACCOUNTING PROFESSIONALS IN A PARTICULAR ENVIRONMENT • DIFFERENT ITERATIONS OF ‘FIELD’ IN ACCOUNTING RESEARCH • STRATEGIC RESPONSES TO INSTITUTIONAL PRESSURES (OLIVER, 1991) – IMPORTANT FOR THE TIME PERIOD DISCUSSED • INSTITUTIONAL THEORY IN ACCOUNTING THEORETICAL FRAMEWORK

10. BETTER EXPLANATION OF THE SPECIFIC THEORIES YOU ARE USING • REASONING EXPLAINED AROUND THEORY CHOICES • BETTER INTEGRATION OF THEORY WITH FINDINGS (REPORTING) • LITERATURE REVIEW OF STUDIES THAT USE THESE THEORIES • EXPAND ANALYSIS OF FINDINGS IN DISCUSSION SECTION • INCLUDE CAVEATS FOR USING THESE THEORIES AREAS FOR THEORY IMPROVEMENT

11. EMPHASIZE THE IMPORTANCE TO US TODAY • A LOT OF ‘REPORTING’ WITHOUT CRITICAL EYE • RELIANCE ON SINGLE SOURCES TO DRAW CONCLUSIONS • LIMIT USE OF QUOTATIONS • EXPAND YOUR REASONING ON SOME STATEMENTS (PG 9-10) • MORE TIME EXPLAINING THE ‘VALUES’ OF THE PROFESSION • DISCUSSION CONCERNING AAA COULD BE EXPANDED • BE CRITICAL OF SOURCES, ACCEPTING THEM AS TRUTH • DISCUSSION IS REPETITIVE – SHOULD BE THEORETICAL ANALYSIS • EXPLAIN CONTRIBUTIONS MORE THOROUGHLY • MARXIAN AND WEBERIAN REFERENCE PG 31 - CONFUSING OTHER GENERAL CRITIQUES

12. ENJOYED READING • THE ERA THAT THIS TAKES PLACE IS IMPORTANT AND INTERESTING • HISTORY OF THIS TIME FOR ACCOUNTING IS FASCINATING • JUST NEED TO ALIGN WITH THEORY MORE TO MAKE THE PAPER MORE OF A CONTRIBUTION FINAL COMMENTS

13. Thank you