Article: Management accounting as a social control for privatisation Journal: International Journal of Economics and Accounting (IJEA) 2012 Vol.3 No.2 pp.133 - 147 Abstract: During the past 50 years micro-economists have argued with practicing accountants about the need for uniformity and uses of current market values in balance sheets. This article argues against this economic authoritarianism, seeking instead to follow the evolution of accounting reporting practice over 350 years. This has much in common with the nature of democratically induced business accountability in the modern era. The article discusses the effects of 1990s privatisation in Australia and challenges whether the benefits of achieving fiscal and political goals in economics outweigh the social costs of a redistribution of wealth away from citizens. Should public sector accounting standards and financial reports be used to justify disclosure in terms of government policies for the re-distribution of wealth? The recent economic turmoil that has focused on ailing economies, company collapses and falling markets brings economic policies into question and this socio-economic phenomenon is addressed here together with traditional foundations of financial accounting for recognition of bargained rights and associated equities among participants. Inderscience Publishers - linking academia, business and industry through research

Title: Management accounting as a social control for privatisation

Authors: David Gowland; Max Aiken

Addresses: Faculty of Law and Management, School of Accounting, La Trobe University, Melbourne, Victoria 3086, Australia. ' School of Accounting and Law, RMIT University, GPO Box 2476V, Melbourne, Victoria, 3001, Australia

Abstract: During the past 50 years micro-economists have argued with practicing accountants about the need for uniformity and uses of current market values in balance sheets. This article argues against this economic authoritarianism, seeking instead to follow the evolution of accounting reporting practice over 350 years. This has much in common with the nature of democratically induced business accountability in the modern era. The article discusses the effects of 1990s privatisation in Australia and challenges whether the benefits of achieving fiscal and political goals in economics outweigh the social costs of a redistribution of wealth away from citizens. Should public sector accounting standards and financial reports be used to justify disclosure in terms of government policies for the re-distribution of wealth? The recent economic turmoil that has focused on ailing economies, company collapses and falling markets brings economic policies into question and this socio-economic phenomenon is addressed here together with traditional foundations of financial accounting for recognition of bargained rights and associated equities among participants.

Keywords: common good; conflict resolution; objectivity; privatisation; management accounting; social control; accounting reporting; business accountability; Australia; public sector; accounting standards; financial reporting; financial disclosure; government policies; redistribution of wealth; financial accounting.

DOI: 10.1504/IJEA.2012.048069

International Journal of Economics and Accounting, 2012 Vol.3 No.2, pp.133 - 147

Published online: 06 Aug 2014 *

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Title: Management accounting as a social control for privatisation

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