Edward N. Coffman

A HISTORY OF THE ACADEMY OF ACCOUNTING HISTORIANS: 1989–1998

This paper traces the evolution of The Academy of Accounting Historians from its formation in 1973 through 1988. The Academy has evolved from an idea to an important international organization.

FAIR VALUE CAPITALIZATION OF MORTGAGE LOAN SERVICING RIGHTS

Abstract This study examines whether the capitalization of mortgage loan servicing rights (MSRs) is consistent with FASB’s objective of fair value accounting. The FASB issued SFAS No. 122 , “Accounting for Mortgage Servicing Rights, an amendment of FASB Statement No. 65 ” with the prescription that the MSRs be capitalized at their fair value. Fair value would imply that only servicing related firm characteristics influence the capitalization of MSRs. This study finds that several non-servicing related firm characteristics also exert a statistically significant influence on the capitalization of MSRs. As such, the evidence suggests that significant segments of the industry may have acted in a way that was at odds with the FASB’s stated objective of fair value capitalization.

Choice of accounting method by not-for-profit institutions accounting for investments by colleges and universities

Abstract This study reports a preliminary empirical investigation into the relation between the choice of investment accounting method used by colleges and universities and factors such as type of institution, endowment size and returns, and debt. Because these institutions use fund accounting, the effects of the choice of investment accounting method can reasonably be isolated from other accounting decisions. The results indicate that the selection of investment accounting method is influenced by type of institution, endowment size and returns, but not by debt covenants.

CORPORATE GOVERNANCE IN THE 19TH CENTURY: EVIDENCE FROM THE CHESAPEAKE AND OHIO CANAL COMPANY

Presenting evidence from a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), the paper shows that issues of corporate governance have existed since the first corporations were established in the U.S. The C&O used a stockholder review committee to review the annual report of the president and directors. The paper shows how the C&O stockholders used this committee to supplement the corporate governance structure. The corporate governance structure of the C&O is also viewed from a theoretical structure as espoused by Hart [1995].

THE STOCKHOLDER REVIEW COMMITTEE OF THE CHESAPEAKE AND OHIO CANAL COMPANY, 1828–1857: EVIDENCE OF CHANGES IN FINANCIAL REPORTING AND CORPORATE GOVERNANCE

Canal companies were among the first enterprises to be organized in the corporate form and to require large amounts of capital. This paper examines the stockholder review committee of a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), and discusses how the C&O used this corporate governance structure to monitor and improve financial management and operations. A major strength was the concern and dedication of the stockholders to the company, while a major weakness was the political control exerted by the State of Maryland. The paper provides an historical perspective on corporate governance in the 19th century. This research contributes to the literature by providing detailed workings and practices of a stockholder review committee. The paper documents corporate governance efforts in archival sources that provide an early example of accountability required in a corporate charter and the manner in which the stockholders carried out this responsibility.

WRITING AN ACCOUNTING OR BUSINESS HISTORY: NOTES TOWARD A METHODOLOGY

Historical research in accounting and business includes many subject areas, including the writing of histories of accounting and business firms. Each subject area of historical research must be undertaken by utilizing appropriate research methodology. In this article, a research methodology is presented to assist those interested in writing an accounting or business history. Of all kinds of writing, that of preparing an accounting or business history is the one, in the opinion of the authors, that requires the most patience, fortitude, and attention to detail. Moreover, it is the one that historians often avoid because it has the potential of introducing between the writer and subject a bureaucratic barrier that unless approached skillfully and diplo- matically can scuttle the best intentions of the best historian. A number of histories of accounting and business firms have been written. Examples would be Arthur Andersen & Co.s (1974) The First Sixty Years, 1913-1973, Joness (1981) Accoun- tancy and the British Economy 1840-1980: The Evolution of Ernst & Whinney, Wises (1982) Peat, Marwick, Mitchell & Co.: 85 Years, Swansons (1972) Touche Ross: A Biography, and Roberts (1983) ETHYL: A History of the Corporation and the People Who Made It. Basically there are two categories of accounting and busi- ness histories. The first and least complex are those that center on companies that no longer exist and whose executives and employees are deceased. The writers task in preparing histories such as these revolves primarily around gathering extant data, including peripheral materials of how the company interfaced with other businesses of the time. Next the job is to assimilate thesc data, arrive at conclusions concerning the company, and

Teaching foreign currency translation: A flowchart approach

Abstract This paper briefly discusses the major aspects of FASB Statement No. 52 and presents a flowchart designed to assist accounting instructors in teaching the accounting and reporting requirements for foreign currency translations.

In Memory of Marshall S. Armstrong: The First Chairman of the Financial Accounting Standards Board

This paper discusses the contributions of Marshall S. Armstrong to accounting and the accounting standard-setting process as the first Chairman of the Financial Accounting Standards Board (FASB). The paper reflects on Armstrongs leadership roles in public accounting and professional organizations including the American Institute of CPAs and the FASB. The paper further comments on how Armstrongs personal qualities such as dedication, confidence, and chivalrous approach to issues contributed to the success of the FASB in its early years. Marshall Armstrong passed away on October 23, 2005.