Richard P. Brief

The Origin and Evolution of Nineteenth-Century Asset Accounting

The methods used to account for business assets in Britain and the United States during the nineteenth century are here examined in a context of interplay between “internal economic criteria” and “external constraints.”

Accounting Valuation Models: A Short Primer

This note discusses basic issues related to residual income valuation (RIV) and abnormal earnings growth (AEG) models but has only scratched the surface of a complex subject. What clearly emerges from this ‘primer’ is the conclusion that AEG is a more complex valuation model than RIV. This complexity concerns both the mechanics and interpretation of AEG compared to RIV. Furthermore, a study by Penman (2005) raises a question about the usefulness of AEG compared to RIV. His comparisons between RIV and AEG are rather remarkable and suggest that RIV gives estimates of value which are more accurate and less variable than estimates based on AEG. Clearly, these results need further study.

Accounting Error as a Factor in Business History

The questions and issues that arise in thinking about the role played by accounting in business history are complex. While accounting policies and practices have economic consequences, they also are a product of decisions made by individuals and organizations in their own self-interest. Cause and effect relationships in accounting are, therefore, difficult to identify. Paradoxically, business and economic historians have not paid much attention to the details of accounting which is often seen as a technical craft. While it is not customary to regard accounting data as information in the sense that data can be translated into estimates of parameters of interest, a formal error concept is a useful one because it makes the case against viewing accounting as neutral and mechanistic quite compelling. Even if accounting is neutral and accounting choices do not reflect self-interest, accounting errors can influence behavior. The purpose of this paper is to reflect on the nature of error in accounting by using st...

THE ACCOUNTANT'S RESPONSIBILITY FOR DISCLOSING BRIBERY: AN HISTORICAL NOTE

In the late nineteenth century The Accountant reported on a case where the auditors looked at the mattery of bribery “straight in the face” and disclosed the illegal payments in the audit certificate. However, subsequent discussion of the accountants responsibility for disclosing bribery in an 1899 lecture, “Secret Profits,” showed that there was no unanimity of opinion on the accountants responsibility in this area. The problem is obviously a continuing one.