HUDA

C1L013024
InternationalClassofAccounting2013
WhatisCriticalAccounting?DefinitionsandRoles
[A]ccountingisanactivitywhichconventionallyinvolvesidentifying,collecting,describing,
recording,processingandcommunicatinginformationinfinancialtermsabouttheeconomiceventsof
anentity,togroupsandindividualswhohaveaneedorrighttotheinformation.Thisisusually
assumedtobefordecisionmakingpurposesandisalsoassumedtocontributetothesocialwelfareof
thenation.
Thedefinitionalertsustothetechnicalactivitiesofaccountingrecording,classifyingand
communicatinginformation;itmustberememberedhoweverthatthisactivityisnotobjectiveand
valuefree.Hence,thebroadroleofcriticalaccountingmightbeseenasonethatmakestransparentthe
assumptionsandtakenforgrantedvaluesthatliebehindaccounting.
Therearemanydiscussionsofwhattheprojectofcriticalaccountingmightbe, Thismeansthat
contextualdescriptionsarenecessarybutnotsufficientforcriticalaccounting.Evaluationmustmove
beyonddescriptionofcontext.
Criticalaccountingmustbequestioningoftheparticularpowerofanygrouptodefinewhatis
appropriate.(Itshouldnotbecontentioustoclaimthatinacapitalistsocietytheinterestsofcapitalare
alsolikelytohaveaparticularlydominantvoice.)
WhatistheRelevanceofAccounting?
Thesecondquestionraisediswhetheraccountingisatallimportant.Thisraisesthequestionof
whethertheroleofaccountingisofanyconsequenceinsocietalterms.Ifaccountingisofno
consequencethentheissueofwhattypeofcriticalaccountingwemightseektodeveloporuseis
immaterial.
AccountingeducationintheUKisalsoinsomefluxfollowingthedisbandingoftheBoardof
AccreditationofAccountingEducationalCourses(BAAEC),whichprovidedameansbywhich
exemptionsfromtheprofessionalqualificationcouldbegainedbyacademicstudies5.AlltheUK
professionalbodieshaverecentlyrevisitedtheirexaminationcontentandthereseemstobeaconstant
concernabouttheextenttowhichtheexaminationsaretestingtheappropriateskillsrequiredby
accountantsinpractice.
Accounting,thus,canbeseenasaproductandaproducerofmodernityandinthisrespectcanbeseen
tobeapowerfulelementintheprocessesofsteeringatbothasocietalandorganizationallevel.
Perhapsthisisonereasonwhyitpersistsandindeedseemstothrivedespitetheargumentsofits
decline.Interestingly,however,whilstaccountingandaccountantsareoftenreferredtoinpejorative
termsitistheideaoftheAuditSociety(Power,1997)thathascapturedmoredebateinwidersocial
andpoliticalcirclesintheUK.
EquallytheprogrammaticthrustoftheAuditSocietycanbeassociatedwithawayofthinkingthathas
beencalledAccountingLogic(Laughlin,1992).Thissees(a)thatforeveryentitytheuseoffinance
needstobeevaluatedintermsofsomemeasurableoutputsachievedandvalueaddedand(b)thatitis
possibletoundertakethisevaluationinandthroughthefinanceactuallyusedandreceived(Laughlin,
1992,p.4).
Thepowerofaccountinglogic,asisthecasefortheprogrammaticuseofaudit,liesintheextentto
whichitisvagueandmutableandeasilytransportedfromsituationtosituation.Initsprogrammatic

dimensionaccountinglogicispowerful,butitleavesthepossibilityoftheadoptionofaccounting
technologiesaseverpossibleandinmanywaysappealing.
Inessencethedistinctionbetweentheprogrammaticwayofthinkingofaccountinglogicandits
operationalizationthroughtheuseofaccountingtechnologiesiskey.
AccountingLogicandtheControlofthePublicServices:TheProgrammaticFocus
Theuseofaccountinglogicinitsprogrammaticsensecanbeillustratedthroughsomeoftheinitiatives
thatformedtheNPM(Hood,1991,1995).Aswellasillustratingtheuseofaccountinglogicthis
exampleillustratesanareawhereacademicsfromEnglandhaveovertheyearsbeenveryactivein
developingresearchanditremainsanareathatdemandsagooddealofinterest.
NPMisnotaunitaryormonolithicconceptbutithasbeenpremisedbythegeneralprogrammatic
assumptionthatinputsshouldbelinkedthroughtooutputsandthattheyshouldbemeasuredin
monetaryterms.
TheUseofAccountinginPFI:ProgrammesandTechnologiesinAction
Thepowerofaccountingasamalleableandmutablesteeringdevicecanbeillustratedbyashort
considerationofthePrivateFinanceInitiative(PFI)intheNationalHealthService(NHS)intheUK.
PFIisoneofthemostrecentattemptstocontrolthepublicservicesandisonethatismovingaway
fromthemanagementofdaytodayresourcesandmoretowardsthecontrolofcapitalexpenditure.
CriticalAccounting:WhyWeNeedIt
TheconsiderationoftheuseofaccountinginthecontextofNPMaboveshowsthataccounting
technologiesandaccountinglogicareimportantresourcesinthecontroloforganizationsandin
producingtherealitiesofthoseorganizations.Accountingmaybeusefulinthisrespectbut
neverthelessthisdoesnotmeanitisnecessarilybeneficialtosocietyingeneral.Neithercanaccounting
beignoredwehavetofindwaysofensuringthatourscarceresourcesareusedwiselyanditcouldbe
arguedtobeunethicalnottodothis.
Weneedtoensuretheuseofaccountingdoesnotrepresentcertaininterestsattheexpenseofothers.
Thiscanbeachievedbyseekingsomewayofreembeddingaccountinginformationintothecontextin
whichitistobeusedandinwhichdecisionsaretobemade. Italsomeansthattoallowthese
discussionsanddecisionstobemadeknowledgeablywehavetoensurethatcriticalaccounting
researchmakesplaintheintereststhatarerepresentedbytheaccountingfigurespresented
CriticalAccountingToday
ThefirstpointtobeemphasizedisthatthereisahomeforcriticalresearchintheUK;ithasnotbeen
marginalized,asitseemstobethecaseinsomeothergeographiclocationswhereothermodelsof
academicworkprevalent.Itisperfectlyrespectabletoengageinworkthatexploressocialand
economicissues;theinterestsoftheprofessionarechallenged;theimpactoffinancialcontrolsinthe
contextofthepublicserviceshavebeendebatedatlength;thegovernanceofourfirmshasbeen
debatedandconcernshavebeenraisedinthecontextofhowaccountingcontrolsareusedin
developingeconomies.
Thedegreetowhichcriticalworkhasawiderimpactonthesocietyinwhichweliveisproblematicto
judge.First,andasarguedearlier,powerrelationsmakethisdifficulttoachieve.Second,theemphasis
intoomuchofthenonpositivisticworkthattakesplaceisupongeneratingdescriptionand
understandingratherthandirectcritique.Forbothofthereasonsaboveitbecomesdifficulttothinkof
manyexamplesofhowcriticalaccountingresearchhasbeendirectlysuccessfulinchangingpolicyor
practices.Whilstnotwishingtounderplaytheimportanceofdescriptioninraising