Understanding the Sociology of the Accounting Profession : The Case of Australia

This book presents the first non-European and non-North American comprehensive study explaining failures of key merger attempts by Australia’s two leading accounting bodies. It employs two complementary theoretical constructs namely, boundary work and exclusiveness versus market control, to explain the maintenance of professional boundaries in the Australian accounting profession. In doing so, it illustrates key historical developments in Australia’s society, economy and business world towards shaping the present structure and operations of the accounting profession, and the remaining professional bodies at the national level. Acknowledgments 5 Contents 6 List of Tables 12 1 Introduction 14 1.1 Research Statement 14 1.2 Book Context and Background 17 1.2.1 Features of the Australian Accounting Profession: Regionalism, Duplication and Unification 18 1.2.2 Emergence of Two Professional Bodies: The Society and the Institute 19 1.3 Four Unsuccessful Merger Attempts 21 1.3.1 Background to the Merger Attempts 23 1.3.2 First Merger Attempt 23 1.3.3 Second Merger Attempt 24 1.3.4 Third Merger Attempt 24 1.3.5 Fourth Merger Attempt 25 1.4 Scenario for Investigation 25 1.5 Period Selection 26 1.6 Motivation and Contributions 26 1.7 Objectives and Research Questions 27 1.7.1 Research Objective 27 1.7.2 Research Questions 28 1.8 Literature Review and Identification of Research Gap 28 1.9 Conceptual Framework 29 1.10 Methodology and Data Collection Methods 31 1.10.1 Archives and Written Documents 32 1.10.2 Oral History 33 1.10.3 Analysis 33 1.11 Book Limitations 34 1.12 Summary 35 1.12.1 Book Structure 35 References 36 2 Sociology of the Professions and Accounting 43 2.1 Introduction 43 2.2 Professions and Professionalisation 44 2.3 Approaches to the Study of Professions 47 2.3.1 Functionalist 47 2.3.2 Interactionist 48 2.3.3 Critical 49 2.4 Accounting Profession 50 2.5 Themes in the Professionalisation of Accounting 52 2.5.1 State Influence 52 2.5.2 Closure Through Imperialism and Colonial Bodies 56 2.5.3 Closure Based on Racism, Gender and Social Class 58 2.6 Conclusion 61 References 62 3 Examining the Accounting Profession—Development, Structures and Operations 65 3.1 Introduction 65 3.2 Australian Studies 66 3.3 Mergers Between Professional Associations—Case of the UK and Canada 78 3.3.1 Britain’s Merger Attempts 79 3.3.2 Canada’s Merger Attempts 86 3.4 Conclusion 89 References 91 4 Research Methodology: Understanding Accounting History Through Critical and Interpretative Research 95 4.1 Introduction 96 4.2 Research Methodology in Accounting History Research 97 4.3 Data Collection from Archives and Written Documents 101 4.4 Data Collection: Oral History Interviews 108 4.5 Conclusion 111 References 113 5 Understanding the Failed Merger Attempts Through Theoretical Frameworks 115 5.1 Introduction 115 5.2 Boundary Work 116 5.3 Exclusivity Versus Market Control 126 5.4 Conclusion 131 References 132 6 The First Attempt to Unite the Dominant Professional Accounting Associations 137 6.1 Introduction 137 6.2 Background Context 138 6.2.1 Background to the Australian Accounting Profession 138 6.2.2 Pre-1960s 139 6.2.3 Developments During the 1960s 141 6.2.4 Status of the Society Members 142 6.2.5 Accountants’ Education Policy Reforms 145 6.2.6 Registration of Accountants 146 6.2.7 Comparison of Both Bodies 149 6.2.8 Joint Activities 151 6.3 The Merger Proposal and Outcome 153 6.4 Discussion and Analysis 166 6.4.1 Reasons for Mounting the Merger Attempt 167 6.4.2 Strategies Adopted by Both Bodies in Merger Attempt 170 6.4.3 Reasons for Merger Attempt Failure 172 6.4.4 Reactions of Various Stakeholders 178 6.5 Conclusion 178 References 179 7 The Second Attempt to Unite the Dominant Professional Accounting Associations 187 7.1 Introduction 187 7.2 Background 188 7.2.1 The Society Failed to Give Status to Its Members in Public Practice 190 7.2.2 Joint Work 191 7.2.3 The Institute of Affiliate Accountants 192 7.2.4 Financial Situation of Both Bodies 193 7.2.5 Membership of Both Bodies 195 7.3 The Merger Proposal 202 7.3.1 Further Progress on Merger 207 7.3.2 Australian National Opinion Poll Survey 211 7.3.3 Integration Forum and Attempts to Gain Support 212 7.3.4 Final Moves 214 7.4 Discussion and Analysis 221 7.4.1 Reasons for Mounting the Merger Attempt 221 7.4.2 Strategies Adopted by Both Bodies in the Merger Attempt 224 7.4.3 Reasons for Merger Attempt Failure 227 7.4.4 Reactions of Various Stakeholders 236 7.5 Conclusion 237 References 238 8 The Third Attempt to Unite the Dominant Professional Accounting Associations 245 8.1 Introduction 245 8.2 Background 246 8.2.1 Joint Work 248 8.2.2 Membership of Both Bodies 249 8.2.3 Financial Position 250 8.2.4 Professional Branding 252 8.2.5 Financial Crisis and Corporate Collapses 254 8.3 Merger Talks 255 8.3.1 First Merger Talks 256 8.3.2 First Merger Talk Failure 260 8.3.3 Second Merger Talks 263 8.3.4 Merger Proposal, Vote and Failure 270 8.3.5 Post Third Merger Attempt Failure 275 8.4 Discussion and Analysis 276 8.4.1 Reasons for Mounting the Merger Attempt 276 8.4.2 Strategies Adopted by Both Bodies in the Merger Attempt 279 8.4.3 Reasons for the Merger Attempt Failure 281 8.4.4 Reactions of Various Stakeholders 287 8.5 Conclusion 288 References 289 9 The Last Attempt to Unite the Dominant Professional Accounting Associations 298 9.1 Introduction 298 9.1.1 Background and Context 299 9.1.2 Society and Institute Developments 301 9.1.3 Joint Work 303 9.1.4 Membership and Financial Situation 304 9.2 Merger Attempt 308 9.2.1 Opposition to the Merger Attempt 316 9.2.2 Merger Process 319 9.2.3 Merger Proposal Vote 320 9.3 Discussion and Analysis 321 9.3.1 Reasons for Mounting the Merger Attempt 321 9.3.2 Strategies Adopted by Both Bodies in the Merger Attempt 322 9.4 Reasons for Merger Attempt Failure 324 9.4.1 Reactions of Various Stakeholders 327 9.5 Conclusion 328 References 329 10 Similarities and Differences Across All Merger Attempts 333 10.1 Introduction 333 10.2 Comparative Analysis of Responses to the Four Research Questions 335 10.3 Similarities and Differences Across the Four Merger Attempts 340 10.3.1 Joint Work 341 10.3.2 Decrease in the Institute’s Members in Public Practice 342 10.3.3 Official Rationale and Objectives 343 10.3.4 Society Members’ Strong Support and Institute Members’ Opposition 345 10.4 Conclusion 346 References 347 11 Learnings from Merger Attempts: Practical and Theoretical Implications 352 11.1 Introduction 352 11.2 Summary of the Book 352 11.3 Long-Term Ramifications of the Failure of the Merger Attempts 362 11.4 Broader Public Interest Perspectives on the Failure to Unify the Profession 366 11.5 Implications for the Application of Theory 368 11.6 Limitations and Suggestions for Further Research 370 11.7 Conclusion 370 References 374 Appendix A1–A4: Accounting Bodies, Formation, Mergers and Dissolutions 380 A1: Accounting Bodies Formed Before 1901 380 A2: Parent Bodies of the Society 381 A3: Parent Bodies of Institute 382 A4: All Accounting Bodies Formed in Australia 383 Index 390