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Transfer prices are the monetary values attaching to internal transactions between divisions of a company and can be defined in both a narrow and a broader sense. The narrow definition relates only to the value of trade transactions, while the broader one covers trade and non‐trade transactions such as fees for the transfer of patents and technology (Plasschaert, 1979, ). The narrow definition of transfer prices represents the most obvious type of inter‐divisional relationship.

To the extent that management accounting is based on neo‐classical economics, all decision‐making is assumed to be rational, aimed at utility or profit maximisation and all circumstances influencing decisions are accepted as stationary. The approach excludes all social, cultural or historical considerations and is based on perfect information that is freely available. Neo‐classical economics further assumes that minimum government intervention, which is regulated by competition, will result in maximum benefit for society as a whole. This paper aims to determine the extent to which management accounting theory has been based on these limiting assumptions and finds that emerging management accounting theory is increasingly based on alternative, more liberating foundations. This situation is in contrast to management accounting education in South Africa, which remains almost entirely based on neo‐classical economics.

Now that debt has replaced equity as the preferred source of finance for many UK companies, the correct calculation of the cost of debt assumes even greater importance than it has done formerly. While financial management textbooks are in agreement on how to calculate the pre‐tax cost of debt, there is much less agreement on how to calculate the after tax cost of debt. The different approaches taken by different authors leave students and practitioners confused and unsure as to how they should proceed. This article explores the calculation of the after tax cost of debt in order to help both students and practitioners to understand the interaction of tax and debt in the current UK environment and to be aware of the limitations of the various simplifications which are made, explicitly or implicitly, in the textbooks.

Outlines the history of accounting in China and reviews the literature published in English on the full range of Chinese accounting issues. Summarizes the contents of three books, refers to sections in other books and analyses journal articles by period, journal, research topic and research method. Argues that this accounting research has historical, academic and practical value,believes it will continue to improve and calls for greater use of more rigid research methodologies in this area.

The resurgence of interest in public sector accounting has been evident in the significant growth of the literature concerning both developed and developing countries. Literature reviews in the area, however, have only focused on the former thus leaving a gap which has been overlooked for some time. This paper begins to respond to this lack in the literature by critically assessing research on public sector accounting and financial management in developing countries. The paper elaborates the various views expressed by writers in the field and also identifies omissions in terms of themes, methodologies, and methods. In particular, we argue that most of the mainly non‐empirical studies in the literature have been influenced to a very large extent by development economics thinking (including theories the relevance of which have been significantly questioned in that discipline). We conclude by offering some suggestions for future research in the area.

Outlines research on the factors which reduce stock market efficiency and the particular characteristics of the Athens stock exchange (Greece). Uses 1988‐1994 Greek monthly returns data for share actively traded during the period to test for random walk behaviour in share prices. Explains the methodology, which is based on Lo and Mckinlay’s (1988) variance ratio test procedure and Robinson’s (1991) test for fractional integration; and presents the results which support the random walk hypothesis, i.e. suggest weak‐form efficiency. Notes inconsistency with some previous research on the Athens stock exchange and other emerging stock markets, but consistent with the idea that recent institutional changes have succeeded in increasing efficiency.

Suggests that most managers (other than those in marketing) take the view that too much money is spent on marketing. Adumbrates that the accountant may be able to contribute to improved decision making in marketing with regard to expenditure as an investment outlay rather than current expenses. Stresses, herein, that the concern for accounting is with marketing assets and their intangibility. Discusses further assets, valuation and investment and portrays these with the aid of tables and figures. Sums up by saying that a strong case can be made for recognizing many examples of marketing outlay as investments in assets rather than current operating expenses, showing new light on attitudes towards marketing decision‐making and financial reporting.

Culture has important influence on accounting and disclosure practices. This paper furthers this cultural research and accounting classification schemes in general. To examine the relationship between culture and accounting models, hypothesized cultural pairings of countries within Asia are constructed and tested by rank‐wise comparisons of observed accounting and reporting practices with all possible pairs. The analysis provides confirmation of relationships for two of the six hypothesized pairs using three approaches. There appears to be a high correspondence in the accounting practices within certain pairs of Asian countries sharing common cultural origins. Further, through exploratory Q‐factor analysis and cluster analysis, groupings of countries within Asia are identified, on the basis of observed accounting practices. This again provides evidence that the cultural diversity of Asia may contribute to differences in accounting and reporting practices. A limited interpretation of the resultant groupings is provided.

The present research explores capital requirement models used in medium‐size, private construction firms. The decision‐maker of a contracting firm can implement a cash flow forecasting model as an early warning system by using a model to identify likely cash‐flow problems in advance of the occurrence of these difficulties. Arrangements for acquiring any needed funds from other sources can then be made to avoid the possibility of financial problems in the corporation. In the present research, a model for financial decisionmaking is developed which, as demonstrated in a case study, provides a method of solving borrowing decision problems. The model includes the ability to evaluate qualitative and fuzzy circumstances. The model also assists in the selection of sources of funding, taking into consideration the capital structure ratio, the period of cash requirements, the borrowing limits and the tax conditions of the firm. The purpose of the model is to provide the decision‐maker with a tool kit to analyse her/his financial options.