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The evolution of International Financial Reporting Standards (IFRS) was nurtured by economists and accountants loyal to the philosophical basis of what is often referred to as “Western” market economies, being classical and neoclassical contracting theories. The purpose of this paper is to illustrate how a particular Asian cultural attribute (guānxì ) impacts on the efficacy of fair value measurement.

Using a literature review and research of studies of the adoption of IFRS in China, studies of both guānxì and fair value in Chinese accounting research, this study unbundles Williamson’s governance structure and contracting theory to examine how guānxì is positioned orthogonally to fair value (market-oriented valuation) principles for financial reporting. This is followed by a case study of the events surrounding the collapse of China Medical Technologies.

Guānxì is integral to Asian economies and economic transactions. Resulting conditions, characterised by relational contracting, may not meet the qualitative characteristics of neutrality and faithful representation in fair value measurement of assets and liabilities. The same may be true when insider or “trusted party transaction” values prevail for large ticket transactions among entities in any jurisdiction.

Future research on the impact of guānxì may be constrained by its often hidden, and yet dynamic, character; and the varieties of its manifestations.

This study highlights how difficult it may be to achieve both comparability and relevance in the asset and liability recognition and measurement rules in Asian (and possibly also other) economies adopting accounting principles that are developed in a Western context.

The purpose of this paper is to identify the circumstances that gave rise to an adverse audit opinion by a New Zealand (Christchurch) accounting firm, Hicks and Ainger, on the annual financial report of the local firm, T.J. Edmonds Ltd, in 1976. In so doing, this study revealed not only previously undocumented issues surrounding major asset purchases but also the impact of key personalities before and after the adverse opinion decision.

The study is located within the Cultural Theory of History, to theorize the narratives within the wider contextual perspective. The issues surrounding the use of memory from such interviews are also considered. The key material offered in this study is sourced from a 2015 interview with the two key audit partners in this audit engagement.

The accounting standard on depreciation at that time, SSAP 3, had not been applied properly to the accounting treatment of four helicopters for wild deer operations, purchased a week before balance date. Neither the artificial suppression of profits by this purchase decision and accounting choice nor the fall in profits nor the adverse opinion, influenced share prices or shareholder perceptions long term.

The significance of this project is that it informs the appreciation of the importance of contextual understanding of a singular adverse audit opinion.

Accounting research has struggled with how ethnicity is to be understood in relation to concepts such as nation and nationality and how ethnicity may impact on accounting and auditing practices, behaviours, education and professional values. These themes are explored and developed in the papers presented in this special issue. In particular, the purpose of this paper is to explore the contrasting theoretical and methodological approaches reflected by the papers in the issue.

This is a reflective and analytical paper which explores how notions of ethnicity are conceived and operationalised in accounting research. The authors identified two distinctive analytic ordering processes evident within this AAAJ Special issue: Mary Douglas’ scheme of Grid and Group and the Pierre Bourdieu’s conceptual tools of field, capital and habitus.

The “Grid and Group” Culture Theory with Bourdieu’s theoretical tools evident in the papers provide powerful tools to explore the relationship between ethnicity and accounting both conceptually and empirically, suggesting that ethnicity can be deployed to reveal and challenge institutionalised racism. This paper highlights the potential to integrate elements of the “Grid and Group” Culture Theory and Bourdieu’s theoretical tools. The issue of ethnicity and the relationship between ethnicity and accounting should be more fruitfully explored in future.

The authors acknowledge the challenges and limitations of discussing the issue of ethnicity from any particular cultural perspective and recognise the implicit dominance of White Anglo centric perspectives within accounting research.

The papers presented in the special issue illustrate that the issue of ethnicity is complex and difficult to operationalise. This paper highlights the potential to move beyond the ad hoc application of theoretical and methodological concepts to operationalise coherent concepts which challenge and extend the authors’ understanding of accounting as a social and contextual practice. But to achieve this it is necessary to more clearly integrate theory, methodology, method and critique.

The purpose of this paper is to offer a Bourdieu-oriented study that investigates race discrimination when graduates of diverse ethnicities aspire to enter the accounting profession. This study illustrates the benefits of a careful and fine-grained operationalization of ethnicity for such a research project.

The cohort interviewed comprises 45 participants of 20 different ethnicities.

From this interview data, it appears that employers mostly favour “Pakeha” New Zealanders (the non-Maori ethnic majority group, mostly of British origin); those who migrated from China and East Asia are the most disfavoured; between them are those of ethnic minorities brought up in New Zealand and those who migrated from the Indian subcontinent and South Asia. Underneath the experience of discrimination is the operationalization of ten subtle factors, and a range of strategies adopted to overcome such factors, as further described in this study.

The findings may permit stakeholders, including professional bodies, employers, aspirant accountants, vocational counsellors, and those who have interests in promoting equality and meritocracy in the accounting profession, to formulate effective rules and structures to combat discrimination. It may also inform those in other professions seeking to lessen ethnic discrimination, and wider society.

The study fills a gap in the accounting literature by elaborating on the mechanisms of how ethnic minorities are discriminated against. It confirms that discrimination is suffered not only by the most salient ethnic groups, but by graduates of “Western” universities, of many and diverse ethnicities, all of whom suffer being perceived as “outsiders”.

This paper explores how ethnicity is implicated in an etic–emic understanding through day-to-day practices and how such practices meet external accountability demands. Addressing the broader question of how ethnicity presents in an accounting situation, it examines the mundane level responses to those accountability demands manifesting an operationalisation of the ethnicity of the people who make those responses.

The study followed ethnomethodology principles whereby one of the researchers acted both as an active member and as a researcher within a Salvation Army congregation in Manchester (UK), while the others acted as post-fieldwork reflectors.

The conceivers and guardians of an accountability system relating to the Zimbabwean-Mancunian Salvationist congregation see account giving practices as they appear (etic), not as they are thought and interiorised (emic). An etic–emic misunderstanding on both sides occurs in the situation of a practice variation in a formal accountability system. This is due to the collision of one ethnic group's emics with the emics of conceivers. Such day-to-day practices are thus shaped by ethnic orientations of the participants who operationalise the meeting of accountability demands. Hence, while ethnicity is operationalised in emic terms, accounting is seen as an etic construct. Possible variations between etic requirements and emic practices can realise this operationalisation.

The authors’ findings were based on one ethnic group's emic construction of accountability. Further research may extend this to multi-ethnic settings with multiple etic/emic combinations.

This study contributed to the debate on both epistemological and methodological issues in accountability. As it is ill-defined or neglected in the literature, the authors offer a working conceptualisation of ethnicity – an operating cultural unit being implicated in both accounting and accountability.

The purpose of this paper is to examine how the construct of ethnicity can best be determined for empirical analysis in accounting research, particularly in the Pacific region.

This paper reviews relevant sociological and accounting literature. In addition, it presents the results of a case study where “first language” was used as a proxy for ethnicity.

The results of the literature review present six different research approaches towards determining ethnicity. Furthermore, it is found that “first language” was a justifiable determinant of ethnicity in an accounting education study.

The determination of reliable and valid proxies for ethnicity in accounting research is important for researchers, including those whose objective is to associate ethnicity with learning and teaching outcomes, accounting and financial reporting activities or behaviours.

In the context of accounting research, the value of this study is its challenge to the notions that culture and ethnicity are not only homogenous but interchangeable and to offer a reflection on how ethnicity can be determined.

The purpose of this paper is to investigate whether ethnicity makes a difference to the level of respect given to teachers by tertiary accounting students. In particular, it examines whether ethnicity has an impact on students’ perceptions regarding their teachers’ attributes and behaviors, which in turn influences their respect for their teachers.

First year accounting students, both domestic and international, were surveyed in New Zealand, Australia and the UK, using a purpose-designed online questionnaire. “Ethnicity” was categorized according to first language, resulting in three categories: Home, Chinese and Other International. Student responses to quantitative questions regarding attributes and behaviors were analyzed using MANOVA and ANOVA. Open-ended questions provided further insight into student perceptions.

Regarding teachers’ attributes, statistically significant differences are seen between the ethnic groups in qualifications, classroom control and professional qualifications or work experience, but not in teachers’ behaviors. The open-ended questions provided student contributions regarding respect. These included “clarity” and “good English skills.”

This research contributes to debates over the impact of ethnic diversity in the classroom. It also contributes to the debate over the definition of the concept of “ethnicity.” A comparison between three countries is unusual; all have significant numbers of international students. Value is added through the findings, which challenge often-held assumptions regarding stereotypical “Chinese learners.” The findings will also assist teachers who have large numbers of international students in their classrooms.

This paper seeks to analyse accountability relationships developed since the introduction of reforms requiring nonprofit primary health organisations (PHOs) to discharge holistic accountability.

Case study data were obtained principally through semi‐structured interviews with PHOs and their key stakeholders, observation of formal and informal meetings, and primary and secondary documents.

While government strategy requires these PHOs to discharge holistic accountability, prior hierarchical‐based practices linger. A major impediment to securing holistic accountability is the failure of the new strategy to define clearly how the funder and provider should share accountability for improving their community's health. The implementation of holistic accountability was retarded when funders' propensity to control outcomes coincided with providers' lack of enthusiasm for embracing a greater range of stakeholders. The history and structure of individual PHOs was a key indicator of whether they discharged hierarchical or holistic accountability.

This case study research is context‐specific and may have limited applicability to other PHOs or jurisdictions. However, the study shows that when funders and providers build trust rather than depending on control, holistic accountability relationships can be developed.

Despite government intention that primary health care relationships will lead to holistic accountability, this will not occur until funders clearly define responsibilities and trust their service providers.

There is a paucity of research into government‐sponsored holistic accountability relationships with local nonprofit service providers. This research provides a unique contextual analysis of the perspectives of funders, providers and a wide group of stakeholders and the operationalisation of two different styles of accountability.