Andrea Mennicken, Michael Power Accounting and …eprints.lse.ac.uk/61660/1/__lse.ac.uk_storage_LIBRARY...Accounting and the Plasticity of Valuation Page 2 of 21 PRINTED FROM OXFORD

Andrea Mennicken, Michael Power

Accounting and the plasticity of valuation Book section

Original citation: Originally published in Mennicken, Andrea and Power, Michael (2015) Accounting and the plasticity of valuation. In: Antal , Berthoin Ariane, Hutter, Michael and Stark, David, (eds.) Moments of Valuation: Exploring Sites of Dissonance. Oxford University Press, Oxford, UK, pp. 208-228. ISBN 9780198702504 © 2015 Oxford University Press

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Accounting and the Plasticity of Valuation

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2015.All Rights Reserved. Under the terms of the l icence agreement, an individual user may print out a PDF of a single chapter of amonograph in OSO for personal use (for details see http://www.oxfordscholarship.com/page/privacy-policy). Subscriber: LondonSchool of Economics and Political Science; date: 10 April 2015

UniversityPressScholarshipOnline

OxfordScholarshipOnline

MomentsofValuation:ExploringSitesofDissonanceArianeBerthoinAntal,MichaelHutter,andDavidStark

Printpublicationdate:2015PrintISBN-13:9780198702504PublishedtoOxfordScholarshipOnline:March2015DOI:10.1093/acprof:oso/9780198702504.001.0001

AccountingandthePlasticityofValuation

AndreaMennickenMichaelPower

DOI:10.1093/acprof:oso/9780198702504.003.0011

AbstractandKeywords

Thischapterexploresexemplarymomentsofdissonanceandinnovationinaccountingvaluation.Examiningthecasesofvalue-addedaccounting,brandaccounting,fairvalueaccountingandimpairmenttesting,thischaptertracesdebatesandshowthataccountingvaluationis‘plastic’duetobothmethodologicalvariabilityandthedifferentdomainsofworththatgetregisteredwithinaccountingconceptsandtechniques.Accountingisbothapowerfulvehicleofeconomization,valorisingeconomicconstructionsofactorsandthings,andapracticewhichhasbeensignificantlydestabilizedbyprocessesoffinancialization,namelyideasandpracticesoffinancialeconomics.Theplasticityofaccountingshouldnotbereadasweakness.Thischapterconfrontstheapparentparadoxthatthepowerandreachofaccountingasapracticeoforderingandvalorisinghasneverbeengreaterthanatthetimeofcrisiswhenitscorepracticesofmeasurementandvaluationaremostcontestedandplural.


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Keywords:valuation,accounting,financialization,economization,fairvalue,plasticity

IntroductionInthemid1970sanewkindofaccountingstatementappeared—valueaddedaccounting.Promotedbyanaccountingprofessionalbodyin1975whichsoughttoreengineerthecorporatereport(AccountingStandardsSteeringCommittee[ASSC]1975),anumberofcompaniesengagedexperimentallyinproducingvalueaddedaccounts(Burchelletal.1985).Conventionalfinancialstatementswererearrangedsothat“‘valueadded’appearedasanindicatorofthevaluecreatedbytheactivitiesofanenterpriseinanumberofdifferentsites(privatecompanies,newspapers,governmentbodies,tradeunions,employerassociations,professionalaccountancybodies,etc.)”(Burchelletal.1985:385).Statementsofvalueaddedwerecreatedwhichwereaimedat“showinghowthebenefitsoftheeffortsofanenterprisearesharedbetweenemployees,providersofcapital,thestateandreinvestment”(1985:386).AsBurchelletal.(1985:387)highlight,theaccountingcategoryofvalueaddedwasnotonlypromotedasavehicleforinformationdisclosure.Itwasalsoputforwardasabasisfordeterminingrewardsattheleveloftheenterprise,anditappearedonseveraloccasionsinthecontextofpolicydiscussionsconcernedwiththeperformanceofBritishindustry.

Thisaccountinginnovationhaditsconditionsofpossibilityinadistinctivealignmentofthreekeyarenas:professionalconcernswiththenatureofaccounting;macro-economicconcernsaimedatmakingproductivityissuesmorevisible;andthepoliticalconcernsofaleftistgovernmentandthetradeunionswith“industrialdemocracy”(Müller-Jentsch2008).Despitethegreatvariabilityinvalue-addedaccounts,andtheirtechnicalambiguity,theycouldappealsimultaneouslytoanumberofdifferentactorswithdifferentagendas.Insodoing,valueaddedaccountingfunctionedasa(p.209) kindof“boundaryobject”(StarandGriesemer1989).AsStarandGriesemer(1989:393)wouldputit,valueaddedaccountswereplasticenoughtoadapttothedifferentlocalneedsandconstraintsofthepartiesemployingthem.Yet,atthesametime,theywererobustenoughtomaintainacommonidentityacrosssites(1989).However,thevalueaddedaccountingexperimentwasshortlived,andthealignmentofthedifferentarenasbegantobreakup—aprocesscompletedwiththeelectionofMargaretThatcherin1979.1

Thevalueaddedaccountingcaseperfectlyillustratesthethemeofthisvolumeandisanexemplificationofbothnewnessanddissonance.Thetemporarystabilityofvalueaddedaccountingwasitselfconditionedbyafragilealignmentofinterests,whichhungtogetherforawhilewithoutanyexplicitagreementorconsensus.Inthiscaseonemightsaythatmutualmisunderstandingcreatedcoordinationbenefits(Stark2009)—atleastforawhile.Valueaddedaccountingstatementseventuallydisappearedandtheirriseandfallcanberegardedasavaluationeventinaspecifictimeandplace.Theeventrevealsboththetemporalnatureofvaluation,itsdynamicsandcontingentpathovertime,andalsoitsspatiallocalization.Thevalueaddedaccountingeventtookplaceataspecificsite,inaparticularsocialspacemarkingoutadistinctivefieldofoperations.InBurchelletal.’s(1985:400)words,“thenecessityoftalkingaboutvalueaddedinaparticularwayaroseasaresultoftheconditionsthatmadethevalueaddedeventpossible”—conditionswhichBurchelletal.seektoencapsulatewithinthenotionofan“accountingconstellation”


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comprisinganetworkofintersectingvaluationpractices,processesandinstitutions(1985).Theconstellationconceptresemblesthatofassemblage(seetheintroductorychapterbyHutterandStarkinthisvolume),2whichalsoreferstoatemporarilystabilizedsetoflinkagesandpracticesformedbetweendiverseactors,agencies,activities,technologiesandideas.

Valueaddedaccountingwasaboveallanattempttorepresentanewkindofobjectinaccountingterms,namelythefirmasacooperativeendeavor.Thisefforttore-valuethenatureofthefirminvolvedtheuseofvalue-addedstatementsnotsimplyasamirrorofactivity,butasamechanismfortheproductionofanalternativereality,albeitwithintheexistingframeof(p.210) standardizedcorporatefinancialreporting.Thatrealityfailedtomaterialize,butthecaseshowshowaccountscanberegardedasconstrainedwaysofproducingfictions.Valueaddedaccountsneededtobegroundedinatransactionalreality—theywerenot“madeup”andneededtopayattentiontoacertaininstitutionalobligation.Buttheywerealsofictionalinthesenseofprojectinganewmodelofeconomiccooperationintheproductionofsurplus.Inthissensewecanthinkofaccountingvaluationashavingaqualityofplasticity,namelybeingbothsimultaneouslystableandunstable.Itisthenatureofthisplasticityanditsdualpropertieswhichisthesubjectofthischapter.

CarruthersandKim(2011:253)arguethat“theplasticityofvaluationis[…]apparentwitheveryaccountingrestatement,butsuchepisodesdonotsimplyreflectvaluation-gone-wrong.Rather,theyrevealhowmuchvalueisacontestedandprovisionaljudgmentwhosecomplexityliesburiedbeneathasurfaceofnumbersandquantification.”Inthischapter,weseektotrackspecificconflictsandtensionswithinaccountingvaluationastheybearonwiderquestionsofvalue.Indeed,wesuggestthatwhilevaluationpracticesmayeventuateinsinglefiguresforfurtherconsumptionandprocessing(Miller1992;Vollmer2007),theyaresustainedbyanapparatuswhichbecomesvisibleintimesofcrisisandwhosecomponentsareinherentlymalleableandcontestable.3Inshort,“economicvaluationprocessesareeminentlycontingent”(Fourcade2011).

Thechapterisstructuredasfollows.Inthenextsectionwediscusstheroleofaccountingintermsofitseconomizing(ÇalışkanandCallon2009,2010)effectsonentitiesandactors.Wedistinguishbetweeneconomizingasageneralmodeofvaluingineconomictermsandfinancializationasadistinctivemodeofeconomizing,drawingontheideasandpracticesoffinancialeconomics.Thisdistinctionenablesustosaythataccountingisplasticinthesensethatitisbothapowerfulandstablevehicleofeconomization,valorizingeconomicconstructionsofactorsandthings,andyetisalsoitselfapracticewhichhasbeensignificantlydestabilizedbyprocessesoffinancialization.

Buildingonourdiscussionoftheeconomizingroleofaccounting,weexplorethreehistoricalmomentsofdissonanceandinnovationinaccountingvaluation.First,weexaminetheeventofbrandaccountinginthe1980sandearly1990sintheUnitedKingdomandinvestigatethestrugglesinvolvedinthecreationofanewobjectofaccountingvaluation.Brandaccountingwasanattempttotransposevaluesfromthemarketingworldintothepre-existingframeofcorporatefinancialstatements,making


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brands,as(p.211) “intangible”sourcesofvalue,financiallyre-cognizableinaccounts.Second,wediscussthemorerecentcaseoffairvalueaccountingand,third,relatedeffortstostandardizeandstabilizethepracticeofassetimpairmenttesting.Thecaseoffairvalueaccountinggivesinsightintothedynamicsofanaspirationtomovefroma(historical)cost-basedvaluationsystemtoanaccountingsystembasedon(current)marketprice.Whilefairvalueaccountingaimsatthesystemicfinancializationoffinancialaccounting,weanalyzehowthisprocessrunsupagainstlimitsatthelevelofimpairmenttestingofassetvalues,wherenewfrictionsarecreatedwhichrevealunstableaccountsofworth.

Takingthesethreecaseswiththeopeningdiscussionofvalueaddedprovidesfourhistoricalmomentswhichdemonstratetheplasticityofaccounting,bothasapowerfulforceforeconomizingbutalsoasavehiclefordifferentandoftenfrictionalconceptionsofvalue.Thischaptershowsthataccountingresearchcanaddtothesociologyoffinanceandvaluationstudiesmorebroadlybyjointlynavigatingboththegeneralroleofaccountingasasourceofeconomizationandalsodelineatingthecomplexandcontestednatureofspecificaccountingvaluationpracticesassub-frictionswithinthesegeneraleconomizationprocesses.Inwhatfollows,weseektorevealtheproductivefrictionsinvolvedinaccountingvaluationasdifferentcalculativeframesareused,compared,putinrelationtoeachother(Stark2009,2011),andhowthisuncertaintyisonlyevertemporarilyeffaced.

AccountingandEconomizationTheopeningexampleofvalueaddedaccountingdemonstratesthataccountingstatementsarelessstableanddurablethanmaybecommonlyimagined.Thereisnoinstitutionallogicofaccountingassuch.Accountinghasnoessence,whichwouldtemptustoseeksuchalogic.AsHopwoodputsit,“accountingisnotimbuedwithpurpose,butitcanbemadepurposeful”(Hopwood1992).Yetaccountingprovidesoftenpowerfulnarrativesofeconomiclife(Hines1988)—perhapsthemostpowerful—whichexpandandspillintomanyotherdomainsandorganizations,changingthemintheprocessandchallengingexistingconfigurationsofvalue.Inthisrespectaccountingisbothavalorizingpractice(Vatin2013)whichpromotesandreproducesaconceptionofworth,asmuchasonewhichcontainsvaluations.Regardingtheformer,itisaforcefortheeconomization(seealsoÇalışkanandCallon2009,2010)ofentitiesandactivities.Accountingmakesitpossibletorendertherepresentationofentitiesandactivitiesineconomicterms,eventhoughitdoesthisinmanydifferentways(MillerandPower2013).Itisamechanismbywhichtheeconomizationoforganizationallifebecomeselaboratedandinstitutionalized,andwhichincreasinglyprovidesthedominant(p.212) narrativeofmarketrationalityatanorganizationalandatasocietallevel(CarruthersandEspeland1991;Weber1978),particularlysincethecollapseoftheSovietUnion.4Accountingpracticesoperationalizeandmaterializefictionsofefficiency,economy,“valueformoney”and“value-added”(Hines1988;Miller2001).

Specificaccountingvaluationsofassetsandliabilitiesareintertwinedwiththismoregeneralconstitutiveroleforaccounting.Therolesthataccountingplayswithin


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organizationsandsocietyco-emergewiththeeconomizedsocialrelationsthatinturnprovideitsrationalesandthatshapetheorganizationasanaccountingentity(Hopwood1986;MillerandPower2013).While“newmodesoffinancingandtheirrepresentationshavebroughtattentiontoaccounting’sdependencyonlegalpresumptionsoftheboundaryoftheenterprise”(Hopwood1992:127),accountingpracticesalsoenableanentitytobeobservedandconstitutedineconomicterms,particularlyinthepublicsector(Kurunmäki1999;Mennicken2013).

Thataccountingentitiesarefictionalandnetwork-effacingsuperimpositionsoncomplexorganizationsissuggestedbycompetingconceptualizationsofheritageassetsinmuseums(Barton2000;CarnegieandWolnizer1996).Ifmuseumsareregardedasseparateaccountingandthereforeeconomicentities,heritageartefactsare“assets”ontheentity’sbalancesheet,whichcanbevaluedintermsoftheireconomicperformance(e.g.,payingvisitors).Butifmuseumsareregardedasholdingsuchheritageassetsintrustforsocietyandfuturegenerations,thentheyarealsosomethingthattheorganizationowes,inotherwordsaliability.Inshort,onwhichsideofthebalancesheetsomethingappearsisnotanaturalorobviousfact—itmustbeconstructedasanorganizationalfactofaspecifickind(Hines1988)whichinturndependsontheentityconstruct.Inthecaseofheritageassetsthereisapersistenttensionaboutwhatkindofaccountingobjecttheyare,andthistensioncanbetracedtofundamentaldifferencesinordersofworth(BoltanskiandThévenot2006)implicitinentities.

Accountingbestowsapparentprecisionandoperationalrealityoneconomiccategoriesofvalueandtherebyconstitutesapracticalrealmoftheeconomic.AsHopwood(1992:142)putsit,“apracticaleconomyneedstobepositivelyforgedratherthanmerelyrevealed.”Throughthisprocessorganizationalagentsevenacquirenewpreferencesastheyattendtoaccounting(p.213) constructsofeconomicvalue.Fourcade(2011:1766)makesasimilarpointaboutthecontextofeconomicvaluationpractice:“Throughthisinstitutionalizationprocess,itisnotimpossiblethatanewsetof‘individualpreferences’wereactuallymadeendogenoustothetechniquessupposedtorevealthem.”

Thispowerofaccountingtoconstituteandrealizeeconomicconceptionsofentitiesandtheperformanceoforganizationalagents,therebyshapingratherthanreflectingpreferences,doesnotimplyinanywaythataccountingisasimpletransmissionmechanismforeconomicideas.Indeed,thispowerparadoxicallyrevealstheautonomyofaccountinganditsunstablerelationshipwitheconomics:“Thepresentpracticeoftheaccountingcraftcannotbededucedfromeconomicconceptionsofitandeconomicideasforitschangeandreform,althoughoftenarticulated,finditdifficulttobecomeentangledwithacraftthatseemstohaveindependencefromwhatareseenasitsessentialroles”(Hopwood1992:130).Asweshowbelow,thefinancializationofaccounting—theintroductionoffinancialeconomicsintoaccountingandtheincreasingintertwiningofaccountingwiththegoverningofcapitalmarkets—involvesaprogramofstabilizingthisrelationshipandmakingaccountingpracticemuchlessindependentofeconomicideas.Andyet,despitethisprogram,therehasalwaysbeensomethingpermanentlyproblematicanddissonantabouttheeconomizingroleofaccounting.Accountinggiveslife


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toeconomicsbutisnotapartofeconomics,despitemanyeffortswithintheacademytopositionitassuch.

Nowhereisthisdissonantrelationshipmoreapparentthaninassetaccounting,whichwediscussfurtherinthecasespresentedbelow.Balancesheetsarehighlystableandinstitutionalizedaccountingforms.Yettheyarealsoimperfectrepresentationsofvalueandhavebeenabattlegroundfortherepresentationofnovelformsofasset,suchasbrands,andliabilities,suchasfuturedecommissioningcostsfornuclearfacilities.Topassthetestofaccountingrecognitionandmakeitintothebalancesheet“valuableassets”likebrandsmustbecapableofbeingcrediblymeasured.Butevenifsomethingdoesmakeitontothebalancesheetatanentrycosttotheentity,historyshowsthatthismaybeapooron-goingreflectionofeconomicvalue.Balancesheetvalueshaveperiodicallybeenchallengedbyalternativemarket-basedvalues(whichwediscussfurtherbelow),therebyunderminingtheeconomizingroleoffinancialaccounting.Withintheseperiodiccrisesofvaluerepresentationandmeasurement,theapparentobjectivityofaccounting—itsauditability(Power1996,1997)—hasplayedaconstrainingroleinthevaluationdeliberationsofanalyticalcommunities,ensuringthatnot“anythinggoes.”Andyet,auditabilityisitselfplasticandadaptableandnetworksofreliabilitycanshift,andhaveshifted,overtime.

Allthismakestherelationshipbetweenaccountingandpresumedcommunitiesofusersaverycomplexonesinceaccountingconstitutesbothobjects(p.214) andsubjectsofvalue,thelatterbeing“accountingusers”astheyarecommonlycalled(Young2006).Thepowerofaccountingresidesinthedemarcationof“calculatingselvesandcalculablespaces”(Miller1992).Presuming,andbringingintoexistence,userswhovalueaccountingisoneofthemostpowerfulaccomplishmentsofaccountinginfrastructure.Yet,exactlyhowaccountingvaluesenterthevaluationprocessesofmarketactorsispoorlyunderstoodeventhoughsomeeffectscanbeobserved(Power2012;Vollmeretal.2009).Therecanbelittledoubtthataccountingplaysanimportantsystemicroleforcapitalmarkets;itisaforcefortheeconomizationoforganizationsandsocietiesevenifthevaluationofassetsremainsabattlegroundforitspractitioners.Forexample,theexperienceoftransitioninRussiaandEasternEuropedemonstratedthecentralityofaccountingtothecreationofnewcapitalmarketsandeconomies,evenasWesternaccountingwasknowntoberiddledwithdifficulties(Mennicken2008,2010).Thisalsosuggeststhatimperfectaccountsofworthmaybehighlyfunctionalfortheconstitutionofmarketsandcertainlypreferabletonothing(DambrinandRobson2011).

Finally,accountinginvolvesthespecialistco-optationandeconomizationofordinarylanguagenotionsof“appreciation,”“depreciation,”“recognition,”“realization”and“goodwill”tonameafewkeyconcepts.Accountingisacontinuousprojectoftryingtofixaclosedtechnicalmeaningfortheseterms,whichalwayshavethepotentialtooverflowandcreateconnectionstomanyotherwaysofaccountingandtootheraccounts.Accountinghasenormouspower;indeedthepowerofthebalancesheetistantamounttoanaestheticizationofeconomicvalue,namelyawayofprovidingapersuasive“spectacleofvalue”which,inthecaseoffinancialinstitutions,asthefinancialcrisishasshown,


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becamealsoaspectacleofvaluedestruction.5Throughbalancesheetfocusedaccounting,organizationswhichmaybeordinarilyvaluedasnon-economicinnature,suchasprisonsandhospitals,canbemadeintoeconomicentitieswhose“asset-performance”canbetested,comparedandranked(EspelandandSauder2007;Kurunmäki1999;Mennicken2013).Privatesector-orientedaccountinginstruments,toolsoffinancialreporting,performanceandcostmanagement,havebeenintroducedfromtheprivatesectortothepublicsectortodefineandoperationalize“valueformoney,”tobetterunderstandthelinkbetweenresourcesandoutputs,andtoredefinepublicsectorentitiesascompetitiveunitsresponsiblefortheirownperformancemanagement.Ironically,thebalancesheetcanmakesuchnewlyeconomizedpublicentitiesvisibleasfailingandupforclosure,whilethefailureofprivateentities,suchasbanks,andtheirinterconnectedvulnerabilities,is(p.215) notmadevisible(Miller2008).Thismeansthattheaestheticsofthebalancesheet,itssourceofpower,anditsprojectionoftheautonomouslyperformingentity,isalsohighlyselective,particularlyintermsofthenetworkpropertieswhichitsystematicallyleavesoutofaccount.Thisisshownbythecaseofbrandaccounting,towhichwenowturn.

NewAccountingObjects:BrandsintheLate1980s

Asimplemindcouldhardlyentertainthenotionofintangibleassets.Inachild’stale,wealthiscastles,land,flocks,gold—i.e.physicalthings.Itisalongstepforwardtorealisethattheessenceofwealthistheprospectofbenefits,nottheirphysicalsource.Theaccountantisthusshowinghismaturityifheceasestousethephysicaltestfordecidingwhetheroutlaysfallundertheheadingof“asset”or“expense.”Thecorrecttest,hethenargues,iswhetherornottheoutlayimprovesthefirm’sprospects(whentheoutlookattheyear’sendiscomparedwiththatatitsstart).Tangibilityhasnothingtodowiththistest;heappliesitaliketothecostofalatheandanadvertisingcampaign.

(Baxter1984:218;quotedinNapierandPower1992:85)

BrandaccountingintheUKinthelate1980sandearly1990sisanillustrativecaseofaccountinginstabilitycausedbynewobjectsandacollisionbetweentwomanagerial“ordersofworth”(BoltanskiandThévenot2006)—marketingandaccounting(NapierandPower1992;Power1992).Atthetimetheaccountingauthoritiessoughttoprohibittherecognitionandvaluationofbrandsasassetsinaccountingstatements.Theirgeneralargumentwasthatthevaluationmethodwas“unreliable”andtoosubjective.Furthermore,brandvalueswerenotobservableinliquidmarkets;brandscouldnotbesoldasseparateitemsdistinctfromtheproductstowhichtheywereattached.Forregulators,accountingassetsneededtobeseparableinordertoberepresentedonabalancesheet.Therealsoneededtobeaclearlymeasurableentrycost.Brandsdidnotseemtopasseitheroftheseaccountingtests.

ManyUKcompanieswitheconomicallyvaluablebrandswereopposedtothisview.Howcouldprominentbrandswithconsiderableeconomicvalueforcompaniessimplybeleftoutofaccount?Whatistheroleandvalueofabalancesheetwhenitomitssuchsignificant


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assets?Afewcompaniesdecidedtoopposetheaccountingregulatorand,usingvaluationconsultants,theyproceededtovalueboththeiracquiredandself-developedbrandsasseparableassetsonthebalancesheet.Theexternalauditorsofthesecompaniessupportedthisstrategy,andregulators—inparticulartheBritishAccounting(p.216)StandardsCommittee(whichlaterbecametheAccountingStandardsBoard)—foundthemselvesincreasinglyisolated.

Thebrandvaluationmethodsthemselveswerevariedandcontested.Someinvolvedthedevelopmentofanalogieswithmoreliquidassets,suchaspatents.Othersinvolvedeffortstocapitalizeastreamofhypothesizedpremiumprofitsattachedtothebrand.Yetbelowthesurfaceofmostofthesemethodstherewasusuallysomekindofimplicitdiscountedcashflowmodelandatechnicalchallengetoidentifytheseparablecashflowsin“jointassets”(NapierandPower1992).Inmanyways,themethodswereunsurprising,yettwodifferentgroups—accountingpreparersandregulators—couldcometoopposedviewsabouttheirreliability.Thetemporaryalliancebetweenmarketing-basedknowledgeandthepro-brandcapitalizerswonthedayandtheeffectwastoreinforcethesolidityandreliabilityofbrandvalues.Insomesensebrandsexistedasobjectsbeforetheywereaccountedfor.Yettheycametohaveincreasedinstitutionalcredibilitybecausetheywereusedforbalancesheetpurposes.Bybeingpartofaccountingstatements,brandsbecamepartofanewandpowerful“orderofworth”(BoltanskiandThévenot2006).6Thisinturnsupportedtheideaofa“market”forbrandsalthoughtheywererarelytradedseparatelyfromtheunderlyingassets.

Thebrandaccountingcaseshowshowthecredibilityandreliabilityofaneconomicvaluationmethodologyisnotaninherentfeatureofthatmethodologybutdependsonnetworksofsocialsupport(Power1992)andconfigurationsofattachment(Hennion2007).Fromthispointofview,valuationpracticeisembeddedinanapparatuswhichinvolvestheconstitutionoftheobjectsthemselves.Seeminglyverytechnicalprocessesofvaluationandevaluation(auditingandothertests)co-produceboththeaccountoftheobjectandtheobjectitself.Itfollowsthatdisputesabouttechniquesareoftenalsodisputesabouttheobjectbeingvalued.Thiswasevidentinthecaseofbrandswherethecontestationwasonlypartlyaboutthereliabilityofavaluationtechniquebutwasalsoaboutthenatureofbrandsthemselves.Foraccountingstandardsettersatthetimebrandshadaflimsyreality.Yetformarketingspecialistsandwithincapitalmarketsmoregenerallytheywerefarfromflimsy—indeedtheywereasourceofcomparativeadvantageforthefirmswhichownedthem.Itwasarguedthatfailingtoreflectbrandsasassetsonthebalancesheetcouldleadtofirmsbeingundervaluedandvulnerabletotakeover—andthisbeliefmotivatedtheirvaluationandcapitalization.Thebrandscaseshowshowtheplasticityofaccounting—itscontingent(p.217) combinationofstabilityandinstabilityemergesfromboththevariableandcontestednatureofvaluationtechnologiesandalsothedifferent,andoftenconflictual,ordersofworthandtheirrespectiveobjectsofattachmentthatgetregistered(andde-registered)throughthesemethodologiesovertime.7Thisplasticityisevenmoreevidentintherelatedcasesoffairvalueaccountingandimpairmenttestingpractice.


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“Fair”ValueandtheFinancializationofAccountingItistemptingtoimaginethattheessenceofaccountingismeasurement.Yetthequestionofmeasurementisalsoasourceofinstability(Power2012).Measurementconventionsforfinancialaccountinghavechangedovertime(seethebrandandvalueaddedaccountingcasesdiscussedabove)anddifferentmeasurementconventionscoexistinthesamefinancialstatements.Theearliestandsimplestmeasurementmethodwasthatofan“entry”,orahistorical,costbasis.Thisisnotavaluationmethodascommonlyunderstoodbutitisabasisforrecordingavalueintheaccountsbasedontheacquisitioncostsofanasset.Inthecaseofassetsothermethodswerealsoused,forexampletoreflectdifferentpossiblemanagerialintentions(namelytoreplace,touseortosell).Historyshowsthatamixtureofmeasurementmethodshasbeentoleratedformanyyearsbyaccountingpractitionersandregulatorsalike.Indeed,whatneedstobehighlightedistheeclecticnatureofaccountingmeasurementandvaluations.Unpackingtheeclecticnatureofaccountingconceptsandmethodologiescontributesnotonlytoabetterunderstandingofhowaccountingworks;“italsocontributesmorebroadlytothesociologyofeconomicvaluation,bysheddinglightonthedifferentformsofcalculabilityengrainedintheestablishmentofmarket-economiclossandvalue”(MennickenandMillo2013:1).

“Fair”valuemeasurementinaccounting,atleastonthesurface,disturbedthispluralisticworld(LauxandLeuz2009).Havingexistedasacategoryformanyyears,overthefirstdecadeofthetwenty-firstcentury,therewasanambitiontoexpanditsscaleandknowledgebase.Definedas“thepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate”(International(p.218) AccountingStandardsBoard[IASB]2011:A491),fairvalueisbasedonanexitpriceconcept.Thenotionoffairvaluemovesattentionawayfromanasset’s“valueinuse,”i.e.,anasset’scontributiontothecreationofvaluewithintheorganization,establishedviamanagerialjudgment,toits“exchangevalue,”i.e.,itscurrentmarketprice,establishedviaanactualorimaginedmarkettransaction.8Inotherwords,theconceptoffairvalueassumesanintentiontosell,evenwherethisisnotthecaseempirically.Furthermore,theconnotationoffairnessimpliesfreedomfrombiasandimpartiality.Inthisrespect,fairvalueisbothavaluationmethodandalsoanideaaboutwhatassetpricesshouldbe.Itisforthisreasonthatcritics(Bromwich2007;Ronen2008)suggestthatfairvaluesareoftenhypotheticalandimaginativeconstructsofvalueratherthanrepresentationsofactualmarketprice.However,thisfictionalityistheverysourceofthepoweroffairvalue.Justasvalueaddedaccountinginthe1970swasinessenceafictionintendedtoreconstitutetheenterpriseasacooperativeendeavor,sodoesfairvalueaccountingseektomakefirmsmoremarket-facing,regardlessofwhetherthemarketsarerealorimagined.Foritsadvocates,fairvaluewasanideamotivatingthealignmentoffinancialaccountingwithcapitalmarkets,andincreasingitsrelevanceforcapitalmarketinvestors(Badertscheretal.2010;Barthetal.2001).Theadvocateswerepowerfulbecausefinancialassets,suchasderivativesandotherfinancialinstruments,ratherthantraditionalassets,suchasmachinery,increasinglycomprisedalargerproportionofmanybalancesheets.Inotherwords,changesandtensionsintheaccountingmodelofvalue—fromhistoricalcosttofair


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value,fromorganizationallyfocusedusevaluetomarket-basedexchangevalue—wereimplicatedinchangesinthewidereconomy(EspelandandHirsch1990;PerryandNölke2006)andineconomicdiscourse(Burchelletal.1985;Hopwood1992;Miller1991).

Theriseoffairvalueaccountingwasenabledbyanincreaseintheculturalauthorityoffinancialeconomics(Whitley1986)andbytheproblemofaccountingfor,andrepresentingtherisksofderivatives(e.g.,options,swaps,convertiblebonds)(Morley2011;Power2010;Young1996).Thesenewderivativefinancialinstrumentswereachallengetoexistingpluralmeasurementconventionsinaccountingandwereanobviousapplicationforfairvaluemethods.Thesuccessfulapplicationoffairvaluesinthiscontextgaveasmallgroupofstandardsettersconfidencetoexpandtheirusageinotherareas.Fromthispointofview,fairvalueaccountingwasmorethanamethodbutalsoastakefortheprofessionalidentityofaccountingstandardsettersand(p.219) achallengetoexistingformsofaccountingknowledgebecauseoftheneedformoreengagementwithcorporatefinanceandfinancialeconomics(Power2010;Young1996).Today,the“fair”valuationofassetshasbecomeaspecializedactivity,andaccountantshavenonecessarymonopoly.Newcentersofvaluationhavebeeninvented,suchastheInternationalValuationsStandardsCommittee(IVSC).Valuationhasnotbecomemorescientificorlessjudgmentladenasaresult—ratheraccountantsarenolongernecessarilyincontrolofvalue.9

Thebattlegroundforthefairvaluedebatewas,andremains,thebalancesheet,itselfadeeplyinstitutionalizedandcompressedrepresentationofanorganizationasnotedabove.Thepromotionoffairvaluemeasurementofassetsandliabilitieswasineffectachallengetothelegallogicofthebalancesheetanditsgroundinginspecificjurisdictions.Thefairvalueprogramrepresentedade-localizationofthebalancesheetandgreateralignmentwithglobalcapitalmarkets.Itpromotedthefinancializationofaccountingpractices—theintegrationofvaluationtechniquesderivedfromfinancialeconomicsintoaccountingmeasurementsandtheriseofdefinitionsofvaluederivedfromcapitalmarketsandcapitalmarket-basedexchange(Dore2008;FroudandWilliams2001;Krippner2005;PerryandNölke2006).

Yet,thefinancializationofaccountingthroughfairvaluedidnottaketheformofasweepingcolonizingprocessresultinginanewmeasurementstability.Indeeditwasasourceofconsiderabledissonancewithintheaccountingprofession,andbeyond.10Thepressuretoexpandtheapplicationoffairvalueswithinaccountingwasmorethevisionofasmallsub-setofaccountingpolicymakersandacademicsratherthananyfailureofthemarketforaccountinginformation(Bignonetal.2009;Botzem2012;Power2010).Indeed,itcanbereadascontestwithintheaccountingpolicyworldbetweenmeasurementidealistsandpragmatists(Power2010;Walton2004;Whittington2008).Theearlysuccessbytheidealistsinvolvedanewconceptionofaccountingreliability.Inplaceoftransactionalpragmatismgroundedinthecashrealizabilityofrecordedprofits,fairvalueenthusiastsappealedtothereliabilityofvaluationmodelsderivedandadaptedfromfinancialeconomics.Yetthisassemblageofactorsandideaswhichgavefairvalueaccountingitsoriginalboost(p.220) haschangedsignificantlysincethefinancialcrisis


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(LauxandLeuz2009).Notonlyhavekeyfigureswhopromotedfairvalueinaccountingstandardsetting,likeSirDavidTweedie,formerChairmanoftheIASB,movedon,buttheauthorityoffinancialmarketswastemporarilydamaged.In2014,fairvalueremainsstrongbutlessimperialisticthanhitherto,andwehaveseenareturntomorevaluationpluralism.Thisisparticularlyevidentinthetestingofassetvaluationsforimpairmentwhichweconsidernext.

TestingValuations:AssetImpairment11Combiningmanagerialandmarket-basedvaluationapproaches,impairmenttestspositionaccounting,andeconomicvaluationmorebroadly,attheinterfacebetweenmarketsandorganizations(MennickenandMillo2013;butseealsoHuikkuetal.2012).Impairmenttestsareaccountingvaluationsthatseektoestablishwhetherornotanasset’srecoverableamounthasfallenbelowitscarryingamount(i.e.bookvalue)duetoobsolescence,damage,orafallinmarketvalue.Impairmenttestsinvolveboththeapplicationofmarket-basedvaluationapproachesbasedonaconceptof“valueinexchange”(fairvalue)andalso“valueinuse”calculationsbasedonmanagerialestimatesofthediscountedfuturecashflowsthatanassetisexpectedtogenerateforitsowner.

Impairmenttestsarecontrivedandstructuredde-stabilizationsofvalue.Impairmentcalculationsrequiremanagers(andaccountants)toputpreviousvaluationsintoquestion.Insodoing,theplasticityofaccountingvaluationsbecomesapparent.ParaphrasingCarruthersandKim(2011:253),wecansaythatimpairmentlossesdonotsimplyreflectaccountingvaluationsgonewrong.Rather,impairmenttests“revealhowmuchvalueisacontestedandprovisionaljudgementwhosecomplexityliesburiedbeneathasurfaceofnumbersandquantification”(2011).Impairmentofassets,intheformoftherequirementtowritedownassetswhentheirvaluetothebusinessislowerthantheirbookvalue,hasbeeninexistenceformorethan100years.Write-downrequirementsareengrainedinthelong-standingaccountingprinciplesofconservatismandprudence(Dicksee1892).Yet,itwasonlyinthelate1980sthatsuchwrite-downrequirementsstartedtoberedefinedandregulatedintermsofstandardizedimpairmenttests(MennickenandMillo2013).Inshort,anapparatusforimpairmenttestinginvolvingstandardsandregulationwasconstructed,butthatveryconstructionisfoundedon,andreveals,thelatentdissonancecontainedinanyaccountingvaluation.(p.221) Liketheriseoffairvalueaccounting,thenewnessofimpairmenttestingdidnotinvolvetheconstructionofnewaccountingobjects,asinthecaseofvalueaddedorbrands.Ratheritinvolvedtheexpansioninscaleandscopeofpracticestoassurevaluations.Onemightputitlikethisinthecontextofthisvolume:thegrowthandelaborationoftestsofaccountingvaluessimultaneouslyrevealsthatthesevaluesareamatterofcontestedcollectivetasteorjudgment.FollowingHennion(2007andinthisvolume),whodrawsourattentiontotheimportanceofacontinuouselaborationofproceduresthatputtastetothetest,wearguethataccountingvaluations,likewinetastingandartisticevaluation,arealsocomplex,distributedcollectiveendeavors,shapednotsomuchbythemechanicalfollowingofsomealgorithm,butbyemotion,ritualandtherelianceonothers—theirjudgment,experienceandpreferences(seealsoBoedkerandChua2013;Pentland1993).


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Theconceptualunderpinningsandvaluationmethodologiesunderlyingstandardizedimpairmenttestsarenotsingularandstable.Impairmenttestingrulesembracedifferentcalculativecomponentsandvaluationmethodologies,partlydrawingonconceptsandtechniquesderivedfromfinancialeconomics(e.g.,theconceptofmarketrelevance,fairvalueanddiscountedcashflowanalyses),partlydrawingonconceptsandtechniquesderivedfrommoretraditionalaccountingpractice(e.g.,theprincipleofcost-or-less,thenotionofcash-generatingunit,andfirm-based,ratherthanmarket-oriented,notionsofdeprivalvalue).12Impairmenttestsrequiremanagers(andaccountants)tocompareandcontrastdifferentvaluationmethodologies:themarket-basedfairvalueofanassetoragroupofassets(i.e.theamountatwhichanassetcouldbedisposedof,lessanydirectsellingcosts)andthe“valueinuse”ofanasset(i.e.itsvalue—definedintermsofusefulness—fortheowningorganization,e.g.,intermsoffuturecashflowsthatcanbegeneratedbytheassetinquestion).13

Throughimpairmenttests,managersarebeingmadeawareoftheimportanceofmarketsandoftheimplicationofmarket-basedinformationinorganizationalimpairmentvaluations.Butatthesametime,market-basedinformationbecomesmoremanagerialized(MennickenandMillo2013).Althoughimpairmenttests,likefairvalueaccounting,shiftattentionfromanotionofreliabilityrootedintheobjectivityofhistoricalcosttoa(p.222)notionofreliabilityrootedinfuture-orientedmanagerialestimationsandmarket-basedvaluationexpertise(Power2010),itwouldbewrongtoviewthisprocessoffinancializationasaone-waystreet,inwhichfinanceandfinancialmarketscaptureandcolonizeaccountingvaluationsandorganizations.Bothmanagerialandmarket-basedordersofworthareco-transformedinaprocessofdisciplineddissonancebetweenthem.14

Furthermore,itisimportanttonotethatimpairmenttestsarenoteasilyputintopractice(Huikkuetal.2012).Ratherthancontributingtothe“doingofaccounting,”impairmenttestsaskmanagers,accountantsandauditorsto“undoaccounting”andtogetuncomfortablewiththenumberstheyproduce.AsMennickenandMillo(2013:8)highlight,althoughpresentedintheformofastandardizedalgorithm,impairmenttestsare“anti-formulaic.”Thedissonantnatureofimpairmenttestsrequiresthatvaluationismultipliedandaccountingrepresentationdestabilized(seealsoHuikkuetal.2012).Inessence,impairmentrulescarrywiththemthepotentialforinducingmorereflexivityandthereforenoveltyaboutthepositioningoforganizationsvis-à-vismarkets.

ThePlasticityofValuationThischapterhasprogressedthroughfour“moments”inthehistoryofaccountingandvaluewhichareclearly“sitesofdissonance.”Webeganinthelate1970swiththeshort-livedappearanceofvalueaddedstatements.Thenweconsideredthebrandaccountingcontroversyinthelate1980s.Thirdlywediscussedthecontroversialriseoffairvalueaccountingandhowthisconstitutedthefinancializationoffinancialaccounting.Fourthly,thecaseofimpairmenttestingrevealsthelimitsofthisfinancializationprocessandtheessentiallypluralisticandplasticnatureofaccountingvalues.Allfourcasesoraccounting“moments”suggestthatvaluationpracticeswithinaccountingarefarfrombeingthecool


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applicationofcalculativetechnique.Suchtechniqueshavecomplexcontingenthistoriesofinstitutionalization,andtheydependonaweboftacitnon-oppositionfromavarietyofactorswhoseordersofwortharefarfrombeingaligned.Evenatthespecificpracticelevelwehaveshownhowtheproductionofparticularvaluationsisthetemporaryoutcomeofanetworkofactors,andaformofdistributedcognitionwithpluralattachments,whichisnotnecessarilyfullycoordinated.Thelimitedstabilityofthisnetworkisquicktorevealitselfatmomentsofinnovationandrelatedconflictanduncertainty.

(p.223) Inadditionwehavesuggestedthatvaluationisalsoworkinvolvingthemultiplicationandtransportationofinscriptions(LatourandWoolgar1979;Robson1992)aswellasactsofjudgmentandinterpretationatcrucialjunctures.Thisworkmoreorlesshangstogether,andmoreorlessproducesstability.Intimesofgreatinstability,suchaswesawinthefinancialcrisisof2008onwards,theworkofaccountingvaluationintensifies.Forexample,thevaluationoffinancialassetswithquestionableliquidityduringtheheightofthefinancialcrisisshowshowtheextendedelaborationofinscriptionsisnecessarytoanchorjudgmentsaboutvalue,essentialfictions,inamaterialsubstrate,notleastforthepurposesofmakingsuchvaluationsauditable,traceableandcomfortableagain(Power2013).Indeed,asvaluationscometoberecognizedasessentiallyplasticandcontestableweobserveanintensificationofevidentiaryprocesses.Actorsinvolvedinvaluationworkincreasinglyrecordanddefendwhattheydo.Keyvaluejudgmentsmustbearticulatedanddefended.Forumsexist,suchasriskandauditcommitteesinsideorganizations,wheresuchjudgmentsarechallengedandmustbejustified.Inthisrespectjudgment,calculationandauditabilityarenecessarilyintertwinedintheproductionofaccountingvalues.

Thisplasticityofaccountingvaluationhasbroaderimplicationsforvaluationstudiesandsocialstudiesoffinance.Ourargumentscutacrossfinanceandaccounting(Power2012;Vollmeretal.2009),andwesuggestanunderexploreddynamicwithinbroadargumentsaboutfinancialization.Wehavearguedthattheeconomizingroleofaccountingisnotinvariant.Financialaccountingasadeeplyinstitutionalizedpracticewithincapitalmarketshasundergoneprofoundchangesandchallengestoitsinternallogicororientation,becomingprogressivelyfinancializedbystages.Byprioritizingbalancesheetelementsoverincomestatementsintheearly1970s,theUS-AmericanFinancialAccountingStandardsBoard(FASB)createdagatewayformeasurementpracticesinformedbyfinancialeconomics.Asthelattergrewinlegitimacyandwasvalidated,financialaccountingwaseffectively“financialized”(Morley2011),butthisislessastoryofinevitableprogressinvaluationmethodssomuchasthetemporarytriumphofonevaluecenter—thecapitalmarkets—overanother—thejudgmentsofmanagement.

Itisintheplayingoutofvalueandvaluationclasheswithinaccountingthatamoraleconomyofvaluationingeneralbecomesvisible.Whereisthegroundofvalue?Whosevaluecounts?Isittheworkofmultipleactorsonthecrowdedvirtualtradingfloor,whosescreen-basedtechnologiesfascinatesociologistsoffinance?Orisittothemanagersoffirmswithintimateknowledgeoftheirproducts?Thisisatension,whichhas


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beenaddressedbymanyscholarsofeconomiclife,butwehavesuggestedthatthisisalsoadramaplayedoutwithintherealmofmarket-orientedvaluationpracticesthemselves,andrevealedbyourfourmomentsinaccountinghistory.

(p.224) Toconclude:Wehavearguedthataninvestigationofthemultipleformsofcalculabilityengrainedineconomicvaluationandmeasurementtechnologies,suchasbrandaccountingandimpairmenttests,helpstogettogripswiththe“plasticityofvaluation”(CarruthersandKim2011)and“theproductivefrictions”(Stark2009,2011)involvedasdifferentcalculativeframesareused,compared,andputinrelationtoeachother.Theplasticityofaccountingvaluationunderwritesthepowerofaccountingandshouldnotbereadasweakness.Indeed,associologistsweneedtoworkhardertounderstandhowthesystemicreachofaccountingasapracticeoforderingandvalorizinghasneverbeengreateratatimewhencorepracticesofmeasurementandvaluationaremostcontestedandplural,andevervulnerabletothedissonantforceofinnovation.

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Notes:

(1)ToputitinBurchelletal.’s(1985:405)terms,“withtheelectionofanewConservativeGovernmentin1979thethreearenasofthevalueaddedconstellationweresuddenlyrupturedandtransformed.”Valueaddedaccountingwasnolongerseenasatoolforthemanagementofthenationaleconomy.“Marketpressuresinanincreasinglyhighunemploymenteconomywereseentooffermoreeffectivemeansforincomecontrol”(ibid.).

(2)SeealsoMiller(1991),MillerandO’Leary(1994),andMuniesaetal.(2007).Inhisstudyoftheriseofdiscountedcashflowaccounting,Miller(1991:737),forexample,usesthenotionofassemblagetounravelhowacomplexinterplayofnewbodiesofknowledge,novelregulatoryattempts,changingtheoreticalconceptionsofgovernanceandanewaccountingrhetoriccontributedtotheriseofdiscountedcashflowtechniques.

(3)Forexample,thecontingentnatureofthediscreteaccountingentityassumptionunderlyingcorporatefinancialstatementsbecamevisibleandproblematicinthefinancialcrisisof2008asriskandvaluemigratedfromfragilecorporateentitiestostatesandtocitizens.

(4)Thisisnottosaythattherewerenoattemptsto“economize”organizationswithoutappealtothenotionofmarkets—plannedeconomiesprovideagoodcaseinpointhere,andaccountingplayedanimportantroleintheorganizingofstate-led,plannedeconomies.However,sincethecollapseoftheSovietUnion,economization,predominantly,goeshandinhandwiththemarketizationofmuchofsociallife.


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(5)WeowethispointtoKimberlyChong.

(6)(Accounting)worthwasnolongermanifestedintermsof(historical)cost.Attentionwasshiftedfrom(historical)costaccountingand“tangibility”totheaccountingforafirm’sprospectsandthewaysinwhichassets,tangibleandintangibleonescontributetothegenerationofafirm’sfuturecashflows.

(7)Today,brandvaluationstillrepresentsanimportantareaofvaluation.Yet,mostaccountingstandards,includingtheinternationalaccountingstandards,donotallowfirmstoaccountforbrandsseparatelyintheirbalancesheetsduetothestringencyoftheirintangibleassetrecognitiontests.Yet,indirectly,brandsareoftensubsumedundertheaccountingforgoodwill,whichariseswhenonecompanyacquiresanothercompany.Suchexternallyacquiredgoodwillismeasuredintermsofthedifferencebetweenthepricepaidfortheacquiredassetsandtheirfairvalueatthepurchasedate.

(8)Forthedistinctionbetween“valueinuse”and“valueinexchange”seeforexampleAdamSmith(1970),citedinHutter(2010:244).Thisdistinctionhasbeenre-inscribedintoaccounting,andalthoughfairvaluefocusesonthe“valueinexchange”ofanasset,“valueinuse”isstillusedasanimportantreferencepointinaccountingvaluations,asforinstanceinthecaseofimpairmenttesting,whichwediscussfurtherbelow.

(9)AlthoughtheIVSCwasoriginallyestablishedindependentlyfromtheaccountingprofession,itisworthnotingtheincreasingintertwinementbetweentheIVSCandtheaccountingprofession.In2012,forexample,SirDavidTweedie,formerChairmanoftheIASBwasappointedasChairmanoftheIVSC’sBoardofTrustees.

(10)Theuses,usefulnessandmeasurementoffairvaluewere,andstillare,hotlydebatedamongstaccountingacademics,accountingstandardsettersandpreparers(seee.g.Bromwich2007;Macve2010;Penman2007;Walton2004;Whittington2008).Fairvalueisalsonotanewconcept.AsWalton(2007:5)pointsout,variantsoffairvaluedefinedintermsofmarketvaluecanbefoundinmuchofthenineteenth-centurycompanylegislationinEurope(GeorgiouandJack2011).However,thefocusingoffairvalueonexitpriceisrelativelyrecent.

(11)ThissectionislargelybasedonMennickenandMillo(2013).

(12)Deprivalvalueisthelowerofreplacementcostandrecoverableamount,whererecoverableamountrepresentsthehigherofanasset’snetrealizablevalueanditspresentvalue(valueinuse)(Macve2010:113).Macvearguesthatdeprivalvalue“copesmuchmoreadequatelyandsimplythanFV[fairvalue,added]doeswithtypicalreal-worldmarketimperfections”(2010:114).

(13)Seee.g.,InternationalAccountingStandard(IAS)36“ImpairmentofAssets,”whichstatesthattheimpairmentreviewshouldcompriseacomparisonofthecarryingamount(bookvalue)ofthefixedassetorgoodwillwithitsrecoverableamount,whererecoverableamountisdefinedasthehigherofanasset’sorcash-generatingunit’sfair


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valuelesscostsofdisposalanditsvalueinuse.

(14)Wespeakofdisciplineddissonanceheretostressitsorchestratedandorganizednature.

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Andrea Mennicken, Michael Power Accounting and …eprints.lse.ac.uk/61660/1/__lse.ac.uk_storage_LIBRARY...Accounting and the Plasticity of Valuation Page 2 of 21 PRINTED FROM OXFORD