Lecture 2: Hines, Ruth (1988). Financial accounting: In communicating reality, we construct reality. Accounting. Organizations and Society, 13(3), 251-261.

Question 1

What is the role of accounting practices according to the author?

Answer 1

To communicate social reality
=> But then, while communicating this reality, accounting practices also create, change and shape this reality. (Constructing reality)

Question 2

What does the author refer to as “real”?

Answer 2

Real = True (Unbiased, neutral, objective)

Question 3

What is the constructionist viewpoint?

Answer 3

it is all an idea (i.e. Society)

=> And by acting in accordance with it, we make it so.

(“If men define things as real, they are real in their consequenses”)

Question 4

Give an example of the constructionist viewpoint

Answer 4

We create a picture of an organization or economy =>
On the basis of that picture, People think and act =>
And by responding to that picture of reality they make it real. => “ It becomes real in its consequences”

In communicating reality, you construct reality.

Question 5

What does Hines (1988) mean with handmaidens of status quo?

Answer 5

• Accountants just do their job
• It is the people that make up theories about us
• They do not really question what accountants do
• Accountants are officially designated as communicating reality (And people accept this)
• They never suspect that accountants play a role in constructing the status quo

Question 6

What does Hines (1988) think about regulatory development (pollution example)?

Answer 6

Pollution doesn´t cost the organization anything, other people pay.

However, it becomes real if people reach a consensus on the problem. And collectively agree that it is a problem.