Contents

Foreword

A. Distinguished Guest Lecture

Grzegorz W. Kołodko, TIGER, Leon Koźmiński Academy of Entrepreneurship and Management, Poland

Fifteen Years after the Polish “Round Table”. The World Economy and Prospects for Growth in Transition Countries

B. General Theory

Richard Mattessich, University of British Columbia, Sauder School of Commerce, Canada Reality Representation in Accounting

Eric Melse, Maastricht Accounting, Auditing & Information Management Research Centre, The Netherland

Time and the dimensions of the economic accounting system: a mereological exploration.

Mieczysław Dobija, Dorota Dobija, Leon Koźmiński Academy of Entrepreneurship and Management, Poland

About Nature of Capital

Joanna Czubała, Marcin Kędzior, Cracow University of Economics, Poland

Environmental reporting and accounting as a feedback between the society and general accounting theory

Natalia Maluga, Tetyana Davidyuk, Zhytomyr State Technological University, Ukraine Double Entry in Accounting Theory: Control Function Provisions

Renata Dyląg, Magdalena Koczuba – Sobieraj, , Leon Koźmiński Academy of Entrepreneurship and Management, Poland

Production Function, Accounting vs. Econometric Approach

C. Accounting Across Boundaries

Eli Bartov, New York University, Stern School of Business, USA

Stephen R. Goldberg, Grand Valley State University, Seidman School of Business, USA

Myungsun Kim, University of Missouri-Columbia, School of Accountancy, USA

Comparative Value Relevance Among German, U.S. and International Accounting Standards: A German Stock Market Perspective

Stanisława T. Surdykowska, University of Jagiellonian, Poland

Mark-to-Market Accounting and The International Financial Reporting Standards – unfulfillable expectation gap

Piotr Wojtowicz, Cracow University of Economics, Poland

Effect of Shifts in Accounting in Poland in Context of Convergence to IAS

Jędrzejczyk Marcin, Cracow University of Economics, Poland

Theoretical Dilemmas of Translation in Consolidated Statements

Mariusz Andrzejewski, Konrad Grabiński, Cracow University of Economics, Poland Information Classification in Electronic Financial Reporting

D. Accounting and Managing

Shyam Sunder, Yale University, Yale School of Management, USA

Contract Theory and Strategic Management: Balancing Expectations and Actions

Alicja Jaruga, University of Lodz, Poland

Justyna Fijalkowska, University of Lodz, Poland

Leonor Ferreira, Universidade Nova de Lisboa, Portugal

Rodolfo Papa, University of Lodz, Poland

Earnings Management in the face of the theory of managerial choice of accounting techniques

Milena Persic, Faculty of Tourism and Hospitality Management, University of Rijeka, Croatia

Sandra Jankovic, Faculty of Tourism and Hospitality Management, University of Rijeka, Croatia

Dubravka Vlasic, Faculty of Tourism and Hospitality Management, University of Rijeka, Croatia

APROACH TO UNDERSTANDING ENVIRONMENTAL MANAGEMENT ACCOUNTING IN HOSPITALITY INDUSTRY

Zeliko Sevic, University of Greenwich, UK

A Theoretical Framework for Performance Measurement in the Public Sector

Jerzy Kuchmacz, Cracow University of Economics, Poland

EXAMINING CHANGES IN THE RATE OF RETURN IN THE CONTEXT OF MARKET EFFICIENCY

E. Governance and Government

Wally Smieliauskas, University of Toronto, Canada

Kevin C. K. Lam, The Chinese University of Hong Kong

A PROPOSAL FOR RISK BASED ACCOUNTING PRINCIPLES TO MEET THE NEW EXPECTATIONS OF ACCOUNTING STANDARDS

Czesław Mesjasz, Cracow University of Economics, Poland

THEORIES OF CORPORATE GOVERNANCE

Susan Work Martin, Grand Valley State University, Seidman School of Business, USA

Tax Amnesty and Compliance

Mieczysław Dobija, Cracow University of Economics, Poland

Magic Accounting. Financing Public Services without Tax Funds

F. Accounting and Decisions

Dariusz Wędzki, Cracow University of Economics, Poland

BANKRUPTCY PREDICTION IN POLISH ECONOMIC CONDITIONS – A LOGIT APPROACH

Iwona Cieślak, Małgorzata Kucharczyk, Leon Koźmiński Academy of Entrepreneurship and Management, Poland

CAPITAL ANALYSIS OF SALARIES

Olov Olson, Göteborg University, Sweden

Marita Blomkvist, University College of Halmstad, Sweden

Johan Dergård, Göteborg University, Sweden

Clary Jönsson, Göteborg University, Sweden

Accounting and Enterpreneurship – A Review and Discusion of the Scientific Literature

Dorota Dobija, Leon Koźmiński Academy of Entrepreneurship and Management, Poland

Accounting for Cost of Risk

Bartłomiej Nita, Wroclaw University of Economics, Poland

Pricing decisions in the context of corporate value creation

G. Accounting History

Jarosław Sokołow, St-Petersburg State University, Department of Statistics, Accounting and Auditing, Russia

Svetlana M. Bychkova, St-Petersburg State University, Department of Financial Analysis, Finance and Auditing in Agriculture, Russia

Russian accounting in the XX-th century

Bartosz Kurek, Cracow University of Economics, Poland

Culture Creating Function of Accounting

Natalia Yaroshovets, Kyiv National Taras Shevchenko University, Ukraine

The Past and the Contemporaneity of Ukraine Accounting (research report)

Douglas F. Jack, Eco-Montreale, Sustainable Development Association, Canada

Indigenous Circle of Life (research report)

H. Poem

The poem written by Maria Kozlova, Franc Butynetz’s School of Accounting,

Zhytomyr State Technological University, Ukraine

Foreword

The principle of balance or equilibrium is fundamental to science. Nature is in a dynamic balance. Movement or flow originates in the propensity to equalise levels and restore the balance disturbed by exogenous shocks. The purpose of labour is to concentrate energy against the self-equalisation forces. S. Sunder in his book “Theory of Accounting and Control” eloquently expresses the dynamic balance principle in relation to the field of accounting. Many scholars, including Y. Ijiri, R. Mattessich, and W. Vatter, have explored the indispensable role of accounting in developing societies.

Society must continually address the economic problem of developing efficient expectations and contracts among its members, and thus induce them to enhance their personal welfare without sacrificing the collective welfare. This requires using the resources of its members to produce most products and services, and distributing the output among them so every one receives his/her opportunity cost plus a just share of the surplus generated.

In a balanced society what each member expects to receive is linked to his/her contributions to society, and what each member actually receives matches this expectation. Such a society not only balances individual contributions to receipts, it also balances the fairness of resource distribution against the individual incentives to increase their human capital and contributions to society.

In our view, developing societies aim at becoming efficient in this sense. Development of markets, balanced expectations, science and technology help bring prosperity to societies. Accounting plays a pivotal role in the process. The main purpose of the Conference planned for June 2004 was to examine this deeper role of accounting in economic development of society.

The papers presented in this publication were accepted at a Conference that took place in Warsaw in June 2004. The idea of organising the conference with the focus on general accounting theory arose from the experiences that the accounting world has gained in the last decade of the twentieth century. The trends towards integration, transformation and globalisation demand adequate responses to the new challenges – the challenges, which have led to the discovery of the new fields of accounting research. Contributions sent by authors have covered most of expected topics. The book of proceedings includes papers, which deal with the variety of issues related to the balanced society paradigm. Compensations well reasoned by human capital of employees, adequate discount rate in human capital research, capital and risk new enlightenment, accounting for cost of risk, new ideas of production function working in accounting environment are essential researched matters. The other matters, such as the new ideas in taxation, corporate governance and strategic management, show virility of considered issues.

We are grateful to all conference contributors, participants and reviewers. We also highly appreciate the inauguration lecture presented by distinguished conference guest Grzegorz W. Kołodko. The conference was organised by academics working in Accounting Departments of three Universities: Grand Valley State University (USA), Cracow University of Economics (Poland), Leon Koźmiński Academy of Entrepreneurship and Management (Poland). We are especially thankful to Grand Valley State University for support that helped us to successfully organise our conference in general accounting theory 2004.

Susan Martin & Mieczysław Dobija

For all academics originating accounting theory

Когда изменится сто раз все в бухучете

И возвратится на круги своя, –

Идеи Ваши будут все ж в почете,

Науки мудрость книги сохранят.

Вы знаете, что будет послезавтра,

О том, что было лет пятьсот назад.

Сегодня вы готовите для старта

Десятки тех, кто знанье сохранят.

Профессор! В беспокойных новых мыслях,

Для Вас вся жизнь – познание в пути.

Теорий стройность сквозь открытье истин

Вам хочется другим преподнести.

В чем ценность жизни, смысл? Наверно, в этом –

Другим гореть, себя испепелив,

Всю жизнь искать свои пути, ответы,

Лишь молодость надеждой окрылив.

…Бесценность знаний, множество открытий

В ночах бессонных белых тишине…

Бухгалтер и ученый знаменитый,

Десятки лет Вы служите стране.

Желаем счастья, долгих лет, здоровья!

И пусть Вам море радости несут

Все диссертанты с благодарною любовью

За благороднейший и тяжелейший труд!

Чтоб мало было зла и мало лести,

А много правды, счастья и тепла,

Удачи, уваженья, солнца, чести

Вам каждый день сама Судьба несла!

…Науки мудрость книги сохранят.

Идеи Ваши будут все ж в почете,

Когда изменится сто раз все в бухучете,

И возвратится на круги своя…