The paper draws on the economic theory of the firm as developed by Ronald Coase and Oliver Williamson. The theory helps us to understand why firms exist and why market prices are available for some items in accounts and not for others that are part of in-firm processes. The paper argues that...

On many important accounting problems there seems to be a gap in knowledge and understanding between the academic world and those whose views are most prominent in public debate. The paper explores the reasons for this gap, and suggests that the biggest problem is the perception of irrelevance....