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e u r o p e a ne d i t i o n

Craig Deegan &Jeffrey Unerman

F i n a n c i a lA c c o u n t i n g

T h e o r y

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FinancialAccountingTheory

europeanedition



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Financial Accounting TheoryCraig Deegan & Jeffrey UnermanISBN-13 9780077108960ISBN-10 0-07-710896-5

Published by McGraw-Hill EducationShoppenhangers RoadMaidenheadBerkshireSL6 2QLTelephone: 44 (0) 1628 502 500Fax: 44 (0) 1628 770 224Website: www.mcgraw-hill.co.uk

British Library Cataloguing in Publication DataA catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication DataThe Library of Congress data for this book has been applied for from the Library of Congress

Acquisitions Editor: Mark KavanaghSenior Development Editor: Natalie JacobsMarketing Manager: Marca WosobaProduction Editor: James Bishop

Text Design by Jonathan ColecloughCover design by ego creative limited

Typeset by MCS Publishing Services Ltd, Salisbury, Wiltshire.Printed and bound in Great Britain by Bell & Bain Ltd, Glasgow

Published by McGraw-Hill Education (UK) Limited an imprint of The McGraw-Hill Companies, Inc.,1221 Avenue of the Americas, New York, NY 10020. Copyright 2006 by McGraw-Hill Education (UK)Limited. All rights reserved. No part of this publication may be reproduced or distributed in any form orby any means, or stored in a database or retrieval system, without the prior written consent of TheMcGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage ortransmission, or broadcast for distance learning.

ISBN-13 9780077108960ISBN-10 0-07-710896-5

2006. Exclusive rights by The McGraw-Hill Companies, Inc. for manufacture and export. This book

cannot be re-exported from the country to which it is sold by McGraw-Hill.



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From Craig: My efforts are dedicated to my beautiful young daughter, Cassandra

Joy Deegan.

From Jeffrey: This book is dedicated to Terry and Alan Unerman a most loving,

devoted and very special couple.

Dedication

v



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Preface xi

Guided tour xiv

Technology to enhance learning and teaching xvi

Acknowledgements xviii

1 Introduction to financial accounting theory 1

2 The financial reporting environment 31

3 The regulation of financial accounting 55

4 International accounting 85

5 Normative theories of accounting 1:The case of accounting for changing prices 121

6 Normative theories of accounting 2:The case of conceptual framework projects 167

7 Positive Accounting Theory 205

8 Unregulated corporate reporting decisions:

Considerations of systems oriented theories 2679 Extended systems of accounting:

The incorporation of social and environmentalfactors within external reporting 309

10 Reactions of capital markets to financialreporting 375

11 Reactions of individuals to financial reporting:An examination of behavioural research 409

12 Critical perspectives of accounting 427

Index456

Brief table of contents



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Preface xi

Guided tour xiv

Technology to enhance learning and teaching xvi

Acknowledgements xviii

1 Introduction to financial accounting theory 1

Opening issues 1 What is a theory? 2

Why it is important for accounting students to study accounting theory 4

A brief overview of theories of accounting 5

Evaluating theories of accounting 11

Can we prove a theory? 14

Evaluating theories considerations of logic and evidence 16

Outline of this book 22

Questions 24

2 The financial reporting environment 31 Opening issues 31

Introduction 32

An overview of the development and regulation of accounting practice 34

The rationale for regulating financial accounting practice 38

The role of professional judgement in financial accounting 41

How powerful is the accountant? 44

Chapter summary 49

Questions 50

3 The regulation of financial accounting 55 Opening issues 55

Introduction 56

The free market perspective 57 The pro-regulation perspective 62

Public interest theory 65

Capture theory 67

Economic and social impacts of accounting regulation 69

Lobbying and the economic interest group theory of regulation 71

Accounting regulation as an output of a political process 75

vii

Detailed table of contents



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Chapter summary 77

Questions 79

4 International accounting 85 Opening issues 85

Introduction 86 Evidence of international differences in accounting 86

Explanations of differences in accounting practices employed in differentcountries 88

Reasons for harmonization and standardization 106

Obstacles to harmonization and standardization of accounting 108

Processes and institutions of international accounting standardization 109

Chapter summary 114

Questions 115

5 Normative theories of accounting 1: The case of accounting forchanging prices 121 Opening issues 121

Introduction 122

Limitations of historical cost accounting in times of rising prices 123

Current purchasing power accounting 128

Calculating indices 129

Current cost accounting 140

Exit price accounting: the case of Chambers continuously contemporaryaccounting 146

The demand for price adjusted accounting information 152

Professional support for various approaches to accounting for changingprices 155

Chapter summary 158 Questions 159

6 Normative theories of accounting 2: The case of conceptualframework projects 167 Opening issues 167

Introduction 168

What is a conceptual framework of accounting? 168

A brief overview of the history of the development of conceptual

frameworks 171

Building blocks of a conceptual framework 175

Benefits associated with having a conceptual framework 194

Conceptual frameworks as a means of legitimizing standard-setting bodies 197 Chapter summary 198

Questions 199

7 Positive Accounting Theory 205 Opening issues 205

Positive Accounting Theory defined 206

The origins and development of Positive Accounting Theory 208

Opportunistic and efficiency perspectives 220

viii DETAILED TABLE OF CONTENTS



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Ownermanager contracting 224

Debt contracting 237

Political costs 241

Some criticisms of Positive Accounting Theory 247

Chapter summary 252

Questions 253

8 Unregulated corporate reporting decisions: Considerations ofsystems oriented theories 267 Opening issues 267

Introduction 268

Political economy theory 269

Legitimacy theory 271

Stakeholder theory 284

Institutional theory 295

Chapter summary 299

Questions 300

9 Extended systems of accounting: The incorporation of social andenvironmental factors within external reporting 309 Opening issues 309

Introduction 310

Stages of sustainability reporting 311

Historical development of social and environmental reporting practices 314

Objectives of the social and environmental reporting process

the whystage 315

Identifying stakeholders the whostage 335

Identifying stakeholder information needs and expectations

the for whatstage 340 Theoretical perspectives on some social and environmental reporting

procedures the howstage 352

Chapter summary 365

Questions 367

10 Reactions of capital markets to financial reporting 375 Opening issues 375

Introduction 376

An overview of capital market research 377

The information content of earnings 380

Results of capital market research into financial reporting 383

Do current share prices anticipate future accounting earningsannouncements? 396

Chapter summary 401

Questions 403

11 Reactions of individuals to financial reporting: An examinationof behavioural research 409 Opening issues 409

Introduction 410

DETAILED TABLE OF CONTENTS ix



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An overview of behavioural research 410

The Brunswik Lens Model 411

The use of particular information items and the implications of different

forms of presentation 415

Decision-making processes and the use of heuristics 417

Issues of decision accuracy 419

Protocol analysis 420

Limitations of behavioural research 421

Chapter summary 422

Questions 422

12 Critical perspectives of accounting 427 Opening issues 427

Introduction 427

The critical perspective defined 428

Critical accounting research versus social and environmental accounting

research 433 Possible impact of critical accounting research on social practice 436

The role of the State in supporting existing social structures 439

The role of accounting research in supporting existing social structures 440

The role of accounting practice in supporting existing social structures 444

Chapter summary 449

Questions 450

Index 456

x DETAILED TABLE OF CONTENTS



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xi

This book has been written to provide readers with a balanced discussion of

different theories of financial accounting. Various theories for and against regu-

lation of financial accounting are critically discussed and various theoretical

perspectives, including those provided by positive accounting theory, political

economy theory, stakeholder theory, institutional theory and legitimacy theory, are

introduced to explain different types of voluntary reporting decisions. The book

also analyses and evaluates the development of various normative theories of

accounting, including various approaches developed to account for changingprices, and different normative perspectives about the accountability of business

entities, as well as various conceptual framework projects. It also emphasizes the

role of a number of factors in explaining both international differences in

accounting and recent institutional efforts towards international harmonizing of

accounting.

In addition to providing explanations for why or how organizations should

disclose particular items of financial information, the book investigates research

that explores how or whether people at an aggregate and individual level demand or

react to particular disclosures. Reflecting the growing relevance of social and

environmental reporting issues to students, government, industry and theaccounting profession, social and environmental reporting issues are discussed in

depth. The book also provides an insight into the role of financial accounting from

the perspective of a group of researchers who are often described as working from a

critical perspective.

Being divided into 12 chapters sequenced in a logical order, this book can

provide the entire core material required for a course on financial accounting

theory. Alternatively, the book can be used as a key text for more general courses

which include coverage of aspects of financial accounting theory. All of the

material within the book could realistically be covered in the average 10 to 12 week

university term, with chapters being studied in the sequence in which they are pre-

sented. Because it provides a balanced perspective of alternative and sometimes

conflicting theories of financial accounting, it also provides a sound basis for

readers contemplating further research in different areas of financial accounting.

In writing this book, a style has been adopted that enables students at both the

undergraduate and postgraduate level to gain a sound understanding of financial

accounting theory. Each chapter incorporates research from throughout the world,

Preface



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hence the book is of relevance to financial accounting theory students internation-

ally. Much of the explanatory material has been drawn from European practical

examples thus making the text even more accessible and relevant to students in

Europe. To assist in the learning process, each chapter provides learning objectives,

chapter summaries and end-of-chapter discussion questions. Throughout the bookreaders are encouraged to critically evaluate and challenge the various views

presented. To give the various perspectives a real world feel, many chapters use

recent articles from different newspapers, directly relating to the issues under

consideration.

In the five years since Craig Deegan wrote the Australian edition of this book, it

has proved very popular among both students and lecturers throughout Europe. In

addition to the academic coverage of the book, readers have praised the accessible

and engaging style in which it was written. This new European edition retains the

features of the Australian edition that students and lecturers found so appealing

and distinctive, such as use of straightforward explanations, frequent practicalexamples, and illustrations using newspaper articles. With many illustrations

drawn from European business and accounting situations, we believe this European

edition will be even more appealing, accessible and relevant to readers in Europe

than the earlier Australian edition. We have also taken the opportunity of updating

the text to reflect the sometimes significant developments in accounting theory in

the past five years.

Craig Deegan and Jeffrey Unerman

About the AuthorsCraig Deegan

Craig Deegan BCom (University of NSW), MCom (Hons) (University of NSW),

PhD (University of Queensland) is Professor of Accounting and Director of

Research and Development within the School of Accounting and Law at RMIT

University, Melbourne, Australia. Craig has taught at both undergraduate and

postgraduate levels at universities in Australia for more than two decades and has

presented lectures internationally, including within the United Kingdom, United

States, South Africa, France, China, Singapore, Hong Kong, Malaysia, South Korea

and New Zealand. Prior to working within the university sector Craig worked as a

chartered accountant in practice. He is a Fellow of the Institute of Chartered

Accountants in Australia.

Craigs research has tended to focus on various social and environmental account-

ability and financial accounting issues and has been published in a number of leading

international accounting journals, including: Accounting, Organizations and Society;

Accounting and Business Research; Accounting, Auditing and Accountability Journal;

British Accounting Reviewand The International Journal of Accounting.

xii PREFACE



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Jeffrey Unerman

Jeffrey Unerman BA (CNAA), MSc (London), PhD (Sheffield), ACA, ILTM is

Professor of Accounting and Corporate Accountability in the School of

Management at Royal Holloway, which is one of the larger colleges of the

University of London. He has taught at both undergraduate and postgraduate levels

at universities in the UK since 1992. During this time he has also addressed

audiences internationally in Ireland, France, Spain, Sweden, the Czech Republic,

Lithuania, Belarus, the USA and Australia. Before joining the academic sector, he

qualified as a chartered accountant (he is a member of the Institute of Chartered

Accountants in England and Wales) and worked both in practice and commerce.

His research, which has been published in a range of international academic

journals including Accounting, Organizations and Society; Accounting, Auditing

and Accountability Journal; Critical Perspectives on Accounting; The European

Accounting Reviewand Accounting Forum focuses on issues of accountability bothfor social and environmental performance and for the management of intellectual

capital. He has worked on several research projects with other academics in the UK,

Ireland, the Netherlands and Australia, and is a member of the Research Committee

of the ACCA.

PREFACE xiii



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xiv

Learning Objectives

Each chapter opens with a set of learning objectives,

summarising what students should learn from each

chapter.

Opening issue

This section introduces the chapter by providing a

topical debate issue for students to consider while

they progress through the chapter.

Exhibits

To give the various perspectives covered a real-

world feel many chapters include recent articles from

a variety of newspapers, directly relating to the issues

under consideration.

Guided tour

Opening issues

(a) Throughout the worldin recent yearsa numberof industrieshavebeenderegulated,for example,the bankingindustry, the telecommunications

industryandtheairlineindustry.Therewerenumeroussimilarcallsforareduction in accounting regulations prior to the widely publicized

accountingscandalsat Enron andotherlarge companiesin recent years(thesecallsusedsuchterminologyas accountingstandardoverload) b u t

what couldsome ofthe implicationshavebeen iffinancial accountingwasderegulated?

Upon completingthischapter readersshould:

understandsomeofthevarioustheoreticalargumentsthathavebeen proposed

in favourof reducingthe extent ofregulation offinancialaccounting;

understandsomeof thevarioustheoreticalargumentsfor regulatingthepracticeoffinancial accounting;

understandvarioustheoreticalperspectivesthat describewho islikelyto gain

thegreatest advantagefromtheimplementation ofaccountingregulation;

understandthat accountingstandard-settingis a verypoliticalprocess which

seeksthe viewsofa broadcross-section ofaccount users;

understandthe relevanceto theaccounting standard-setting process of

potentialeconomicand socialimpactsarising fromaccountingregulations.

Learning Objectives

The regulation of financial

accounting

CHAPTER 3

55

videdby PositiveAccountingTheory). Theextent ofthe opportunisticaccountingactivitiesoften onlybecomesevident followingcorporatefailure,at whichtime the

extent ofasset overstatement willbe highlighted.The followingdiscussion addressesthe variouscontractual arrangementsthat

mayexist between ownersand managers,and between debtholdersandmanagers,particularlythosecontractual arrangementsbasedon theoutput ofthe accounting

system.Again,thesecontractualarrangementsare initiallyassumedto beput inplaceto reducetheagency costsofthe firm(the efficiencyperspective).However,it

isassumedby PositiveAccountingtheorists that oncethe arrangements areinplace,partieswill, ifthey can,adopt manipulativestrategiesto generatethegreatest

economicbenefits to themselves(the opportunisticperspective). The followingmaterialalso considersthe politicalprocessand how firmsmight useaccountingto

minimizethe costsof potentialpoliticalscrutiny.

Whilst some researchers tendto utilizeeither the efficiency or opportunisticperspectives of Positive AccountingTheory to explain particularaccounting

choices,it shouldbe notedthat in realityit isoften difficult to firmly concludethatan accountingchoicewas driven solelyby an efficiencyor an opportunistic

motivation.AsFields etal.(2001) state:

Unconstrainedaccountingchoiceis likelyto imposecostson financialstatement users

becausepreparersare likelyto haveincentivesto conveyself-servinginformation.

OPPORTUNISTIC AND EFFICIENCY PERSPECTIVES 223

Dutch supermarket admits 317m error

AccountancyAge.com

Ahold, the Dutch-based supermarket giant, has admitted that it overstated

its profits by at least $500m (317m).

As a consequence, the company said its chief executive and chief

financial officer would be leaving, while an investigation into its US food

distribution division has begun.

It has also postponed its annual results, which were meant to have beenannounced on 5 March.

The news sent shock waves through the market as Aholds share price

tumbled 40%.

The trouble is believed to be centred around US Foodservice, Aholds

distribution service, over the way it accounted for income.

The company is already saddled with massive debt problems fuelled by

an aggressive acquisition strategy, which has made merging different

accounting practices together difficult.

Accountancy Age, 24 February 2003

Exhibit 7.1 Caption

Opening issues

At thebeginningof eachchaptera numberof issuesorproblems areraised that

relateto thematerial covered.On completion ofthe chapteryoushould beableto supplyanswersto theproblems.In thisintroductorychapter,someofthe

issuesthat wecan initiallyconsiderare asfollows:

Whydo studentsoffinancialaccountingneedto botherwiththe studyoftheories? Why not just study somemore of thenumerousaccounting

standards(andthere arecertainly plentyofthem!) orotherpronouncementsofthe accountingprofession?

Upon completingthischapter readersshould:

understandthat thereare manytheories offinancial accounting;

beaware ofthe importancethat knowledgeofdifferent accountingtheorieshasin understandingandevaluating variousfinancialaccounting practices;

understandthat thedifferent theoriesof financialaccounting areoftendevelopedto perform different functions,such as to describeaccounting

practice,orto prescribeparticularaccountingpractices;

understandthat theories,includingtheories ofaccounting,are developedas

a result ofapplyingvariousvaluejudgementsand that acceptanceof onetheory,in preference to others,will in part betied to onesown value

judgements;

beawarethat weshouldcritically evaluatetheories(in termsofsuch thingsas

theunderlying logic, assumptions made,and evidenceproduced) beforeacceptingthem.

Learning Objectives

Introduction to financial

accounting theory

CHAPTER 1

1



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Chapter summary

This briefly reviews and reinforces the main topics

students will have covered in each chapter to ensure

they have acquired a solid understanding of the key

topics.

Questions

This end-of-chapter feature is the perfect way to

practice the techniques students have been taught and

apply the methodology to real-world situations.

GUIDED TOUR xv

Questions

4.1 In the context of financialaccounting, what is harmonization andorstandardization?

4.2 Identifysome factors that might be expectedto explain why different

countriesusedifferent systemsofaccounting.

4.3 After considering theHofstedeGraymodel,brieflyexplain thehypo-thesizedlink between society values,accounting values andaccountingpractice.

4.4 Anyeffortstowards standardizingaccountingpracticeson an internationalbasisimpliesa beliefthat a one-size-fits-allapproachisappropriate. Isthis

naive?

4.5 Whileit isoftenarguedthatwithinparticularcountriesthereshouldbe

someassociationbetween variousvaluesystems andaccounting systems,itisalsoargued(forexample,byBaydounandWillett,1995)thatovertime

manyeventswouldtypicallyhave occurredthatconfound thisexpectedrelationship.Whattypeofevents mightconfoundtheexpectedrelationship?

4.6 Baydoun andWillett (1995,p.72) identifya numberofproblemsin testingtheHofstede Graytheory. Theyemphasize that manyaccounting systemsareimported fromother countrieswithpossibly different cultures.Astheystate: Dueto the interferencein what wouldotherwisehave been the

natural evolution of financialinformation requirements,there areno

uncontaminatedexamples ofmodern accountingpractices in developingcountries.Consequently great carehasto betaken in usingdata from

developingcountriesto draw inferencesabout relevanceon thebasisof theHofstedeGray framework.Explain thepoint ofview beingprovided byBaydoun andWillett.Do youbelievethat theyarecorrect?

4.7 Asnoted in thischapter, Hamid,Craigand Clarke (1993) providean

argument that religion can havea major impact on theaccountingsystemchosen by particularcountries and that before Westernmethodsof

Whilemany researchersquestion therelevanceof Western styleaccountingstandardsacrossallcountries,effortsbya number ofinternationalorganiz-

ations are nevertheless continuingto encouragequite culturally-disparatecountriesto adopt IASsIFRSs.Thisimpliesthat themembersofsomeinter-

nationalorganizationsare either unaware ofthe literature, oralternatively,chooseto reject it asirrelevant.As effortsbya numberof countries,in particular

membersof theEU, continuein relation to thedomestic implementation ofinternationalstandards,it isto beexpectedthat thisdebate willcontinue.

QUESTIONS 115

CHAPTER SUMMARY 299

Thischapter providesa numberofperspectives about whymanagement elects

to makeparticular disclosures.Specifically,it reviewslegitimacytheory, stake-holdertheoryand, briefly,thenewly emergent (in a financialreportingcontext)

institutionaltheory threetheoriesthat can beclassifiedas systemsorientedtheories.Systemsoriented theoriessee theorganization asbeing part ofa

broadersocialsystem.Legitimacytheory, stakeholdertheoryand institutionaltheoryare alllinked

to politicaleconomytheorywherein thepolitical economy constitutes thesocial,politicaland economicframework within whichhuman lifetakes place

andsocial,political andeconomicissues areconsideredas inseparable.Politicaleconomytheorycan beclassifiedas either classicalor bourgeois. Bourgeois

politicaleconomytheoryignores varioustensionswithin societyandacceptsthe

world asessentially pluralistic withno particularclassdominatinganother.Legitimacytheoryand stakeholder theory adopt thebourgeois perspective.Institutionaltheorycan adopt eitherthe bourgeoisorclassical perspective.

Legitimacytheory reliesupon thenotion ofa socialcontract,which isanimpliedcontract representingthenorms andexpectationsof thecommunity in

whichan organization operates.An organization isdeemedto belegitimate totheextent that it complieswiththe termsof thesocial contract.Legitimacyand

theright to operateareconsideredto go handin hand.Accountingdisclosuresareconsideredto represent oneway in whichan organization can legitimizeits

ongoing operations. Wherelegitimacy is threatened, disclosures are onestrategyto restore legitimacy.In practice,policiesto maintain or restore

corporatelegitimacy aresometimesarticulatedin termsof reputation riskmanagement.

Two different categoriesof stakeholdertheory have been reviewed,thesebeingtheethical (ornormative)branch,and themanagerialbranch. Theethical

branchof stakeholdertheorydiscussesissuesassociatedwithrightsto infor-mation,rightsthat shouldbe met regardlessof thepowerofthestakeholders

involved.Within theethical branch,disclosures are consideredto berespon-sibilitydriven.The managerialbranchof stakeholdertheory,on theotherhand,

predictsthat organizationswilltendto satisfytheinformation demandsofthosestakeholders who are important to the organizations ongoing survival.

Whethera particularstakeholderreceivesinformation willbe dependent upon

how powerfulthey areperceivedto be,with poweroften consideredin termsofthescarcityof theresources controlled by therespectivestakeholders.The

disclosureof information isconsideredto represent an important strategyinmanagingstakeholders.

Chapter summary



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Online Learning Centre (OLC)

After completing each chapter, log on to the supporting Online Learning Centre

website. Take advantage of the study tools offered to reinforce the material you

have read in the text, and to develop your knowledge of financial accounting

theory in a fun and effective way.

Resources for students include:

Weblinks

Also available for lecturers:

Solutions Manual PowerPoint Slides Group Assignments

Technology to enhancelearning and teaching

xvi

Visit www.mcgraw-hill.co.uk/textbooks/deegan today



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For lecturers

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xvii



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Authors Acknowledgments

Many people must be thanked for helping us write this book. Professor Rob Gray

from the University of St. Andrews is to be thanked for very useful and insightful

advice provided in the initial development of this book and, through his Centre for

Social and Environmental Accounting Research, for generously providing a great

deal of useful research material. We also thank Professor David Owen from the

University of Nottingham for his incisive advice and encouragement throughoutthe writing of both editions of this book. Dr Julie Cotter from the University of

Southern Queensland is also to be thanked for her views about how the book

should be structured and for her assistance in the writing of Chapter 10. In relation

to development of the original Australian edition, we also thank Professor Reg

Mathews (Charles Sturt University), Brian Millanta (Macquarie University), Colin

Dolley (Edith Cowan University), Dean Ardern (La Trobe University), Natalie

Gallery (University of Sydney), for providing critical comments in relation to a

number of the chapters, and Tanya Ziebell (University of Queensland) for

unearthing some difficult-to-find research papers.

In developing this European edition, we are very grateful for the helpful, percep-tive and constructive comments and for their strong encouragement provided

by Professor Brendan ODwyer (University of Amsterdam), Professor Richard

Laughlin (Kings College, University of London), Alan Murray (University of

Sheffield) and, as noted above, Professor David Owen (University of Nottingham).

We are also especially grateful to Franco Zappettini for his encouragement,

patience and support, and to our colleagues at Royal Holloway and RMIT for their

ongoing support, particularly John Ahwere-Bafo at Royal Holloway for his work on

the companion website. Lastly, we thank the staff at McGraw-Hill for supporting

this project. Particular thanks go to Mark Kavanagh, Natalie Jacobs and Deborah

Hey in the UK and to Luisa Cecotti and Valerie Reed in Australia.We hope readers continue to find this European edition interesting, informative

and enjoyable to read, and we welcome constructive feedback.

Publishers AcknowledgmentsOur thanks go to the following reviewers for their comments at various stages in

the texts development:xviii

Acknowledgements



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Patrick Devlin Caledonian Business School

Reggy Hooghiemstra Erasmus University, Rotterdam

George Iatridis University of Manchester

Carolyn Isaaks Nottingham Trent University

Chris Knoops Erasmus University, RotterdamAlan Murray Sheffield University Management School

David Owen University of Nottingham

Margaret Woods University of Nottingham

Thanks to companies and organisations who granted us permission to reproduce

material in the text. Every effort has been made to trace and acknowledge

copyright and to obtain permissions to reproduce material in the text. The

publishers would be pleased to make arrangements to clear permission with any

copyright holders it has not been possible to contact.

PUBLISHERS ACKNOWLEDGEMENT xix



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