Morgan (1988) in his article has argued that accountants put forth effort to create reality instead of reflecting what reality is. It has been argued that the accountants reflect one sided views of reality majorly because of the difficulty being faced by the accountants while representing reality. It has been argued that apart from creating reality, the accountants also has the ability to shape the culture of an organization. The article also throws light on the topic that accounting and objectivity is a myth and, it majorly involves subjectivity while dealing with the reality of the organization. The author, by giving different point of views has tried to prove his main point that the accountants do not reflect reality and instead they create reality depending upon the situations and their knowledge and experience.
I agree with the author here that it is a myth that accounting uses objectivity. I believe that the accountants have adopted the practice of showing the world what they believe is the reality, as also argued by Demar (2006). Demar (2006) argues that accounting like politics have started to reflect the story in the best possible light. It has been believed that there are cases where figures that have no importance are reflected in the accounting statements, which can be easily ignored. However, this is not a matter of coincidence rather it is done by the accounting professionals as they chose to remain subjective by reflecting figures and pretending to be objective. This adds to irrelevancy of figures, which results in compilation of huge amounts that have no importance. Hence, it is considered by many that objectivity is a myth in accountancy (Aktoor, 2015). It has been claimed by D. Mayo that the accountants use subjective factors to represent their work but try to pretend that they are using the objective factors. Discretionary choices are used by the accountants to test the figures of the company. These discretionary choices are subjective in nature (Mayo, 2016).Lynn Segal has also argued that accountants believe that the world will believe in what we perceive and know and present to them (Segal, 2009).
I agree with the fact that accounting has impact on culture of an organization. It has been argued by Jeremy F. Dentthat the accounting practices being adopted by the organizations have a great impact on the culture of the organization. Adoption of any new accounting practice influences reconstruction of the organizational culture (Dent, 2010).
This article has helped me to understand the fact that financial performance is one of the main goals and objectives of any business. As a result, all the possible efforts are taken to achieve this objective. Accounting plays the main role in financial performance as the choice of accounting principles and systems has direct impact on the organizations performance. So, it is not wrong to say that accounting has direct impact on the culture of the organization and hence, I agree with Morgan’s argument that accounting and organizational culture are directly related and the accounting practices adopted influence the culture of the organization.
Aktoor, 2015. Is Accounting really Objective? [Online] Available at: https://medium.com/@Aktoor/is-accounting-really-objective-e30ddfb35474 [Accessed 2018].
DeMar, G., 2006. The Myth of Objectivity. [Online] Available at: https://americanvision.org/1360/myth-of-objectivity/ [Accessed 4 September 2018].
Dent, J.F., 2010. Accounting and Organizational Cultures: A Field Study of the Emergence of a New Organizational Reality. Accounting Organizations and Society, 16(8), pp.705-32.
Mayo, 2016. The Myth of ‘The Myth of Objectivity”. [Online] Available at: https://errorstatistics.com/2016/09/18/the-myth-of-the-myth-of-objectivity-i/ [Accessed 2018].
Segal, L., 2009. The Myth of Objectivity. New York: Springer.