THE PROCESS OF ACCOUNTING INNOVATION: THE PUBLICATION OF CONSOLIDATED ACCOUNTS IN BRITAIN IN 1910

The first known example of a consolidated balance sheet published by a British company was made available to shareholders of the Pearson and Knowles Coal and Iron Company Ltd. in 1910. This paper examines the reasons for this accounting change and investigates the source of the necessary expertise. The conclusion reached is that, in common with many other accounting innovations, evolutionary change occurred as the result of modifications to an existing business practice.