WALTER JOHN KENLEY
ACCOUNTING STANDARDS PIONEER
11-10-1924 - 5-10-2012
DR JOHN Kenley, who has died at Castlemaine several days before his 88th birthday, was a pioneer in the development of Australian accounting standards through his work with the Australian Accounting Research Foundation from 1968 to 1977, and later became an influential practitioner and prominent author.
The foundation, established by the main Australian professional accounting bodies after highly publicised company failures in the early 1960s, was seen as a vehicle for countering criticism of deficient financial-reporting practices. It was the forerunner to the current Australian Accounting Standards Board.
Appointed in 1968 as the foundation's first full-time employee, Kenley wrote its first major research publication, A Statement of Australian Accounting Principles (1970). Adapted from an earlier US work to reflect Australia's institutional framework and existing financial-reporting recommendations, it became an important reference for developing a conceptual framework for future Australian accounting standards. On a Churchill fellowship in 1970, Kenley undertook a 12-week study tour of professional accounting bodies in Britain, Canada, the US and South Africa to examine the resources and approaches used in accounting research overseas. His report significantly influenced the foundation's direction and structure.
Becoming director of the foundation in 1971, he collaborated with a visiting US academic, George Staubus, to produce Objectives and Concepts of Financial Statements (1973), which was controversial at the time for its advocacy of cash-flow reporting, but is now seen as prescient. A later collaboration with a New Zealander, Professor Tom Cowan, resulted in Case Studies in Financial Accounting, which was widely used for many years in tertiary accounting courses in Australasia.
By the time Kenley resigned from the foundation in 1977 to join Hungerfords (now KPMG) - where he later became national technical partner - he had written prolifically in professional journals and lectured frequently on a wide range of accounting and auditing topics. While at Hungerfords, he, along with chartered accountant Michael Sharpe, was behind the Accounting Research Foundation's creation of the Auditing Standards Board in 1981.
He left what had evolved into the international financial services firm KMG Hungerfords in 1987 to work as part-time technical consultant for CCH Australia. His publications for CCH included the Guidebook to Australian Accounting Standards (1990-92), Franchising in Australia: the Accounting Implications and Accountants in the Raw - a Guide to Entering Public Practice as a Chartered Accountant. He retired from active consulting and writing in 1993.
Born in working-class Coburg in 1924, Kenley matriculated from Coburg High School to join the public service in early 1941 as a clerk in the Department of Supply and Development. In the following year he enlisted in the Australian Air Force and was posted to remote Exmouth Gulf in Western Australia as a radar operator, a task he blamed for eyesight problems he suffered later in life. At Exmouth his duties also included operating the kerosene-fuelled lighthouse.
After the war, he completed a bachelor of commerce degree at the University of Melbourne in 1948, followed by a master of commerce in 1954 for a thesis examining the effects of World War II on secondary industry in Australia. His doctorate, from California Western University in 1978, was earned with a thesis on the objectives of financial statements.
Within the public service, he transferred to the Department of Shipping and Transport in 1951 as senior research officer, where he was involved in Commonwealth-state relations on road funding and motor-vehicle charges, work that stood him in good stead when he moved to the Commonwealth Grants Commission in 1960 as senior finance officer. He left the public service in 1962 to join the Australian Society of Accountants (now CPA Australia) as its first technical officer, in which role one of his early tasks was to write a history of the body. It was titled History of the Australian Society of Accountants and its Antecedent Bodies, 1887 to 1962.
His "no-frills" personality and appearance - which may have caused him to be underestimated by some in the accounting profession - was also reflected in his enormous body of written work, which was characterised by a simple, direct prose style.
Kenley's marriage to Alison Gedye in 1952, ended tragically when Alison died at the age of 36 from a cerebral haemorrhage the day after he returned from his Churchill fellowship tour. This left him responsible for five children aged from eight to 16. A second marriage in 1978 to Kathleen Bryson ended in divorce 18 years later.
In his last years, living in Castlemaine, he would willingly draw on his rich experience in the profession to discuss financial reporting topics with scholars and students who made the effort to meet him. Authors and editors were also liable to receive his handwritten comments on the contents and formats of their publications.
He is survived by his children, David, Heather, Andrew, Bronwyn and Bruce and by his cousin, Elaine Warren, of Castlemaine, who provided great support in his later years.
Frequently Asked Questions about this Article…
Who was Dr John Kenley and why is he important to Australian accounting standards?
Dr John Kenley was a pioneering accountant and author who led the Australian Accounting Research Foundation (AARF) from 1968–1977. He wrote foundational research such as A Statement of Australian Accounting Principles (1970) and co‑authored Objectives and Concepts of Financial Statements (1973). His work helped shape the conceptual framework that became the forerunner to today’s Australian accounting standards.
What was the Australian Accounting Research Foundation and how did it influence financial reporting?
The Australian Accounting Research Foundation (AARF) was established by the main professional accounting bodies after high‑profile company failures in the early 1960s. According to the article, the AARF served as a vehicle to counter criticism of deficient financial reporting and was the forerunner to the current Australian Accounting Standards Board, helping to professionalise and standardise financial reporting in Australia.
What is A Statement of Australian Accounting Principles (1970) and why does it matter to investors?
A Statement of Australian Accounting Principles (1970), written by Kenley as the AARF’s first major research publication, adapted earlier international work to Australia’s context. The article says it became an important reference for developing a conceptual framework for future Australian accounting standards — providing investors with a more consistent basis for comparing company financial statements.
Why did Kenley advocate cash‑flow reporting and what does that mean for everyday investors?
Kenley co‑authored Objectives and Concepts of Financial Statements (1973), which controversially advocated cash‑flow reporting at the time and is now described in the article as prescient. For everyday investors, clearer cash‑flow reporting helps reveal how businesses generate and use cash, complementing profit figures and improving the ability to assess a company’s financial health.
How did Kenley contribute to auditing standards in Australia?
While at Hungerfords (which later became KPMG), Kenley — together with chartered accountant Michael Sharpe — was instrumental in the Accounting Research Foundation’s creation of the Auditing Standards Board in 1981, according to the article. That contribution helped formalise audit standards and oversight in Australia.
What roles did Kenley hold in practice and publishing, and how did that influence accounting guidance?
After leaving the AARF in 1977, Kenley joined Hungerfords (now KPMG) and later became national technical partner. He then worked as a part‑time technical consultant for CCH Australia, producing guides such as the Guidebook to Australian Accounting Standards (1990–92). These roles allowed him to translate standard‑setting research into practical guidance for accountants and preparers of financial reports.
Why do historical accounting reforms, like those Kenley worked on, matter to modern investors?
The article explains that reforms driven by the AARF and thinkers like Kenley responded to past company failures and criticisms of weak reporting. Those reforms established conceptual frameworks, promoted cash‑flow reporting and led to formal standard‑setting bodies — all of which contribute to clearer, more reliable financial statements that investors rely on today.
Where can investors see Kenley’s influence in today’s Australian accounting standards and reporting?
Kenley’s influence appears in the conceptual foundations of Australian accounting practice and in institutions that followed the AARF. The article notes the AARF was the forerunner to the modern Australian Accounting Standards Board and that Kenley’s early publications and advocacy (for example, on cash‑flow reporting) were important reference points for later standards and guidance.
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