Théodore Limperg

Limperg wanted to bring the accountancy practice and theory on a higher level. He published a series of articles starting in 1905 in the newly established Accountancy journal about the future direction of the profession, and its requirements. Another focus was on the relationship between accountancy and society. Limperg argued, that auditor reports should not only be prepared for direct clients, but for anyone who wants to take notice. The auditor should be the 'vertrouwensman van het maatschappelijk verkeer'( can be translated as the 'steward on behalf of society')

In 1905 he became editor-in-chief at the Accountancy journal. In his articles he criticized the Nederlands Instituut van Accountants NIvA (Dutch Institute of Chartered Accountants), of which he was a member as well. The institute didn't take this for granted. When the board of the institute came into conflict with a fellow member, J.G.Ch. Volmer,[4] Limperg chose his side. In 1906 Limperg was disbarred by Niva-governance. Many other members followed his example and stepped down. In the same year these dissidents jointly founded the Nederlandsche Accountants-Vereeniging NAV (Dutch Accountants Institute).[5]

In the years following Limperg would shape the organization a model accountancy organization. The Accountancy journal became the prime magazine of the association. The Nederlandsche Accountants-Vereeniging upheld stringent entrance requirements, and conducted its own examinations. A disciplinary board supervised the conduct of its members. The Nederlandsche Accountants-Vereeniging eventually merged into the Nederlands Instituut van Accountants in 1919. With the merge the new methods, quality standards for membership and the disciplinary board, became standard practice.

In 1923 after a dispute with the publisher Limperg started a new monthly accountancy magazine, entitled Maandblad voor Accountancy en Bedrijfseconomie (MAB), which still exists nowadays.

Beside the accountancy profession, Limperg campaigned for quality improvement of the Dutch business education and trade education on an academic level in a separate university. In 1913 he got his way, when in Rotterdam the Netherlands School of Commerce was founded, which in 1973 became the Erasmus University Rotterdam. In 1921 in the University of Amsterdam a new Faculteit der Handelswetenschappen (Faculty of Trade science) got started, which would become the Faculty of Economics and Econometrics.

Limperg would bear his mark on the organization and growth of the new faculty. He proposed additional auditor training, which started in 1929, and proposed to change its name to Faculty of Economics, which was implemented in 1935. Since 1987 it is named Faculty of Economics and Econometrics. Limperg was the standard bearer of the 'Amsterdam school' which aimed to develop a comprehensive and internally consistent theory of the business enterprise based on a few fundamental economic axioms. This contrasted with the approach taken in Rotterdam which was of a more practice-oriented and pragmatic nature. [6]

In his days, buildings, machinery and inventories on the balance sheet were traditionally validated based on historical costs; the costs paid to produce or to purchase the item. Another, better picture of the value can be determined based on replacement costs; the price one would pay to produce or to purchase the item. As a consequence, the assets of the company should be regularly reassessed. That provides a revaluation reserve, which is part of the equity.

This idea didn't originate from Limperg, but he did further develop the concept. His ideas had a decisive influence on the method of cost calculation and determination of profit in several Dutch companies, including Philips until 1992.[7]

The Dutch legislation offers a choice between valuation at historical cost or valuation at replacement cost. Even after the introduction of the International Financial Reporting Standards (IFRS) for listed companies that still applies. Under International Financial Reporting Standards, the company is required to pay for the replacement of the value to be taken. For equipment they may continue to use the replacement cost.

Some of the most noted students of Limperg.

• Abraham Mey (1890-1971), professor at the University of Amsterdam
• Salomon Kleerekoper (1893-1970), professor at the University of Amsterdam
• Henri Johan van der Schroeff (1900-1974), professor at the University of Amsterdam
• Jacob Louis Mey (1900-1966), professor at University of Groningen until 1964 and then Technische Universiteit Delft
• Jacobus Franciscus Haccoû (1903-1972), professor at the University of Amsterdam
• Louis Jacques Zimmerman (1913-1998), professor at the University of Amsterdam
• Joop Klant (1915-1994), professor at the University of Amsterdam, also a prose writer
• Gerard Leonard Groeneveld (1904-1989), professor at the Catholic University Tilburg, delivered the collected works of Limperg

Because many proponents of Limperg's theories taught at the University of Amsterdam (like Limperg himself), they are often called the "Amsterdam School" of accountancy.[8]

Limperg can be seen in many ways as a social democrat. He didn't emphasize his political views too much, to uphold his position as scientist, but he was politically engaged. In November 1938 he co-authored with fourteen others (among them the later Minister of Finance Piet Lieftinck), an open letter to the government regarding the policy of public finance. The manifesto opposed the conservative politics promoted by the direct advisers to the government, and called for a more active economic policy. Limperg also espoused the Plan van de Arbeid (Labor Plan), a plan to combat the economical crisis, drawn up by Hein Vos and Jan Tinbergen in the early thirties.

After the Second World War Limperg took a seat in the Board of Trustees of the scientific department of the Nederlands Verbond van Vakverenigingen (Dutch Trade Union Confederation).