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EARNED SURPLUS.

The Accounting Review 1930 5(3), 252-253
Abstract This article presents information on the report of the committee of the American Institute's on the definition on earned surplus. The definition, as finally revised, follows: "Earned surplus is the balance of the net profits, net income, and gains of a corporation after deducting losses and after deducting distributions to stockholders and transfers to capital-stock accounts." Further on in the committee's report net profits, net income, and gains are described as including "profits from the disposition of any corporate asset and arise from transactions resulting in the acquisition of cash or of property which at the time of its receipt may ordinarily be classified as or converted into, a current asset or from transactions in which the consideration received includes the complete or partial discharge of a liability." The hope is thus indirectly expressed that any newly-created revaluation surplus will be treated as indicated in last year's report. Disclosures and qualifications and their repetition on successive balance sheets are subjects concerning which much remains unsaid. They are likely to be the subjects of rules of conduct which the future holds in store for the profession. In the meantime they must be discussed fully and frankly if definitions and uniform practices are to be adopted by the profession and their wording must be significant and must, furthermore, become a definite addition to the parlance of the financial world.

THE BUSINESS PERIODICALS OF GERMANY.

Kurt Schmaltz
The Accounting Review 1930 5(3), 231-234
Abstract This article focuses on the comparative analysis of the business periodicals of Germany and the U.S. Periodicals like "The Accounting Review" and "The Journal of Accountancy" simply do not exist in Germany, at least not as scientific periodicals. The German periodicals cover the whole field of business economics. Only recently is specialization noticeable, based upon purely practice considerations, and this, to be sure, partly under the influence of its American models. The German periodicals can best be compared with the Harvard Business Review, although even there the field of finance and marketing is prominently emphasized. Some of the articles therein, would also, in Germany, be considered in the field of political economy. One might object that the contrast between the working out of the study of business economics in the United States and in Germany is not quite so sharp as seems emphasized here. In Germany the two subjects, Political Economy and Business Economics, are two widely separated sciences. This may occasionally be deplored, yet each of the subjects places value upon its particular point of view, although both are working' toward the same objective.

CORPORATION AUDITING REQUIREMENTS UNDER THE GERMAN COMMERCIAL LAW.

Wilhelm Voss
The Accounting Review 1930 5(4), 305-307
Abstract In almost all German corporations it is at present customary to check up all accounting statements especially the annual balance sheet and profit and loss statement. This work is done by separate auditors or auditing companies. The law, however, does not as yet require an audit. According to the law at present the Supervisory Council as the controlling agent of the corporation is required to supervise all phases of the business including the examination of the financial statements and annual closing entries in order to report thereon at the general stockholders' meeting. The audit function is, therefore, in accordance with the present German law, included in the general control function of the Supervisory Council. The appointment of separate auditors is according to law necessary only in special cases. The Board of Directors in the cases under Section 266, is to allow the auditors to examine the books and papers of the company and also the cash, securities, and goods as well.