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ACCOUNTING REQUIREMENTS OF STOCK EXCHANGES, 1933.

Frank P. Smith
The Accounting Review 1937 12(2), 145-153
Abstract The article presents a study that is an attempt to describe and evaluate requirements of some leading securities exchanges as of 1933. The need of stockholders for corporate reports has tended to coincide with the increasing importance of corporations as a type of business organization. But many factors other than wishes of stockholders have influenced the development of corporate reporting and accounting policies. In the early period of corporate regulation in the U.S., the legislation restricting operations of railroads possibly exerted some influence; some of the leading financial journals carried on active campaigns for better reporting practices. Stock exchanges, the factor with which the paper is principally interested, began to require accounting statements as a part of their expanding listing requirements. Prior to 1938, legislation played, but a minor part in the development of reporting and accounting policies of American industrial corporations. These legislative devices represent new approaches to the problem of securing adequate presentation of corporate operations.

REFORMULATION OF THE CONCEPTS OF CAPITAL AND INCOME IN ECONOMICS AND ACCOUNTING.

Frank A. Fetter
The Accounting Review 1937 12(1), 3-12
Abstract This article seeks the role of capital and income in economics and accounting. Examination of a sample of current accounting literature discloses a much divided opinion as to the relationship between economic and accountancy concepts and theory. The general attitude of accountants seems to be that the economic concepts may be valid in their own field, but they can't be adopted and applied to accounting purposes. It should be observed that the close contact of accountants with the bard realities of business has made more difficult for them the task of formulating logical and consistent concepts for their own use. But, surely it is the highest duty of both accountants and economists, while meeting the legal and practical demands of the moments, to point the way towards true economic conceptions in the law instead of merely passively submitting to its sometimes blundering dictation. The primary and central problem of business and hence of accounting and finance, will always be income. Economists and accountants agree that income is something related to capital.