Abstract Reviews several books. "Federal Tax Handbook," by Robert H. Montgomery; "Studies in Federal Taxation," by Randolph E. Paul; "Federal Income Tax Accounting," 2nd ed., by Stewart Y. McMullen.
Abstract Business management must establish policies to distinguish between capital and revenue expenditures in order to maintain and successfully operate an accounting system, which provides for the classification and control of depreciable fixed assets. Certain standards must be devised by accounting or engineering department in order to separate capital from expense items. The adoption of such policies and standards is more important now than ever before because of management problems involved in fulfilling defense contracts. Accurate costs have to be determined whether or not the type of governmental supply contract is described as a fixed-price, cost-plus-a-fixed-fee, or cost-plus-a-percentage-of-cost contract. Emergency facilities, including land, buildings, machinery and equipment, used for the purpose of completing a defense contract can be amortized over a period of 60 months if certain government regulations and requirements ate followed. Therefore, it becomes necessary for the management to distinguish carefully between costs coming under a supply contract and costs involved in capital expansion.
Abstract The article focuses on questions on standards governing accounting. In an attempt to clarify some of the points raised by critics relating to accounting standards in the book, "An Introduction to Corporate Accounting Standards," the author has collected some questions from the correspondences and tried to answer them in his own views. To a question whether or not the phrase "measured consideration" is merely another way of saying money value and if there is any evidence to prove that the term "measured consideration" is more appropriate than the word "value" to indicate the subject matter of accounting, the author replies that he does not know of any evidence that could prove that one term was better than the other. He also comments that he is prejudiced against the use of the term "value" to indicate the subject matter of accounting. To a question why facts are more objective and verifiable now than they used to be before the author replies that modern complexities do seem to place difficulties in the path.
Abstract Forty-four states in the U.S. and territories and the District of Columbia have adopted as their written examination for candidates for the certified public accountant certificate the standard examination prepared by the American Institute of Accountants. The committee on enrollment and disbarment of the Treasury Department has recently adopted the Institute's problems in accounting theory and practice as a part of its examinations for candidates for a treasury card who are not members of the Bar nor certified public accountants. The responsibility for producing the standard examination rests with the Institute's board of examiners. The Institute's board believes that the certified public accountant certificate should signify that its holder is qualified to practise public accounting and has passed an examination that tests his practical ability as well as his theoretical knowledge. Members of a number of state boards have suggested that the standard of knowledge and ability properly expected of a candidate for the certified public accountant certificate should be that of a senior staff accountant, and the standard examination is intended to require ability of about that level.
Abstract The article presents information about current deficiencies in financial statements. One of the principal functions of the U.S. Securities and Exchange Commission is to make available to investors reasonably complete and accurate information about the business affairs of issuers whose securities are listed on national securities exchanges and issuer whose securities are publicly offered for sale in interstate commerce or through the mails. To this end, the Securities Act requires such issuers to file with the commission reports that are designed to furnish some of the basic information needed in appraising these securities. The Commission's examination of these filings culminates either in their becoming effective without amendment or in the issuance of a memorandum which will either cite deficiencies to be corrected by amendment of the instant filing, or note suggestions to be observed in the preparation of future filings. Failure to correct deficiencies cited may result in stop-order or delisting proceedings.