Knowledge that Transforms

Abstract "There is no accounting for tastes," an eminent playwright assures, and all teachers have met people with no taste for accounting. Aside from the question of whether cost or market valuation shall be applied at all, it may be decided, according to someone's fancy, whether the rule shall be applied to the totals of the alternative values or to individual items or classes. The difference in result may be marked indeed. There is an uncertain distinction to be drawn which could be removed only by eliminating an alternative and that a choice may always be exercised when a situation qualifies for the pooling treatment. The clash of accounting tastes the matter of minority interest in intercompany profits suggests itself. The issue here concerns assets sold by a subsidiary, not wholly owned, which are retained by the parent at the time of preparation of consolidated reports. Taking inventory as an example, the choice lies between showing the part purchased from the subsidiary at the cost of its acquisition by the subsidiary or at this cost plus a percentage of the profit on these sales equal to the percent of minority ownership. The effect on consolidated book value of inventory would be relatively small, though the effect on minority interest might be substantial.

Reviews the book "Principles and Practice of the Chinese Abacus," by Lau Chung Him.

Reviews the book "Intermediate Accounting--A Functional Approach," by C.A. Moyer and R.K. Mautz.

Reviews the book "Accounting Systems," by Cecil Gillespie.

Abstract The many approaches used in introducing a beginning student to the field of business seem to indicate that finding an appropriate first course in business is one of the more difficult aspects of curriculum planning. Such a course, in addition to acquainting the student with the basic concepts of business, should also teach the various interrelationships between the various functions within a business and the basic relations of a business with other segments of the business world. Since most students specialize in one function during the later years of their academic training it certainly seems important to give them an integrated view of a business entity as early as possible. The beginning course in accounting is an ideal vehicle for introducing students to basic concepts and interrelationships of the business world. In this paper we propose a "flow chart" which might be used effectively as a teaching tool in several beginning courses of business including the first course in accounting. This chart, used as a visual aid device, should help students attain the aforementioned objectives of introductory courses. In later accounting courses the chart might also prove useful in the presentation of fund statements and cash flow statements.

Abstract This article examines the present status of the public accounting profession in Japan. At present there are four kinds of professional accountants in Japan: certified public accountant (CPA), assistant CPA, Foreign CPA and registered CPA. According to the CPA law those who are successful candidates for the CPA Intermediate Examinations are authorized to practice public accounting under the title of Assistant CPA, however they cannot perform the statutory audit under the Securities Exchange Law. Those who have met requirements in foreign countries corresponding to Japanese CPA qualifications and have a sufficient knowledge of Japanese laws and ordinances concerning accounting may practice the profession if their qualifications have been approved by the Japanese Minister of Finance. Such persons must use the title of "Foreign CPA." The agency authorized to control the activities of professional accountants is the Financial Bureau of the Ministry of Finance which registers all practicing accountants.

Reviews the book "Elementary Accounting," 4th ed., by Arnold W. Johnson.

Abstract In recent years, there has been a desire to incorporate managerial controls into the introductory cost accounting course. Many educators have raised the objection that this cannot be done in a one semester course and if an attempt is made to introduce managerial controls, the course will be so diluted that the student will receive no benefit out of it. This article will show that managerial controls can be built into an introductory cost course. The term "managerial controls" is used in the broad sense to include more than control per se; for purposes of this discussion it is equated to "managerial accounting." The term "managerial accounting" must be defined before an attempt is made to see how it may be incorporated into a college course of introductory cost accounting. If the course is given as outlined, adequate coverage of all topics can be achieved if proper allocation is made of class time. Class time should be taken up with discussions of managerial aspects with de-emphasis on mechanics as only the major points of a problem need to be covered in class. Simple does not necessarily mean superficial and depth can be achieved by exploring the concepts under simple problem conditions.

Abstract The article discusses the implications of programmed learning and teaching machines in the field of accounting education. Programmed learning appears to be most useful in teaching fundamental concepts and definitions, basic techniques such as journalizing and posting, analysis of financial statements by means of ratios, analysis of variances in a standard cost system, and similar subjects requiring a knowledge of meaningful facts. The most practical solution to the problem of automatic accounting instruction is first to develop units of material and then fit them into the curriculum. This approach would speed the introduction of automated instruction and would be of tremendous help in teaching basic concepts. Instructors could then use this time for reasoning and analysis to make the learning more stimulating and productive. Teaching would be at a higher professional level. Reducing the cost of programming is one of the major economic problems that must be solved. There is no guarantee that programmed learning will save money or solve the teacher shortage, but if the research experience makes traditional teaching and textbooks more effective, education will gain.

Abstract It has become an objective of some of the members of the faculty at the University of Massachusetts to deal with all the subject matter offered in the School of Business Administration as the philosophy, information and skill necessary and appropriate to the general problem of administration. In order to maintain and communicate this focus it is necessary to organize classes around more fundamental subject classifications. These classifications are in terms of what managers need to be able to do rather than in terms of the responsibilities and activities of persons who occupy particular niches in an organization chart. One of the problems which this approach creates is a greater difficulty in conveying to a student the relevance of a particular course to his educational objectives. It was relatively simple to explain that there is some one called a sales manager, or controller, or treasurer whose shoes one day he might fill. Since not all business problems are amenable to a quantitative analysis, and since very many different kinds of problems are amenable, it is useful in an introductory way to examine the functions which numbers can perform.