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DEPRECIATION AND REPAIR COSTS.

D. R. Scott
The Accounting Review 1929 4(2), 116-120
Abstract In this article the author contends that an accurate allowance for depreciation must take into account probable repair costs over the whole life of the assets the value of the asset is affected by both the amount and distribution of expected repair costs, and that, therefore, any accurate calculation of depreciation requires prediction of repair costs as well as prediction of the life of the asset and its scrap value. In order to make an investment in an asset profitable, depreciation must afford returns large enough to cover the replacement of the investment, a competitive net return upon the investment in the asset and repair costs necessary to maintain the efficiency of the asset. If it is known in advance that in some years an asset will not afford its usual income, allowance will be made for that fact in the determination of its present value. Since the value of the asset always is dependent upon expected incomes from it, the calculation of depreciation can likewise be based upon future expectations.

SOME OBSERVATIONS ON ACCOUNTING IN FRANCE AND GERMANY.

H. H. Baily
The Accounting Review 1929 4(1), 38-43
Abstract To get a proper perspective of the development of accounting in any country one must understand the institutions, the characteristics of the people, and the peculiarities of their business practice. In France and Germany as in other European countries they have many hundreds of years behind them. Their institutions are the result of growth through many generations. Society in the United States is not as static and there is more freedom of movement between people in different walks of life. The French business man does not have the proper attitude towards the accountant. The accountant is a necessary evil. The accounting department is regarded as an expense rather than as a part of the organization that aids in the development of efficiency and as an important factor in the success of any large business. Without doubt French law has had some influence on the development of accounting in France. The French accountants have not organized themselves into strong professional societies. Instead of a few strong organizations they have many loosely joined.