Knowledge that Transforms

Abstract The extensive plans of the American Institute of Accountants for organized research are a highly promising feature of near-future developments in accountancy. And suggestions made at meetings of the American Accounting Association regarding a statement of cost accounting principles and an analysis of the curriculum problems involved in accounting education point in the same direction. Another suggestion has recently appeared which could be made a basis for enlarging the extent of accounting research activities and coordinating the projects in that field. It comes from Gay Carroll, controller of the Humble Oil and Refining Co., and was made in the course of an address on December 19, 1944, before the Houston Control of the Comptroller's Institute. Accounting principles and technical standards are of such broad significance that their usefulness extends beyond any single organization. Therefore their formulation in words, or when necessary, their later restatement, should be of interest to all organizations in contact with accounting.

Abstract Prescribed accounting systems for utility companies followed as a logical and perhaps inevitable result of the large-scale consolidation and merging of these enterprises in the 1920's and the manipulation of property accounts that was frequently involved. After the stock market crash in 1929 there was a clearly defined movement to re-examine accepted accounting procedures, in order to prevent the possible recurrence of such a disaster. Public utility accounting was subjected to governmental scrutiny early in this period, and in the accounting systems prescribed there were stringent requirements as to the determination and recording of property costs, with particular emphasis placed upon disclosing original construction cost. It may be added that the present cost provisions of the system would accomplish the same results as the proposed changes if there were no fluctuation in prices in the economic system. Building on the hypothesis that prices are permanently maintained on a stable level, it is obvious that the capital outlay necessary to construct a given plant at any time will remain at the same amount.

Abstract Reviews the book "Production, Jobs and Taxes: Postwar Revision of the Federal Tax System to Help Achieve Higher Productivity and More Jobs," by Harold M. Groves.

Abstract Reviews the book "Introduction to Income Taxation," by James M. Henderson.

Abstract Reviews the book "Industrial Accounting— Transition Problems."

Abstract A war period, without doubt, is a poor time for observing and raising questions concerning expenditure controls in the Federal government. I have made no attempt to indicate the controls surrounding the procurement of the materials of war or even of peacetime supplies and equipment, which are subjects by themselves, and time has not permitted bringing out details of expenditure procedures. Nevertheless, sufficient general ground may have been covered to warrant a number of conclusions in which accountants should be interested.