Knowledge that Transforms

Reviews the book "Handbook of Accounting Methods," by J.K. Lasser.

Reviews the book "Audit Practice Case," by Ernest Coulter Davies and John H. Myers.

The article focuses on the statistical relationship of accounting and economics. Pressures, from both within the accounting profession and without, are constantly being brought to bear on the accountant in an attempt to induce him to change the basis of accounting reports. These ever-increasing pressures often make technical judgment formations by the professional accountant difficult. Many of these forces can be attributed, either directly or indirectly, to ideas of economists. It is the author's belief that accounting and economics are more statistically related and thus more interdependent than is commonly thought. It is also his belief that if the accountant and the economist were both more aware of this relationship, some of these pressures might subside and as a result both professions might derive mutual benefits therefrom. If one considers accounting and economic statistics as merely types of the quantitative method of analysis, the similarities of accounting and statistical methodology must be sought in the characteristics of the quantitative method itself.

The article focuses on the centenary of the Scottish Institute of Chartered Accountants. The one hundredth birthday of the oldest accounting body in the world, The Institute of Chartered Accountants of Scotland was celebrated by two thousand people, including representatives of fifty-four professional societies, in Edinburgh in June 1955. In the welcome address by the president of the institute, the president stressed that the facts that a grant of a charter to a body was no warrant of monopoly and that the future of a great profession was not created by letters after a name, but by industry, integrity and service. That Institute members could say without fear of contradiction that their founders had created an honorable profession and a designation, 'chartered accountant,' known and respected all over the world. The Scottish Institute had a great tradition of service to the community, not only in Scotland but in every part of the world and it is with a full consciousness of our responsibilities that chartered accountants dedicate themselves to those higher aims.

The article focuses on accounting research. In the October, 1954 issue of the journal "The Accounting Review," the first collection of 'framed' research problems in accounting was published. The real objective of this project, as stated in this initial listing, was to expose real research needs in accounting to the large research potential represented by the great number of college and university teachers and graduate students of accounting. In an attempt to insure the worthwhileness and practicality of the projected problems, it was hoped that most of them could be gleaned from industry and public practice. All of the following research problems were contributed by those engaged in research in national accounting organizations, by public accountants, or by regulatory commissions. There is little question that these problems represent 'felt needs' and are therefore profitable areas in which to expend research effort. If the value of research in accounting is to be realized by the profession, the results is that research must receive publicity.

Reviews three books. "Canadian Master Tax Guide," 10th ed.; "Canadian Income Tax Act," 21st ed.; "Canadian Income Tax Regulations."

Reviews the book "Approaches to Economic Development," by Norman S. Buchanan and Howard S. Ellis.

The 1954 annual meeting of the American Accounting Association was the largest and one of the most successful in its history. It was held on September 1 and 2 in Urbana, Illinois, with the College of Commerce and Business Administration, University of Illinois, as host. At the business meeting and luncheon on Wednesday, Dean Paul M. Green made a welcoming address, and brief reports were given by the Editor regarding the "Accounting Review," by the Secretary-Treasurer regarding nuances and membership statistics, and by the Director of Research concerning the Association's activities in this regard. President discussed the Association's Price Level Research Study and told of publication plans. After the banquet on Wednesday evening, President Smith introduced the members of the Committee on Convention Arrangements, the Ladies' Program Committee, and the persons seated at the speakers' table. President Lloyd Morey of the University of Illinois gave a very interesting talk, in which he traced the growth and development of the American Accounting Association.

Jinminpi (the "People's Money") is the currency now circulated in communistic China. It is usually abbreviated as JMP$. Only the People's Bank of China issues the notes. They are inconvertible paper money, and neither gold nor foreign exchange has been provided as reserves. Chinese communists generally follow Soviet communists. There is no exception in accounting. The cash control system in Communistic China is practically an extension of that in the Soviet Union. Simply speaking, there are three parts in the Soviet Ruble Control System: cash control; credit control; and transfer control. The democratic cash control differs from the Soviet cash control, not only in the operation but also in the object. The chief purpose of the democratic cash control is to insulate the abnormal fluctuation of cash circulated in foreign countries in order to stabilize the external value of the currency in foreign exchange market. By the cash control system; the central bank effectively controls the receipts and disbursements of all organizations. Since the cash in hand and cash settlements are limited, the volume and speed of money in circulation can be reduced and controlled by the central bank. Prices can, therefore, be stabilized.

In the November, 1945, issue of the "Journal of Accountancy," Emanuel Sax described "An Improved Form of Summary Statement for Fiduciaries." In that article Dr. Saxe pointed out many deficiencies in the charge and discharge form of executors' account in use in the Surrogate's Court of the County of New York. Although the charge and discharge statement has been presented to three generations of accounting students by almost every text published in the United States in the last six decades as the "customary" form or the "most suitable" form of executors' report, Dr. Saxe is one of the few writers who has devoted any critical attention to it or to other forms of executors' reports. Every state has certain statutory provisions pertaining to reports of executors and administrators. Additionally, statutes are usually implemented by rules and orders of the courts of jurisdiction. No matter how peculiar some of these legal restrictions may seem to an accountant and no matter how superior he may feel another form of report to be, he must prepare executor's reports in the form required by the statutes and court of jurisdiction.