Abstract The article informs that there are certain basic over-all concepts regarding the fundamental nature of business and other organizations from which one reasons to arrive at some accounting decisions, including aspects of classification, measurement and reporting. These concepts are variously termed theories, schools of thought, view- points, conventions, approaches, methods of viewing, and even doctrines. They are so different from one another that they lead to different conclusions or accounting decisions. This often results in controversy and sometimes confusion and misunderstanding. Two of the concepts are widely held-the proprietary and the entity concepts. Other concepts or theories have been proposed as being improvements upon or more realistic than the two mentioned. These include the fund theory, the enterprise theory and the residual equity theory. This paper is divided into two parts. Definitions and a somewhat general discussion of the concepts were found to be necessary and are taken up in Part I. The areas of conflict arising out of the existence of the differing concepts are disclosed in Part II. Readers who tend to be impatient with theoretical discussions may wish to turn to Part II first to see if the disclosures are of interest to them.

Abstract The article presents suggestions by the author for improvements in governmental accounting. The author suggests that the accounting staff should be alert to possible savings in costs and improvements in its accounting and reporting, it should even be ready to eliminate procedures if the resulting information is not worth the time and cost necessary to obtain it. Even the recommendations of authoritative accounting bodies should not be followed blindly, it is always appropriate and wise to seek to know why a procedure should be followed. It is possible that a procedure useful to many governments may not be advantageous to others. Accuracy is also significant. If information being presented to management and the public turns out to be inaccurate or misleading, the accountant is obligated to correct the presentation. Government accountants should constantly look at their work critically and realistically and be every ready to make changes where improved results or efficiency would follow.

Abstract An interesting concept regarding depreciation was presented by Professor Robert Dixon in his article, "Decreasing Charge Depreciation-a Search for Logic" which appeared in the October, 1960 issue of The Accounting Review. He argued that decreasing charge depreciation is appropriate and straight-line procedure correspondingly inappropriate even if the asset in question produces the same level of service in each period of its life. The argument presented may seem logical, but further thought raises some disturbing questions. It is true that in purchasing a bundle of services, the utilization of which will extend over some years, less should be paid for those which are postponed (i.e., their future value should be discounted to determine their present worth); and the longer the postponement, the less the unit price which should be paid. But does this really warrant following a declining curve depreciation policy? Are the services to be received in subsequent years any less valuable or useful at the time of utilization than those used in the first year? In other words, is there not an increase in the value of the services (reflected in the cost of carrying the investment in future services) as their time for use approaches which would offset the discount? This paper focuses on these questions.

Reviews the book "Governmental Accounting," by R.M. Mikesell and Leon E. Hay.

Abstract In Holland and West Germany, accounting as practiced is of good quality as confirmed by American and British Accountants. On the other hand in various countries of western continental Europe accounting has developed rather erratically. This article focuses on the accounting training procedures, which enabled Holland and West Germany to forge well ahead of their neighbors in quality of accounting practice? In comparing the training of accountants in Holland and West Germany with American and British systems, several important differences appeared. The considerable emphasis on Economics, Law and Statistics in the course work of those two countries was obvious. Another difference is supplementing the written examinations with oral examinations. A final major difference is that the training period in the two European countries is longer than the U.S. and England. By studying the accounting systems of these two countries the author questions the validity of hurrying the American trainees into certification.

Abstract The paper describes the training of accountants in Great Britain, first discussing the situation in England and Wales and later mentioning ways in which the Scottish training differs. The Institute of Chartered Accountants in England and Wales has virtual control over the admission of people into the public accounting field in those two countries. There is no separate licensing of public accountants by a government. Membership in the Institute is comparable to holding a state license to practice as a certified public accountant in this country. Members are allowed to described themselves as "chartered accountants" and to use the abbreviations F.C.A. for fellows and A.C.A. for associates. Businessmen are accustomed to seeking the services of Institute members for their professional accounting needs, and "by far the most important part of professional accounting work is carried out by chartered accountants." To become a chartered accountant one must become an articled clerk under Institute regulation and supervision for a prescribed period of years, pass examinations prepared, administered, and graded by the Institute, be accepted by the Institute council for membership.

Abstract The article discusses some changes introduced in the masters of business administration degree (MBA) course at the University of Washington at Seattle in Washington D.C. Some of these changes include that the MBA degree aspirant will be given a choice of a thesis or non-thesis program. The Master of Arts student, who is more likely to aim toward teaching and hence toward the doctorate will, still require writing a thesis. The non-thesis program requires the student to take three special research courses of three quarter-credits each. This total of nine credits corresponds to the nine allowed for an accepted thesis under the thesis program. The classes customarily will meet one day a week for two or more hours. The first count will be taken in the first or second quarter of enrollment as an MBA student. In it the student will be taught research methodology, including statistical, survey, analytical, market research, and operations research methods. During this quarter the student in the non-thesis program will select a topic on which he will write a major paper during the next two quarters. He will begin his research at this time. A student under the thesis program also may enroll in and receive credit for this course, but not the other two courses in the series.

Abstract Since joint product costing is itself a costly process, it seems important to be assured that the results are worth the cost. The uses, which can be made of joint cost calculations, are not usually clearly defined. The main use, and the only one commonly recognized, is the pricing of joint products in inventories. For management guidance, the separation of joint costs by the joint products is assumed to serve no useful purpose. The products originate from common materials and a common processing up to the split-off point and are inseparable up to that point. Managerial decision cannot be exercised as to whether or not to exclude one or more of the products in the processing; they must all be produced or none. Furthermore, the chance to vary their relative quantities in the short run is practically non-existent. Hence management gains as much control information from their total combined cost figures up to the split-off point as it would from those same joint costs divided among the products.

Abstract Reviews the book "Practical Accounting," by Edwin L. Theiss and Jay L. Hunter.

Abstract This article focuses on inventory valuation in profit and loss accounting. Some limitations of the proposed change in inventory treatment should be made clear. It is apparent that the process of charging opening inventory to cost of sales at market price and pulling out closing inventory at cost eliminates only those fluctuations in value which properly apply to previous periods. Changes in the market value of goods occurring between either the opening inventory date or the date of purchase and the date of sale are not isolated. They are allowed to affect operating results, since they could not be separated satisfactorily from normal operations for the period. The purpose is to isolate the results of operations for this period. In times like the present, when prices are shifting rather rapidly, the proposed change in inventory accounting would offer its greatest service. The balance sheet would be made to give a truer picture of the current position, and the current ratio would be more significant. Furthermore, the operations for each accounting period would be set forth more nearly divorced from those of other periods. The operating statement would thus become a truer index of current operating efficiency.