Knowledge that Transforms

Reviews the book "Accounting: Administrative/Financial," by George R. Husband.

Reviews the book "The Financial Executive, the Common Market, and Taxes," by John McCullough.

Fundamental income tax concepts should be taught in the elementary accounting course. The important reasons for this contention are: (1) Students are interested in the subject of income tax, and they have a need for tax knowledge. (2) Some accounting topics are taught better through the comparison of income tax and conventional accounting treatment. (3) A benefit may accrue to the teaching of the income tax accounting courses since accounting students will bring a better grounding in tax fundamentals to the course. Greater depth of treatment may be possible than is presently the case in courses in income tax accounting. (4) Students majoring in business education will be better prepared for their teaching duties.

Reviews the book "Readings in Auditing," by James T. Johnson and J. Herman Brasseaux.

The first treatise on double-entry bookkeeping published in Dutch appeared in 1543. With the early foundation of bookkeeping in the Netherlands, it is surprising that the profession developed so slowly and so late. It was not until 1880 that the first public accountant's office was established there, but by 1905 there were four societies of accountants in existence. The oldest professional body is Het Nederlandsch Instituut dan Accountants, founded in 1895, with a membership originally divided into first and second class. The four professional bodies were amalgamated in 1934 under the title, Het Nederlandsch Instituut van Accountants, its headquarters is at Herengracht 491, Amsterdam. The Netherlands Institute was established on English lines, its founders having been especially influenced by The Institute of Chartered Accountants in England and Wales. In the early years, the accountant was regarded merely as an expert and confidential adviser to his client. In the course of time, attention was directed to the accountant's third-party relations.

Reviews the book "Industrial Accounting," ed. 2, by Samuel Waldo Specthrie.

Reviews the book "Shortened CPA Law Review," by George C. Thompson and Gerald P. Brady.

Depreciation methods which, for a single asset or for a group, record relatively high charges during earlier periods of life. The adoption of such methods has, of course, been stimulated by their acceptance for income-tax purposes. Even though no over-all saving in tax may be expected, the fact that payment of tax money may be significantly deferred is sufficient basis in many cases for adoption of one of the declining charges methods for tax purposes. One has already been treated to an abundance of literature on the special problem raised where depreciation is taken more rapidly for tax purposes than for general accounting purposes. Thus far it has been argued that where a depreciable asset is subject to a deterioration factor it is more appropriate to use a form of declining-charges depreciation than it is to use the traditional straight-line procedure. It will next be argued that straight-line procedure is inappropriate even if the asset in question has a deterioration factor of zero, that is, even where the asset continues to produce the same level of service, physical or economic, in each period throughout its entire life.

The article focuses on the accounting education in the U.S. According to the author, any discussion of the present or future of accounting education must recognize the position to which the accountant has advanced today, and, more importantly, where he might be expected to be tomorrow. The accountant has surpassed those in all other professional groups in becoming the foremost advisor to business. An accountant is now called upon to counsel on matters and to serve in capacities not generally considered within his normal competence until recent years. The adequately educated accountant of the future must have greater breadth and greater depth of understanding of the many facets of business. Many accounting students seem to have a tendency to hold fixed ideas about how certain things must be done, with seemingly little appreciation of the fact that under appropriate circumstances alternative and equally effective ways may exist to accomplish the same end. They have been too well learned in the sense of being committed to memory without an understanding of their real nature and purpose.

Reviews the book "Law Review," 2nd ed., by Joseph L. Frascona.