Orace Johnson, Some Implications of the United States Constitution for Accounting Institution Alternatives, Journal of Accounting Research, Vol. 19, Studies on Standardization of Accounting Practices: An Assessment of Alternative Institutional Arrangements (1981), pp. 89-119

The analysis of methods begins with the problem of definition. Many definitions are possible. Not all are equally useful. This article offers two general concepts that are defined according to their logical consequences. One of them enables us to view many common patterns (such as straightline or sum-of-digits) as particular results of the same general method. The two concepts to be compared are labeled conventional depreciation and time-adjusted depreciation. Each has its distinctive characteristic and a different effect on reported net income. Throughout this article, I shall assume economic rationality and perfect foresight with all expectations fully realized. For simplicity, taxes will be ignored.

Donations, Disclosures, Tax benefits

Abstract This article cites a study evaluating the concepts concerning possible accounting solutions to the classification problem of research and development costs. This study, reportedly, is a continuation of a previous study that focuses on contra-equity accounting for research and development. In that study, the causal relation between research and development effort and benefit was defined operationally to be the coefficient of cross correlation between the ratio of research and development expense to total assets and the ratio of income to net worth. This article deals with conceptual foundations, procedural alternatives, the contra-equity proposal, hypotheses and evidence, and institutional matters. The original study treated amortization as if it started in the year of cost incurrence for all assumed lines. Thus, all three amortization patterns for one-year lives had coefficients identical with the coefficient for current expensing. The present replication extended the analysis by adding a one-year-lag alternative, with all amortization starting the year after cost incurrence. The present study also added one new relationship to test the capital loss alternative.

Abstract Reports on the concept of a doctoral seminar that is developing out of a fundamental reappraisal of prevalent education methods. Details on the doctoral program in accounting at the Ohio State University in Columbus. Number of doctoral level accounting courses that are offered in the university; Framework for critical queries in accounting.

Abstract This article is concerned with the systematic arrangement of concepts, for which tentative definitions and provisional symbols are needed to communicate. Classification is the primary intellectual activity of man, older even than girlwatching. Quantification is secondary. The major task in setting up any kind of taxonomy is that of selecting appropriate symbols, giving them precise and usable definitions, and securing the consensus of the group which is to use them. Classes may be nominal only, but the taxons must be ordered, so that an alpha class includes two or more beta classes. The usual treatment of "class and subclass" is not sufficient because the ordered levels of generality are essential to a rigorous and complete classification. One notable exception to the general neglect and the conspicuous absence of innovative inquiry by accountants into the classification problem is the work in accounting theory by Eldon Hendriksen. His classification of "approaches to accounting theory" is a novel contribution to literature.

Abstract The article examines several problems in the events approach to accounting theory using distinction among terms. Terms used in any science theory may be grouped with reference to the "mode of verification." Verification of a value-inference term would require testing the consistency, necessity, and sufficiency of the inferential logic. The term "event" refers in a general way to an action, occurrence, or happening that could be described by one or more of an infinite number of properties, attributes, or characteristics. A primary need for any accounting theory is a taxonomy that satisfies the criteria of exclusiveness, exhaustiveness, efficiency, and effectiveness. A forecast may relate one kind of event to an expectation of that same kind of event. It can be temporal, as when the antecedent market values of a firm's common stock are used to forecast its subsequent market value. Like extrapolation, prediction may make formal use of statistical techniques. Any accounting observation or inference that is useless for forecasting, is useless for guiding action. If no accounting data were accurate in forecasting, then accounting would be useless for decision. If accuracy in forecasting cannot be established for accounting data, then the claim that accounting is useful for decision is an empty boast.