Knowledge that Transforms

Reviews the book "Problems in Accounting," by W.A. Hosmer.

Reviews the book "The Canadian Banking System," by James Holladay.

Abstract The Executive Committee of the American Accounting Association has presented a tentative statement of principles, which deals with these questionable points. Everything that appears in this list could be definitely disposed of by every accountant if those principles, or rules, or standards, or conventions, or whatever you want to call them, were universally observed. But, if the universal observance of those particular rules and conventions and standards is not most desirable, then it behaves the accounting profession and those who are teachers and research workers in this field to decide what rules should apply. If qualifications and exceptions are necessary in connection with them, then the problem is to state them. It is a difficult, complicated task, but it is not impossible. Only our diffidence, our preoccupation with other matters, a certain degree of inertia in tackling these things, prevents our getting this job done in some satisfactory fashion. in some satisfactory fashion.

Abstract In line with the suggestions of the Committee on Corporation Law of the Academy of German Law, the new act of January 30, 1937, relating to stocks has retained the anonymity which depends upon subsuming under one head many separate kinds of capital, and to make up for the resulting personification has significantly strengthened the position of the administrative officers, so that the leadership notion which stands for authority and responsibility takes the place of the nonsensical majority principle. The direction of the company lies exclusively in the hands of the Management, which controls it in an orderly and conscientious manner, bearing full responsibility for the welfare of the enterprise and its employees and contributing to the common good of both the people and the Reich. The stockholders who up to now possessed the last word even on questions of business policy, at present exercise this power only on authorization by the management. Whatever the opinions otherwise of stockholders on this matter, their importance is purely advisory and the management is not legally required to abide by them. The official text of the corporation law explicitly limits the scope of stockholders' power to questions involving the economic and legal structure of the company.

Reviews the book "Monetary Policies of the United States, 1932-1938," by James D. Paris.

Reviews the book "Selected Cases on Government and Business," by G.O. Dykstra and L.G. Dykstra.

Abstract It would seem appropriate that Some Tentative Propositions Underlying Consolidated Reports presented at the last annual meeting of the American Accounting Association, be expanded to include the more complete discussion of the reasoning followed in arriving at the conclusions it contains. The treatment in consolidation of earned surplus of subsidiaries arising prior to date of acquisition of control. The accrual of equities in undistributed earnings of subsidiaries in accounts of the parent. The determination of reserves for losses on investments in subsidiaries based on ultimate realization rather than on amounts of operating losses. The exclusion from consolidation of nonhomogeneous subsidiaries. It is submitted that these propositions are neither in accordance with generally accepted practice nor based on any logical assumptions. In effect they state that the parent's equity in earnings of a subsidiary during the period when an interest was owned less than controlling may constitute earned surplus to the parent only if received prior to acquisition of control but not if received after acquisition of control.

Abstract The 1937 committee on education of the American Accounting Association undertook the task of developing the details of a program providing 60 hours of technical training for the profession of accountancy. It was intended to correlate this program as nearly as possible with the report of the committee on education of the American Institute of Accountants (AIA). Recognizing the desirability of a flexible program which might be suitable for the various types and conditions of educational institutions, the report of the committee incorporates three separate and distinct programs which should be considered together as one general program with boundary limits established. These are designated as the recommended program, the minimum program and the maximum program. In this connection the terms minimum and maximum are used to indicate the amount of concentration in business and accounting subjects. The report of the committee thus covers a rather broad band of concentration varying from 33 hours to 87 hours out of a total of 120 hours usually required for graduation. The recommended program, in conformity with the report of the AIA committee on education, provides exactly 60 hours of business and accounting concentration.

Reviews the book "Business and Modern Society," edited by Malcolm P. McNair and Howard T. Lewis.

Reviews the book "Standard Practice in Auditing," by W.J. Back.