This article focuses on some of the problems facing the accounting society and suggests what the profession of accounting can do toward their future solutions. The problems are summarized as--To induce, rather than to force, business management and union labor to reach collective bargaining agreements, to save out of the flow of consumer purchasing power and corporate earnings, enough to equip with adequate tools and other capital assets, to achieve a more adequate understanding on the part of many more persons of the nature and workings of monetary system in its relationship to international and domestic commodity prices, wage rates, volume of business, volume of savings and levels of interest rates. To make progress towards something, that is a paradox and may turn out to be an impossibility. According to the author, accountants can and must play a leading role in disseminating the necessary information and knowledge and the extent to which Accountancy contributes to the necessary solution of these problems will determine the brilliance of its future.

Reviews the book "Accounting for Oil and Gas Producers," by C. Aubrey Smith and Horace R. Brock.

Reviews the book "Investing for a Successful Future," by Thomas E. Babson and David L. Babson .

Reviews the book "Common Stocks and Business Cycles," by Edgar Lawrence Smith.

Reviews the book "Practical Business Statistics," by Frederick E. Croxton and Dudley J. Cowden.

Accountants have an obligation to explore all possibilities for the most useful methods of accounting for depreciation. Accounting literature has been filled with treatises on the pros and cons of depreciation based on historical cost as opposed to depreciation adjusted by one of the many methods recommended. The present position of the U.S. Supreme Court on depreciation accounting and the historical development of its thinking provide needed background for much of the discussion that is being conducted on the important depreciation question. The Supreme Court has accepted original cost to the owner as an appropriate basis for the determination of income and for the calculation of depreciation charges. In accepting this generalization, however, diversity of opinions in dividend cases must be kept in mind. One must also recognize that the Court will not disturb the findings of the various Commissions. The Commissions are at present firmly committed to a cost basis but should they change, it appears not unlikely that the courts will approve other bases so long as they do not appear to be confiscatory.

Reviews the book "A Study in Liquidity," by William A. Paton.

During the past year, in 1958, the activities of the Association followed the customary pattern of completion of some projects carried over from earlier years and launching new projects and programs. An exact measurement of progress is neither possible nor necessary. Each year represents only a small segment of the continuing stream of influence on accounting education and research fostered by the Association. The periodical "The Accounting Review," continued to hold its high place in accounting literature and to grow in circulation and influence. The Association has continued its policy of cooperation and cordial relationships with other accounting organizations. Recognition of varying points of view was encouraged by the appointment of non-teaching members to various Association committees. A Committee on By-Laws was appointed during 1958 to consider the creation of the office of president-elect. The recommendations of the committee were approved by the Executive Committee and presented to the members at the annual business meeting for consideration. The establishment of a special fund for a doctoral fellowship program was announced at the annual convention in Syracuse.

The article presents views of professor Sidney I. Simon on accumulated depreciation that should not be deducted from the assets, but shown on the other side of the balance sheet as a reserve. He recalls that, in the days before it was generally realized that depreciation ought to be recorded consistently and systematically, there was a tendency to allow it only in years of good earnings. It was also customary at that time to post the credit directly to the asset account. It is therefore a great pity that the conferring of a title such as reserve or provision, or allowance should induce many to attribute to this collection of credits some sort of independent existence. Accumulated depreciation is not too different from a surplus reserve because failure to record depreciation costs would overstate profit and surplus, and tempt directors to dissipate assets in dividends. Failure to record any cost would overstate profit. Simon refers to the danger of misleading the layman if the asset appears in the balance sheet at the net figure, which he believes may be interpreted as the "true value" of the asset.

The indispensableness of a national position statement in addition to the national income accounting system for macroeconomic analysis can scarcely be overemphasized. But this hardly seems to be recognized by most economists who seem to have placed greater emphasis on income accounts than on stock accounts. Indeed, students of economics have failed to visualize the vantage of combining position and income statements in their analytical work. It is clear that to use but one of the two statements to analyze an economy is at best a partial study. Moreover, the macroaccounting mechanism will become an incomplete system without a balance sheet. In the application of accounting to economics it should be pointed out that the national balance sheet alone cannot furnish all the information needed for national position analysis. For a penetrating study a combination with other branches of macroaccounting seems desirable, such as regional and sector balance sheets, national income accounts, input-output tables, moneyflows, and balance of payments. In order to explore fully the functions of national position statement, a series of statements covering a period of several years will give a more meaningful study than the use of any single statement.