The article focuses on some changes made in the required accounting procedures for some nonmonetary transactions in APB Opinion No. 29, entitled "Accounting for Nonmonetary Transactions," which was released in May 1973. For example, the opinion requires that nonreciprocal nonmonetary transactions, such as property dividends, be based upon fair values. Opinion No. 29 also affects reciprocal nonmonetary exchanges significantly. However, some parts of the opinion dealing with nonmonetary exchanges are quite difficult to interpret and even the new editions of intermediate accounting texts, which claim to include all thirty-one opinions of the Accounting Principles Board fail to present an adequate explanation of the effect of this opinion on accounting for reciprocal exchanges of nonmonetary assets between entities. In addition, there seems to be a common misconception that Opinion No. 29 prescribes accounting procedures for nonmonetary exchanges identical to those required for income tax reporting. Therefore, the purpose of this article is to summarize and explain those parts of the opinion, which deal with reciprocal exchanges of nonmonetary assets.

Reviews the book "Experimental Economics," by Douglas D. Davis and Charles A. Holt.

[A number of new types of financial instruments have appeared in recent years, many of which have characteristics of both debt and equity. Accounting standards, however, have not specified the treatment of these hybrid securities for financial reporting purposes. As a result, companies have considerable latitude in how the instruments are reported, and some instruments have been designed in part for their financial reporting implications. One such instrument is the adjustable rate convertible note (ARCN). The treatment of ARCNs for both financial and tax reporting is discussed and an approach to accounting for ARCNs and other hybrid financial instruments is proposed which focuses on the substance of the instruments.]

A number of new types of financial instruments have appeared in recent years, many of which have characteristics of both debt and equity. Accounting standards, however, have not specified the treatment of these hybrid securities for financial reporting purposes. As a result, companies have considerable latitude in how the instruments are reported, and some instruments have been designed in part for their financial reporting implications. One such instrument is the adjustable rate convertible note (ARCN). The treatment of ARCNs for both financial and tax reporting is discussed and an approach to accounting for ARCNs and other hybrid financial instruments is proposed which focuses on the substance of the instruments.

Reviews the book "International Corporate Planning," by Michael Z. Brooke and Mark Van Beusekom.

Reviews the book "Modern Accounting: Accounting as the Information System for Technological Change," by Trevor Gambling.

Presents information on a study which described an account structure designed to remedy the flaws in conventional governmental accounting and reporting practices. Controversy over the conventional governmental accounting model; Integration of fund accounts through consolidation of financial statements; Financial statement revisions that will result from changes in the governmental account structure.

Reviews two books on Mathematical problems and models. "Basic Mathematics," by Clifford H. Springer, Robert E. Herlihy, and Robert L. Beggs; "Advanced Methods and Models."

This study testa whether there is a relationship between the lobbying activities of firms on a proposed accounting standard (FAS No. 191 and the trading activities of corporate insiders. We find that, on average, insiders of full cost firms that lobbied were net sellers and successful efforts lobbiers were net buyers, while non-lobbiers took opposite positions. The results are consistent with the hypothesis that lobbying activity is correlated with management's expected wealth. The results are also consistent with comment letters to the FASB having information value, since insider, trade on their personal account in the same direction their firms lobby. Alternatively, the results can be interpreted as support for the conclusion of Larcker, Reder and Simon [1983] that FAS No. 19 was perceived to have economic consequences.

[This study tests whether there is a relationship between the lobbying activities of firms on a proposed accounting standard (FAS No. 19) and the trading activities of corporate insiders. We find that, on average, insiders of full cost firms that lobbied were net sellers and successful efforts lobbiers were net buyers, while non-lobbiers took opposite positions. The results are consistent with the hypothesis that lobbying activity is correlated with management's expected wealth. The results are also consistent with comment letters to the FASB having information value, since insiders trade on their personal account in the same direction their firms lobby. Alternatively, the results can be interpreted as support for the conclusion of Larcker, Reder and Simon [1983] that FAS No. 19 was perceived to have economic consequences.]