Knowledge that Transforms

Abstract The article presents a report to stock holders reflecting the findings of the Committee on Statistical Reporting and Uniform Accounting for Industry, for presentation to the Business Advisory and Planning Council for the Department of Commerce, with respect to the financial reporting of corporations to their stockholders. The Committee has surveyed the area of activities referred to it with a view to determining both the relative importance and the urgency of the several problems that are arising. The field covered by the words 'uniform accounting' is extensive. Many phases of accounting theory and practice are still in a controversial stage. The conclusion was inescapable that if the Committee hoped to accomplish any practical results it should limit the scope of its inquiry to one or two subjects which offered possibilities for tangible accomplishments within a reasonably short space of time. Business life by investment and the desirability of having it conducted upon the soundest basis possible, very soon brought to fore the question of the published reports by which listed companies furnish financial information to their stockholders and to the business public generally.

Reviews the book "The Federal Securities Act Manual," by George C. Thorpe and Challen B. Ellis.

Reviews the book "The Practical Application of Investment Management," by Dwight C. Rose.

Reviews the book "A Study of Corporation Securities, Their Nature and Uses in Finance," by Arthur Stone Dewing.

Reviews the book "Great Britain and the Gold Standard," by H.F. Fraser.

Abstract Independent research in business is demanded increasingly with the ever-changing conditions of production, marketing, finance, and consumption. Ability to examine, to organize, to draw logical conclusions from, and to report upon available data is needed. This requires the services of a trained research worker. Training for this work is best provided in college or university postgraduate years. It is assumed that the basis for graduate work in accounting shall be determined largely by accepted standards for graduate work generally. A restatement of such standards, with some comments, may therefore be justified. It is believed that thesis standards are more or less generally established under independent scholarship. It also include an appropriately limited subject, a definitely stated purpose or problem, adequate collection of data by various means, reasoning-organization, analysis and conclusions. Moreover, written expression of the work done, which is the basis of the conclusions too finds a mention in the standardization.

Reviews the book "The League of Nations: World Economic Survey 1932-33."

Abstract It is recognized that the total cost of higher education, whether in institutions publicly or privately supported, must finally be a charge upon the financial resources of the people. It is probable that institutional incomes will continue to be reduced for some time to come. It is important, therefore, to study expenditures with the view to assuring high standards for those desiring a college education at a cost which they can afford to pay. There are two great areas of economy open to institutions of higher education. The first is in the field of institutional coordination on a regional or state wide basis. The second great area of economy is in institutional internal administration. Somehow you must bring judgment to bear on the problem in order to provide the educational opportunities best suited to the greatest numbers and at the lowest possible cost. The educational services of colleges and universities may include instruction, research, and public service. Instruction is commonly provided in all institutions.

Abstract The author of the article assumes that revaluation of a cost-of-replacement basis is in general quite as defensible as revaluation on a value-of-money basis and has, at bottom much the same line of justification. From a balance-sheet standpoint, there is not much to be said for revaluation on a cost-of-replacement basis of plant assets particularly specialized depreciable assets, even in a period of rapidly changing prices. The author states that balance sheet figures cannot be expected to show realizable values in the case of plant assets and as expressions of cost incurred. It is hard to see any advantage in current estimated costs over actual dollar costs for balance-sheet purposes. In fact a footnote or a careful reference to the changing situation is as valuable as the adjusted figures themselves. On the other hand, there is hardly any serious objection to the introduction of careful estimates of replacement costs in the balance sheet provided it is done, as is almost never the case, in a proper manner, and this should mean, among other things, that the extent of the adjustment is clearly displayed.

Reviews the book "The Financial Policy of Corporations," 3rd ed., by Arthur Stone Dewing.