Reviews the book "European Contributions to Accounting Research: The Achievements of the Last Decade," edited by Anthony G. Hopwood and Hein Schreuder.
Previous research has questioned the use of COMPUSTAT capital expenditures data to layer fixed assets for the purpose of estimating constant dollar depreciation. This note compares the layering technique with the more popular alternative, the average age method. Estimated amounts were compared with actual data reported under FASB #33. The results indicate that the layering method provides estimates that exhibit less error, bias, and variance.
This paper uses discriminant analysis as a foundation for an admissions policy for accounting majors. The discriminant model is capable of correctly classifying students into Accept/Reject groups with a statistical accuracy of 78 percent using only three characteristics--grade-point average at 45 semester hours, grade in college mathematics, and grade in English composition. The model, more importantly, correctly classifies 90 percent of those students who, according to the model's criterion, should be rejected. Alternatively, the model is capable of identifying the same percent of those students who perform exceedingly well in accounting. This technique, together with a review and appeal procedure, provides a method of restricting enrollment while still meeting today's demand for quality accounting students.
Reviews the book "EEC Accounting and Harmonisation: Implementation and Impact of the Fourth Directive," edited by Sidney J. Gray and Adolf G. Coenenberg.