This article describes legal and economic concepts of the balance sheet in Germany. he balance sheet is essentially a scheme for classifying property and capital, and is not vitally concerned that different amounts of property came in to the business at different dates. Therefore those who hold to these views are faced with no problems of valuation. Knowledge of current values for assets and capital is not absolutely essential to management. Although for certain purposes current values may be needed, it is more important to have a proper classification of the items of property and capital and to preserve the comparability of successive statements. A dynamic balance sheet must be supreme for the use of the manager because his decisions are dictated by his struggle for profit. The clear and concise ideas of writers who take the management point of view of accounting point out the proper course to follow. Legal requirements are obviouslyto be satisfactorily met, but the manager'svaluation problems can be best solved bythe application of economic principals.

Modern business methods and requirements resulting from the complex and diversified properties comprising the fixed assets of large corporations, have developed appraisal organizations to serve in broader geographical areas, for larger units and groups of properties, with greater responsibility, authority and public recognition, and to supplement the service of the individual specialist with the broader experience, coordinated effort, and uniform principles, possible from large coöperative organizations. The investment in the properties may be measured on the basis of the original investment representing the actual expenditures made at the time properties were acquired, constructed or equipped, an average investment representing what the property would have cost at prices at the given time or over an average period of years that may be estimated for the purpose of computation and the normal investment represented by the cost of reproduction as of a specified date. In order to have a basis for uniform measurements, there must be a fixed standard. This fixed standard is the cost of reproduction new. The cost of reproduction new represents a determinable fact that can be applied consistently and effectively to all properties.

Despite the fact that business enterprises are experiencing a period of falling prices and costs, the question of whether or not surplus arising from unrealized appreciation of assets is available for dividends is still important. It is of the utmost importance that law and accounting be in agreement in regard to the treatment of a problem of this sort so that the business man can be advised not only as to the logical procedure to be followed, but as to its legality as well. The profit-and-loss-statement group consists of eighteen states whose statutes state that dividends cannot be paid except from surplus profits of the business. Here also courts have had much difficulty in interpreting the statutes, for, in certain cases in this group, it has been made to appear that unrealized appreciation is available for dividends, because appreciation has been included in profits. This occurs when profits are conceived to be the net increase in wealth during a period, that is when assets are valued at present worth and not at cost. Six states give directors of a corporation the option of paying dividends from whatever source they choose, namely, profits or the excess of assets over liabilities and capital stock.

The article provides information about personnel changes in various universities and colleges of the U.S., in the profession of accounting. Robley D. Passalacqua, teaching fellow, has left the department to take a position in Sacramento Junior College. E. I. Fjeld of the University of Colorado has resigned as professor of accounting to accept a position as lecturer in accounting in the School of Business and Civic Administration of the College of the City of New York. Geoffrey Carmichael of Indiana University was elected president of the Indiana State Conference of Teachers of Business Subjects for the year 1932-33. R. M. Mikesell is taking an active part in the organization of farm bureaus and other associated organizations dealing primarily with cooperative activities. Wendell E. Beals, a graduate assistant at Northwestern University last year, is teaching accounting and economics in Kansas State Agricultural College. A new curriculum in commerce with special training in accounting has been established. No new courses are being offered but better arrangements of courses have been provided.

For problems involving the admission of a new partner to a firm, when the books of the old firm are to be continued, two methods are suggested by different textbooks. Often the two accounting exchange methods are offered as alternatives. These two methods have been illustrated in the article. It can readily be seen that each of these solutions give effect to the conditions of the problem. The discussion makes it evident that the two solutions offered to the problem are not, in a true sense, alternatives. The selection of one of the two methods cannot safely be left to the whim of the accountant who drafts the entries. The principals, who do not at the time en- joy a community of interest, should be consulted and due consideration should be given to their respective equities. As a general rule it seems that there is more reason for setting up goodwill when the new partner is admitted rather than to credit the old partners with a bonus of a part of the new partner's investment. It is true that goodwill which had not been purchased by the firm would be set up on the firm's books.

This article reports several events happenings, and proceedings in different universities of United States as published in the December 1932 issue of the journal "The Accounting Review." It reports that Willard J. Graham and Wilber G. Katz, assistant professors at the University of Chicago, Chicago, have published their book "Accountancy in Law Practice." The book was published by Callaghan and Company. Professor H.M. Heckmann of the University of Georgia, Georgia, had been appointed to the state board of examiners for the Certified Public Accountants (CPA) certificate. Concerning another report, it is described that professor R.D. Haun of the University of Kentucky, Kentucky, had been elected vice-president of the Kentucky Society of Certified Public Accountants. E.K. Bodgley, assistant professor at the University of Montana, Montana, had been appointed graduate manager and has given up his classses in accounting.

Reviews the book "Grundlagen der Selbstkostenrechnung und Preispolitik," by Engen Schmalenbach.

Reviews the book "Leaders and Periods in American Finance," by Theodore J. Grayson.

The article presents a list of books regarding accounting, published in the September 1932 issue of the journal "The Accounting Review." Some of the books are: "Book-Keeping," by Daniel Adams, "Key to Book-Keeping," by Israel Alger, "The Young Accountant's Guide," by Frederick Beck, "The National Accountant," by Jacob Batchelder, "A Synthetic and Inductive System of Book-Keeping by Double Entry," by F.G. Clarke, "Modern Book-Keeping by double entry," by Charles Gerisher, "A new and Improved System of Practical Book-Keeping," by John Gibson, "A System of Banking Book-Keeping," by J.W. Gilbert, "An Epitome of Book-Keeping by Double Entry," by Edmund Gale, "The Gentleman's Complete Book-Keeping," by Richard Hayes, "New Introduction to Trade and Business," by Peter Hudson, "The Schoolmaster's Guide," by Charles Hutton, "A Practical Treatise on Naval Book-Keeping," by Edward Lawes, "Book-Keeping in the True Italian Form of Debtor and Creditor by Way of Double Entry," by William Jackson and "A New Check Journal Upon the Principle of Double Entry," by George Jackson, etc.

The article presents information about capital and revenue profits and losses. A profit is an increase in value. It may result through the sale of an asset, in which case the asset is replaced by cash, or an obligation to pay cash, of a greater value. A profit may also arise through an increase in the value of an asset itself, when viewed from a certain standpoint. The asset is not sold, but is simply regarded as being more valuable. In this case it is an unrealized profit, not being represented by cash in any way. There is one asset which obviously must be excepted from this rule, and that is cash itself. If a concern has cash abroad, a change in a rate of exchange can make a very real and immediate profit or loss. Profits and Losses are divided into those of Revenue, and those of Capital. Revenue profits and losses arise out of regular operations of the concern, which will be buying, manufacturing, and selling its products, or simply buying and selling merchandise of some kind. Capital profits and losses arise out of a transaction in a capital asset or liability, and accordingly one outside of the regular operations of the company.