This article presents remarks before annual meeting of American Accounting Association, presented on September 1, 1954. The term "academic" in the college and university world, means teaching and research. Both are essential in a well-rounded educational program, and the two usually go hand in hand. This Association has taken a leading place in both areas. Its original purpose was the improvement of instruction by bringing together those concerned for discussion of topics relating thereto. Whatever may be the economic success and public recognition of a profession, whatever may be the growth of its membership, however rigid may be its regulations for admission and practice, its true service and its accomplishment will depend on the quality of preparation of its members. This is where our collegiate departments of accountancy and related business subjects must recognize the depth of their responsibility. So the demands as well as the opportunities for an organization of this kind and its individual members continue without limit
The article focuses on management contracts, expense sharing agreements and tax planning. In recent years, many studies have discussed tax planning and tax effects. Comprehensive comparisons have been published listing tax factors that influence the choice of type of organization corporation, partnership, or sole proprietorship. One tax review lists as tax factors in the choice the tax burden, tax concern, capital gains and losses, exempt interest, social security taxes and community property. It gives a detailed analysis on tax problems of personal holding companies, improper accumulations and other transactions. One phase of the subject which has not been discussed frequently and which is the subject of this study is the contract entered into to regulate management compensation or to allocate administrative expenses between one or more operating businesses or companies. These contracts are generally known as expense sharing agreements. They may be entered into between parent corporations and its subsidiaries, or they may be used in a situation where the managing corporation has a controlling interest in the managed corporation
This article focuses on the policies and procedures of American Accounting Association Committees. To a considerable extent, these regulations represent the rules under which the present and previous Executive Committees have operated. They are not intended to bind future Executive Committees, since each succeeding Executive Committee has the right to determine the rules under which it, the officers, and Association committees will operate, within the by-laws. The President may be given the authority to create new education task committees with the advice of the Joint Committee on Education. It is recommended that the chairmen of the underlying task committees be ex-officio members of the Joint Committee on Education. With the exception of the Director of Research, a person should be limited to membership on one committee, in addition to membership on the Joint Committee on Education, the Membership Committee, the Nominations Committee, and the Executive Committee. Only members of the American Accounting Association should be appointed, committees may have non-member consultants, however, if the Executive Committee approves the idea and the consultant