Knowledge that Transforms

The statements of the Homestake Mining Co., a gold-mining company, and of its wholly owned subsidiaries, the Golden Gate Mine and Timber Company and the Wyodak Coal and Manufacturing Company, provide an interesting example of the treatment of depletion and of the difference between percentage depletion allowed by the Federal income tax law and unit depletion based upon the cost or March 1, 1913 values of the property. The Bureau of Internal Revenue for income tax purposes at $13,250,416.16 established the March 1, 1913 value of the ore body of the Homestake Mining Co. For a number of years depletion based on a percentage of gross income as permitted by the Federal income tax law was credited partly to depletion reserve on cost or market values as of March 1, 1913 "on a per-unit basis, and the remainder to "Depletion reserve, percentage basis in excess of cost or March 1, 1913 value." A change in the treatment of investments in subsidiaries by the parent company, required by the United States Securities and Exchange Commission, is also of significance.

The study of cost accounting has come to occupy a significant place in schools or departments of commerce. Many instructors feel that it should be part of the preparation of students who have no particular fields of business specialization. No longer is it looked upon as a subject for accounting majors only; the contents of the course should, therefore, be adapted to the needs of both the accounting major and the general business student. It would be interesting to know if graduates, who had studied cost accounting, and later became associated with various fields of business, would agree with the opinions of cost instructors on course content. It is possible that their views might differ, at least in some instances, from those of their teachers.

Reviews the book "State-Chartered Savings, Building and Loan Associations in Illinois 1920 to 1936," by Arthur H. Winakor.

Reviews the book "Manual on Commercial Law," by A. Lincoln Lavine.

The article focuses on accounting reports for management investment companies in the U.S. In the past 15 years American investment trusts and investment companies have developed from a little-known type of financial institution to the stature of an established industry. In this relatively short period the new industry has been faced with the varied problems of developing investment, trading and dividend policies, reporting techniques and accounting principles and procedures. It is not surprising that the same rate of progress was not maintained in all fields but it is unfortunate that one of the early lags appeared in the field of reporting techniques. In their early years, American investment companies were influenced to some extent by experiences of British investment trusts. In addition, American companies were faced early in the development of the industry with the accounting and reporting problems arising from a very rapid increase in size, rapidly increasing stock prices and subsequent drastic breaks in stock prices. The rapid increase in the importance of American investment companies can be indicated by tracing the number of companies in existence and assets of these companies.

Reviews the book "Government and Economic Life," by Leverett S. Lyon, Myron W. Watkins and Victor Abramson.

Reviews the book "A Report of Progress."

The general use of a C.P.A. certificate as a means of measurement or recognition of an accountant's ability has become so widespread, and the certificate so coveted on the part of most accountants that it would seem as if all who are interested in the profession should be aware of the requirements for the certificate in the various states. In fact, knowledge of the accounting law and of the regulations imposed by the administrative board in each state is probably the first requirement of any potential applicant. The most uniform provisions in all states relate to the candidate's citizenship, his moral character, the examination and the granting of reciprocal certificates. All states require an applicant to be citizen of the United States or to have declared his intention of becoming naturalized. All states require a candidate to be of good moral character. The applicant is usually required to furnish three or more affidavits or references to indicate this quality. The most variable requirement of all is that of professional experience. This article is of help in visualizing the most common requirements.

Reviews the book "The Illinois Segment of the Nation's Economy for 1935."

Reviews the book "Security Analysis," by Benjamin Graham and David L. Dodd.