This study investigates the extent to which a retailer's willingness to share internal (sales and inventory) information with a manufacturer and the reliability of the information transmission between the retailer and the manufacturer affect the total supply-chain profits resulting from two alternative inventory management systems. I present analytical models of a traditional system and a Vendor Managed Inventory (VMI) system. The VMI system is a supply-chain management technique in which the retailer delegates its inventory decisions to, and shares its internal accounting information with, the manufacturer. With VMI, the parties aim to reduce inventory-related costs and increase supply-chain profits. The theoretical analysis indicates that the system that produces higher supply-chain profits depends on the extent to which the retailer reveals its internal accounting information to the manufacturer and the ability of the manufacturer to accurately receive and use this information in its decisions. Survey data corroborate the model's prediction that manufacturers are more likely to select VMI when retailers provide more precise sales and inventory (i.e., demand) information and when the manufacturers' systems ensure reliable transmission and receipt of this information. The study's results suggest that managerial accountants should consider the retailer's willingness to share sales and inventory information with the manufacturer and the manufacturer's ability to reliably transmit this information before implementing VMI systems.

This article discuss the U.S. Securities and Exchange Commission's (SEC) current activities and goals as they relate to the accounting profession. The Report of the Special Study of Securities Markets was sent to the U.S. Congress, its 175 conclusions and recommendations covered almost every aspect of the securities industry. Since then, the difficult task of implementing the Study recommendations has preempted much of the SEC's time and energy. With the aid of the industry, one have made significant progress. One of the most important achievements was the formulation of the legislation recently passed by the Congress and now known as the Securities Acts Amendments of 1964. Under the new law, many accountants will, for the first time, be faced with problems under the federal securities laws. One should consider it particularly appropriate, therefore, to refer to certain of the new provisions which will be of particular interest to members of accounting profession. The 1964 Amendments deal chiefly with issues of securities traded in the over-the- counter market and the standards of broker dealer firms and their salesman.

The author discusses the impact of new revenue code on accounting. He describes the effects of taxation and tax laws on accounting theory and practice. He discusses the probable effects of changes in taxing rules on accounting practice. He clarifies the possible effects of tax rules on non-tax accounting by way of illustration. He further mentions two new methods which may be used for tax purposes, which are, the double-rate declining balance method and the sum of the years-digits method. He mentions the effects of changes that occur when a taxpayer changes from accrual method of reporting installment sales to the installment method and changes in the selection of fiscal years for tax purposes. He discusses the change that could affect the willingness of taxpayers to change from an accounting method for accounting purposes. He briefly mentions the minor changes which effected in bringing tax accounting closer to financial accounting and code changes which affect accounting indirectly. He mentions the responsibilities of the accounting profession in face of the new internal revenue code.

The article focuses on accounting changes brought about by the Revenue Act of 1954. Though the general rule for accounting methods under the Internal Revenue Code of 1954, as set forth in section 446, is substantially the same as the general rule under the Internal Revenue Code of 1939, there are a number of specific types of accounting problems which are singled out for special treatment in the new Code. For the most part, these special provisions represent an effort on the part of the lawmakers to bring tax accounting into closer accord with generally accepted accounting principles. Under the various revenue acts prior to 1939 and under the Internal Revenue Code of 1939, there were many differences between the accounting for certain transactions for tax purposes and for commercial purposes. Some of the major differences could be explained on the grounds of public policy, as in the case of the peculiar treatment of capital gains and losses and in the allowance of percentage depletion, to name only two. Others could be said to result from the necessity of determining taxable net income rather than business net income, as in the case of the allowances for expenses of a purely personal nature and the credits for personal exemptions.

Kalman J. Cohen, Risk Aversion and Information Structure: An Experimental Study of Price Variability in the Securities Markets: Discussion, The Journal of Finance, Vol. 40, No. 3, Papers and Proceedings of the Forty-Third Annual Meeting American Finance Association, Dallas, Texas, December 28-30, 1984 (Jul., 1985), pp. 845-846