Knowledge that Transforms

This article presents information on the 60th annual meeting of the American Accounting Association. The meeting was held during August 29-31 on the campus of the Ohio State University, Columbus, Ohio. It was one of the largest and most successful conventions of the Association. At the Plenary sessions on Tuesday and Wednesday, the following speakers discussed the topics indicated: H.G. Nelson, Ford Motor Company, William W. Werntz. The following subjects were discussed at the round tables held on Tuesday and Wednesday: "The Ford and Carnegie Reports," "Accounting Research," "Scope and Content of the Filth Year of Collegiate Education for Accounting," "Recent Developments in Income Tax Legislation and Education," "Integration of Managerial Accounting into Traditional Accounting Courses," "Television and Accounting Instruction," "Mathematics and Accounting Instruction," "Certified Public Accountant Regulations and Accounting Curricula," "Professional Development of Accounting Personnel in Government Service," "Scope and Content of First Course in Cost Accounting," Accounting Developments Abroad."

Reviews the book "The Television Business: Accounting Problems of a Growth Industry," by Warde B. Ogden.

Reviews the book "Probability, an Introduction," by Samuel Goldberg.

Reviews the book "Essentially Equivalent to a Dividend," by Paul D. Seghers, William J. Reinhart and Selwyn Nimaroff.

Reviews the book "Accounting for Stock Options," by Daniel L.Sweeney.

This article points out briefly the aspect of the theoretical relationship between total depreciation allowances and the fixed property accounts. It is assumed that the assets are carried on the books at historical cost and at the end of their life cycle are to be replaced by similar assets having a much higher cost figure because of a sustained period of rising prices. The decision when to replace the asset is one for management to make. Obsolescence may have taken place as a result of technological improvements, and the asset should be retired even before the eight year period, or even at the end of five years. The asset, on the other hand, may be performing its task well and need not be replaced for several years after it becomes fully depreciated on the books. In the former case the depreciation charge has been understated and in the latter over-stated. Depreciation, whatever method may be applied, is nothing more than an estimate. Today, however, it is recommended as a conservative policy to write off the asset as quickly as possible because technological advances are being made at such a rapid rate that obsolescence is regarded as a more important factor than the physical character of the property.

This article presents news note related to American Accounting Association. Leon E. Hay is on leave of absence until August 1961. He is attached to the Industry Division of the U.S. Operations Mission to Guatemala and is teaching cost accounting to business executives. Charles B. Handy has been promoted to assistant professor. Bruce T. Kruse has been granted a leave of absence to work on the doctorate at Louisiana State University. Ernest L. Enke has joined the staff as an instructor. Williard E. Stone assumed duties as head professor of accounting shortly before the beginning of the fall semester. L.J. Benninger held an appointment last summer as visiting professor of accounting at the University of Puerto Rico in Rio Piedras. William F. Crum has been appointed by the Governor of Kansas to a fourth three-year term on the Advisory Board to the Kansas State Public Accounting Board. Clarence L. Dunn was promoted to Professor in September. James M. Owen was one of two professors invited to attend as special academic participants, the nine-week Internal Revenue Agents' School conducted at the office of the District Director in New Orleans during July and August.

American Accounting Association and its predecessor organization, The American Association of University Instructors in Accounting, have had as a primary objective the encouragement and promotion of research in accounting. On December 28, 1935, the regular business meeting of the twentieth annual convention of the American Association of University Instructors in Accounting was adjourned and the assembled members immediately reconvened in a business meeting and the members were shifted from the old organization to the new. The only changes that had been effected were the change of name and the adoption of a new set of By-Laws. The chief activities of the new Association were listed in the By-Laws as "publications and research." The first of the stated objectives of the Association was phrased thus: "To encourage and sponsor research in accounting and to publish or aid in the publication of the results of research."The means by which the American Accounting Association expected to encourage intensive research on accounting subjects was never fully faced. The Executive Committee did suggest a substantial, but very general, list of topics on which it was felt study was needed. It is quite evident that the master's and doctoral programs in accounting were looked upon as a source of research talent and effort which was readily available in quantity.

Almost all universities with accounting major programs are engaged in a sweeping overhaul of their curricula. The subject matter of each course is being carefully studied to determine how well it fulfills the objectives of the course. The objectives themselves are under close scrutiny. With this attention to the course objectives and content it is perhaps a particularly appropriate time to have a look at new developments in methods of teaching accounting. Significant developments are taking place in both methods of teaching and supplemental aids available for the use of the student. Some of the more important areas warrant our consideration. Business games, at their best, are simulations of business conditions which require a sequence of decisions from the players. Results of these decisions are fed back to the players through periodic financial and other reports, and new decisions are then required. Only incomplete information is available and decisions must be based upon anticipation of the probable result of both their own team action and that of competing teams.

Reviews the book "The Capital Budgeting Decision," by Harold Bierman, Jr. and Seymour Smidt.