This article focuses on an article which was published in the April 1974 issue of the journal "The Accounting Review," which discussed three methods of allocation in reporting controlling and minority earnings on the consolidated income statement by simultaneous equations. The article demonstrated that the traditional treasury stock method in reciprocal stockholding situations understates the minority interest and is not consistent with a true treasury stock approach, and suggested the inclusion of additional earnings per share figures in revealing the current per-share equity claim of two equity interests on current earnings. The purpose of this article is to demonstrate that the two alternative models of allocating total consolidated net income to controlling and minority interests, proposed in the article published earlier, were improperly constructed and were not valid, and to illustrate the inefficiency in communicating the effective earnings per share of minority interests of subsidiaries through consolidated financial statements of the parent company.

This article investigates the nature of the stewardship concept, its historical development and implications in financial reporting. This concept of management's stewardship seems to encompass two of the four objectives of accounting suggested by a committee of the American Accounting Association: effectively directing and controlling an organization's human and material resources, and maintaining and reporting on the custodianship or stewardship of resources. Although it is generally recognized as a principal purpose of financial reporting, little research has been conducted as to its specification, and the concept remains without a settled definition. Stewardship is an old concept with a strong religious, particularly Christian, implication. According to Christian theologians, things or resources were created by God, who gave them to all men in common. The essence of things falls under the power of God, and man has only the right to use these things. In order to use them, a possession of the things may become necessary. This gives rise to the concept of property and human ownership.

In this paper, the portfolio and the liquidity planning problems are unified and analyzed in one model. Stochastic cash demands have a significant impact on both the composition of an individual's optimal portfolio and the pricing of capital assets in market equilibrium. The derived capital asset pricing model with cash demands and liquidation costs shows that both the market price of risk and the systematic risk of an asset are affected by the aggregate cash demands and liquidity risk. The modified model does not require that all investors hold an identical risky portfolio as implied by the Sharpe-Lintner-Mossin model. Furthermore, it provides a possible explanation for the noted discrepancies between the empirical evidence and the prediction of the traditional capital asset pricing model.