The lack of exceptions, qualifications, or explanations concerning consistency is somewhat disturbing to the critical reader in a period of rapidly changing economic conditions from phase of the business cycle to another. From one tax law to another with changes in products, distribution methods, and administrative organization, with changes from a controlled economy to one of relative freedom, with labor unrest, inflation, and unsettled international economic conditions, it would seem that an audit would quite often result in some material differences of opinion on accounting principles which failed of reconciliation. The principles of accounting so consistently applied by corporate management that the residual unresolved differences of opinion are almost invariably minor in character and not deserving of mention in the accountant's opinion report of the public accountant which can almost invariably declare that generally accepted accounting principles are applied on a basis consistent with that of the preceding year.

Even the most convincing advocates of the cost basis of valuation and income determination in accounting are impelled to approve an exception in the case of donated fixed assets. Most of the writers agree that donated fixed assets should be recorded at appraisal figures by an entry debiting fixed assets. There are those who see no objection to crediting paid-in surplus or capital surplus, depending upon the sources of the donation and tim suggested breakdown of the surplus accounts. Most sources concede that the admission of donated fixed assets to the accounts at appraisal figures is inconsistent with the cost basis of accounting. But, instead of recommending that the donated assets be recorded at the nominal figure of one dollar, the booking of the asset at appraisal figures is not only recommended but preferred. Those who profess the cost basis of accounting not only advocate the booking of donated fixed assets at appraisal figures, but frequently acquiesce in the charging of depreciation on donated fixed assets to revenue. The recording of donated fixed assets at appraisal figures is not consistent with the cost basis of accounting.