Journal Article A Comparison of Welfare Criteria Get access Robert E. Baldwin Robert E. Baldwin Cambridge, Mass. Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 21, Issue 2, 1953, Pages 154–161, https://doi.org/10.2307/2296007 Published: 01 January 1953

THE treatment of institutions remains one of the most unsatisfactory areas in national income accounting. Standing at the end of a long process of evolution in both concepts and methods, the recognized experts in the field are still compelled to admit that their procedures, best exemplified today by those of the United States Department of Commerce, remain open to much basic criticism.' This paper proposes to reformulate the current treatment of bank income, including a reopening of the discussion of financial intermediaries in their role as contributors to the national income and product. It is believed that the methodology suggested here is simpler, more in accord with reality, theoretically sounder, and of greater analytical value in deriving series of bank income and, ultimately, of productivity estimates. In the beginning of this study, the concepts proposed and those now in use by the Department of Commerce will be described.2 As a second step, the two opposing methods will be examined for their underlying rationale and philosophy. Third, technical procedures will be compared by means of simplified accounting models. Fourth, a number of refinements and qualifications both of principle and technique will be introduced, which are important in facilitating the passage from didactic framework to the final statistical series of income and product originating in banking. These series, if they are to be useful, must be capable of being integrated into the total national accounts. How this can be done will be demonstrated at various points along the way. I

Reviews the book "The Federal Taxing Process," by Roy Blough.

Reviews the book "Accounting for Inflation."

Reviews the book "Principles of Accounting --Advanced," by H.A. Finney and Herbert E. Miller.

This article presents information regarding the recent studies by members of the American Accounting Association's Committee on National Income. Members of the Committee have been engaged on independent projects of their own choosing and their findings have for the most part been reviewed by the Committee at its several meetings. This does not mean, however, that the ideas of each Committee member have been conformed to a common pattern. It has been the judgment of Committee members that the Committee's activities should continue for some time to come to assume the form of individual explorations within the field, and that the particular topics chosen for investigation and report should at this stage reflect both the individual's background and his immediate field of interest. Each member of the Committee expresses the hope that his paper will be regarded as work in progress and that his analysis and suggestions may aid future Committees in charting their programs.

The article discusses the Statement of Accounting Principles and Standards for Guidance of Executive Agencies in the Federal Government, recently released by the Controller General of the U.S. This statement is not intended to specifically cover many individual situations which arise from day-to-day and which can only be resolved by the application of judgment. Rather, it is designed to provide a framework sufficiently flexible that accounting can be fitted to the needs of each group to be served, stimulate the development of the highest standards of accounting and financial reporting and encourage the continued orderly improvement of all phases of financial management. As a prelude to the main discussion of accounting principles and standards, the related factors, which are important to their successful development and application, are reviewed. The article discusses the growing analysis of the utility of the statement and establishment of accounting standards. Moreover, since management depends on accounting for current factual information on financial operations for purposes of planning and control, top management should integrate and coordinate the results of accounting, budgeting, reporting, and internal auditing.