Journal Article A Note on an Index Number Problem Get access E. Rothbarth E. Rothbarth Cambridge Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 11, Issue 2, 1944, Pages 91–98, https://doi.org/10.2307/2295970 Published: 01 January 1944
Abstract A study of authorities in the U.S. and Great Britain leaves much to be desired as regards the exact procedure to be followed in incorporating the results of foreign branch transactions on the books of the home office. It is evident that several variants in procedure are possible. The simplest arrangement for recording branch and home office relationships is the use of one account current in each record The home office Branch Current account will show in domestic currency the amount of the home office investment in the branch and the Home Office Current account in the branch ledger will show the home office proprietorship or residual liability of the branch to the home office stated in foreign currency. The credit balance in the Home Office Current account represents net assets whose various debit balances may have arisen under various exchange conditions and been converted into terms of domestic currency at various rates. Substitution of the balance of the Branch Current account for the balance of the Home Office Current account would be easier and more effective than conversion of the balance of the latter account.
Abstract In the ten years from 1896 to 1905, seven states of the U.S., had issued 644 certificates, largely, of course, upon waiver of examination. In that period the examiners in those states had decided upon subjects and scope of their examinations, and in each state they had prepared, given and rated from one to twenty examinations. Quite likely their bases for ratings differed, but they were in complete agreement upon the scope of the tests. In those first ten years all examinations were in four subjects, Commercial Law, Commercial Law, Practical Accounting and Auditing. Later some states added a few related subjects. In 1907 Pennsylvania combined the last three subjects into one test entitled "General Accounting," and from 1916 to 1942 those states which used the service of the American Institute of Accountants combined the second and third subjects into Accounting Theory and Practice. At the present time in 1943, the fifty-two Boards of Examiners are composed of one hundred and ninety-seven members besides the nine members of the Board of Examiners of the American Institute of Accountants. In 1905 the nine boards then existing were composed of twenty-nine accountant members.
Abstract The article focuses on the meaning of public accountants. It has different meaning for different individuals. The author is of the opinion that since some of the work of a public accountant is affected with a public interest, a definition suitable for use in a statute may be needed. But the best of definitions necessarily have their limitations. They will indicate the name of a larger group of which the item defined is a part and they will indicate one or at most a few characteristics which help to differentiate this item from other items in the larger group. It may be interesting, and possibly useful, therefore, to explore the historical background of the term public accountant as reflected in the literature of accountancy in the U.S. The administration of first Certified Public Accountant law was placed with the Regents of the University of the State of New York. To make effective the provisions of the new law, the Regents created the Board of Examiners for Certified Public Accountants that was authorized by Section 2 of the Act.
Abstract The purpose of periodic financial statements of a corporation is to furnish information that is necessary for the formulation of dependable judgments. Even in normal times this is a substantial challenge to accountants, considering the complexity of the corporate system. During a period when the entire business economy is geared to the exigencies of total war, the task of preparing accounting statements adequate for the formulation of dependable judgments assumes immense proportions. The current popularity of provisions for war contingencies and postwar adjustments or some such titled reserve seems to invite a review of this practice. Its popularity is disclosed in a study by the Research Department of the American Institute of Accountants reported in the November, 1943, "Journal of Accountancy." And since such reserve provisions may accomplish or at least open the way for-profit-smoothing, perhaps a review of "accepted" practice in this area of accounting is justified. In this paper the concern will be with general accounting theory and practice and will not include the problem of tax policy in relation to postwar conversion expenditures.