Inventory Valuation, Net Realizable value, Replacement cost

This article discusses the differences in international accounting concepts and practices. International accounting is the producing, exchanging, using, and interpreting of accounting data across national borders. In an ideal state, international and domestic accounting would be indistinguishable, because under such a condition an international viewpoint would be applied to all accounting considerations. Until a transnational basis is achieved for accounting, international accounting will exist as an area of specialization in accounting in order to focus attention on problems of an international nature and in order to interject the broadest possible perspective into the development and application of accounting thought. It is not difficult to single out a number of specific factors as to why international accounting is important. In addition to the broadening effect of international studies, there are four direct reasons for this importance increasing international business and international investments, emergence of the international corporation, furthering accounting research and development and alignment with other disciplines.

It is maintained that an international accounting problem exists and that this problem is the outgrowth of three economic phenomena of our time, namely growth of international business investments, regionalization, and economic development efforts. In scope, the problem might be smaller than one would expect at first. Financial reporting, financial accounting, and legislative influences appear to be the major aspects of the problem. In an approach to a solution, previously published comment was summarized and briefly evaluated. Finally, discussion about the problem and inquiry into its particulars is urged upon the profession.

The Eighth International Congress of Accountants will be held during late summer or early fall of 1962 in New York City. The American Institute of Certified Public Accountants will be the host organization. It will be the first time since 1929 that this international body will convene in the U.S., and the third time since its genesis at St. Louis in 1904. It was felt that the organization cannot emphasize enough the international responsibilities which collectively accountants must either face or squarely admit that they are unwilling to bear. The organization is confronted with different sets of accounting standards and practices in nearly every country outside the Soviet Sphere. Regardless of any explanations for this phenomenon, the practical situation simply is that just by virtue of the different national accounting practices one and the same economic or business condition is reflected in a number of different ways in accounting reports. The U.S. subsidiaries or affiliates domiciled in foreign countries have to meet local accounting standards for purposes of company registration, local management, business comparability, or what not. Private international investment has soared in the last decade; and so has the United States' dependence on international raw material sources. Many firms in the U.S. derive sizable amounts of revenue from business outside the United States.

Reviews various books on accounting. "International Financial Reporting,"; "Comparative Glossary of Accounting Terms in Canada, the United Kingdom and the United States,"; "Accounting for Goodwill,"; "Interim Financial Reporting."

Reviews the book "Bilanzierungsgrundsätze im Wertpapierrecht der U.S.A.," by Peter Wesner.

Reviews the book "Aspects of Accounting and Auditing," vol. 1, edited by J. Langhout.

This article highlights the report of the Committee on International Accounting Research of the American Accounting Association. The report is the result of the 1966/67 research effort of the Committee on International Accounting Research of the American Accounting Association. In carrying out its assignment the Committee felt that it would be appropriate to comment on the usefulness of the "standards" and "guidelines" contained in "A Statement of Basic Accounting Theory" as well as to appraise selected international accounting reports in the light of these standards and guidelines. For this purpose the committee decided to study a recent annual report for each of five companies from each of the following countries: Argentina; Japan; The Netherlands; Sweden; and Great Britain. While the companies included in the study collectively do a significant amount of international business, it is felt that the sample was too restricted to justify generally valid observations. The comments in this report are therefore best viewed as tentative conclusions which should be tested by more comprehensive studies before being accepted.