When Accounting Principles Board issued Opinion No. 14 it completed a full cycle in its atttitude toward classification of convertible securities. The Board concluded that no portion of proceeds from a convertible bond issue be accounted for as attributable to conversion features. 1 Its earlier position had been that the portion of proceeds attributable to conversion feature or warrants should be accounted for as paid-in capital. 2 The purpose of this paper is to question conclusion of APB 14 by comparing debt-equity distinction on basis of traditional criteria supported by some empirical evidence on conversions.3 The empirical data are examined in context of debt-equity distinctions as they are found in accounting, finance, investment, and legal literature. These distinctions are: (1) maturity date, (2) claim on assets, (3) claim on income, (4) voice in management, (5) maturity value, (6)

Reviews the book "Accounting for Research and Development Expenditures," by Oscar S. Gellein and Maurice S. Newman.

The article discusses socio-economics and accounting education. The purpose of the study was to obtain information relative to the background of accounting graduates in economics. The information was obtained by the use of a questionnaire which was sent to all schools in the American Association of Collegiate School of Business (AACSB). Usable replies were received from over 80 percent of the schools. The purpose of the study was to derive certain information concerning the economics requirements of the AACSB schools for accounting majors. It also concerned the degree of flexibility the accounting major had in selecting the economics courses required for graduation. There is very little choice for the accounting major in selecting these economics courses. Almost 80 percent of the AACSB schools do not allow the accounting major to select any of the required economics courses needed for graduation. If there are upper-division electives the accounting major may have a choice in selecting economics courses.

R&D, Materiality, Capitalization, Resource allocation decision