During and after the first World War, France, like many other belligerents, failed to meet her current budgetary expenditure from the revenues arising from taxation. The result of the inflation created many problems for the business man. Depending upon the attitude one holds with reference to the quantity theory of money, inflation either created these problems through its effect in bringing about a very rapid increase in prices, or these problems, created by other economic processes, than by action on prices, finally resulted in a marked increase in prices. French accounting theoreticians had the advantage of the earlier German experience and some of the new accounting methods proposed were but adaptations of German inflation accounting theory and practice. The elaboration of these methods by both French and German accounting theorist constitutes a definite contribution to general accounting theory. An understanding of the principles involved may help in settling some of the controverted questions of principle which attract the attention of accountants.

The article proposes to discuss the regulation, by governmental authority, of the profession of public accountancy in France with particular reference to the newly created diploma, of Expert-Comptable Reconra par l'Etat. The role of the French public accountant and consequently the importance of the new decree affecting the profession and giving its members an official title and status may be more dearly grasped if the main characteristics of private accounting practice in France are first briefly sketched. To the U.S., the French public accountant is obliged to ply his trade in some what antiquated surroundings. The business technique of the French resembles the U.S. practice which prevailed at the beginning of this century rather than that of the present time. Compared to the U.S. business organization, that of the French is less formal and more personal, more human than mechanical, traditional rather than efficient, conservative rather than aggressive. While then are many large units, France is generally considered the country of small, personal and family enterprises.