This study is a sequel to an earlier computer simulation of foreign accounting principles, the results of which were published in the Autumn, 1966 issue of this journal.' In the present study, the actual transaction data of two U.S. manufacturing firms, the same data that had been used previously for a multinational comparison, were used in a computer model to simulate prevailing U.S. and German Accounting practices. The aim was to obtain some notion of the different effects of U.S. and West German accounting practices on financial statements, assuming the underlying transactions are the same. The study is divided into five parts:

German GAAP, US GAAP, 1965 Corporation Law, Accounting standards