The Accounting Review Vol. 39 No. 1 1964
NEEDED: A REVOLUTION IN THE DETERMINATION AND APPLICATION OF ACCOUNTING PRINCIPLES.
Abstract
The article focuses on the adequacy of accounting principles. Circumstances for which present-day accounting principles or standards were designed have undergone a major metamorphosis without a corresponding development in accounting concepts and practices. Even the accountancy profession has not recognized the fact that the economy of the U.S. has experienced a major transformation during the past half of a century. It has evolved into an American Economic Republic with the resultant delegation of responsibility and power from the shareholders to the professional management group. This shift has produced a dichotomy of interests and objectives. The author states that the present-day organizational structure and theoretical foundation and research apparatus of accounting profession are not fulfilling accountant's role of discerning and communicating economic truths to those who are vitally concerned with such truths. Failure to bring about a revolution in accounting would lead governmental agency to assume the very functions for which accountants are now especially responsible.
- DOI
- 10.2308/tar-7106843
- Volume
- 39
- Issue
- 1
- Pages
- 12-15
- Language
- en
- Sources
- openalex crossref