The Accounting Review Vol. 29 No. 1 1954
RATIONALIZATION IN THE ACCOUNTING MEASUREMENT OF INCOME.
Abstract
The desire to use only objectively recorded figures has had great influence in the development of the rationalized modifications. To accomplish adjustment of the income measurement what appears to be needed under currently accepted accounting thinking is ingenious argument supporting manipulation of the use made of recorded figures. When in the twenties and thirties management in response to pressures, endeavored to reflect on the books and in the statements the replacement values of assets, the accountant, to say the least, was disturbed. In the current experience, although he prides himself that he is maintaining traditional appearances, the accountant has to considerable extent capitulated. The capitulation, however, is subtle in that it is accomplished through modification of the older procedures, within the overall cost process. it is now said that accounting is a historical process but the history which the statements summarize is a rationalized history and not the history of the items and the events which the statements are intended to depict.
- DOI
- 10.2308/tar-7128615
- Volume
- 29
- Issue
- 1
- Pages
- 3-14
- Language
- en
- Sources
- openalex crossref