QUASI—REORGANIZATIONS IN REVERSE.
The recent discussion among accountants concerning reinstatement of fully amortized emergency facilities was in some respects, too late. It is tempting to use hindsight and observe that perhaps a more useful and timely framework within which to handle the question of reinstatement might have emerged if the profession had started to think about and to discuss the problem earlier. The quasi reorganization device has been applied during periods of business depression. In the depression situation the recorded amounts were written down in an attempt to restore current reality to tile accounting process. There is considerable justification for arguing that some of the most pressing problems currently facing accountants, namely, depreciation on a replacement cost basis, the use of inventory reserves, and the practice of expensing a portion of current capital outlay, have as their common origin a feeling that currently the accounting process is producing inadequate and, perhaps, misleading financial statements. There is not the slightest intention to argue that now is the time for quasi-reorganizations, in reverse or otherwise, but it does appear that now is the proper time to investigate, discuss, and settle upon the limits of accounting reorganizations. The relevant conditions precedent may not be far distant.
- DOI
- 10.2308/tar-7053539
- Volume
- 23 (2)
- Pages
- 154-157
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref