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The Accounting Review Vol. 33 No. 1 1958

LEGAL CONCEPTS OF THE CORPORATION.

Robert T. Sprouse

Assistant Professor, University of California, Berkeley. 1

Abstract

Accounting analyses and generally accepted accounting practices have been influenced to a considerable extent by the law. The article presents a report of the survey of the legal literature to determine the extent to which those in the field of law have accepted the concept of the corporation as a legal entity, which has an independent existence quite separate and distinct from its officers and stockholders and the extent to which other concepts have been advocated. Because the significance of a legal concept ultimately depends upon its application in arriving at judicial decisions, the survey induced the examination of cases where the court's concept of the corporation was a material factor in arriving at its decision. The results of the survey suggest that considerable caution is warranted in the evaluation of the acceptability of accounting procedures that hinge upon a particular legal interpretation. Specifically, the results of the survey suggest that the acceptability of accounting analyses cannot with confidence be based entirely upon a particular legal concept of the corporation.

DOI
10.2308/tar-7130330
Volume
33
Issue
1
Pages
37-49
Language
en
Sources
openalex crossref

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