The Accounting Review Vol. 20 No. 2 1945
LEGAL REQUIREMENTS AND ACCOUNTING STANDARDS.
Abstract
Accounting standards should be orderly, systematic, and coherent; they should be in harmony with observable, objective conditions, they should be impersonal and impartial. Accountants know that laws cannot be ignored, but this does not necessarily imply that legal requirements must be given precedence in the formation of accounting standards. It is the purpose of this article to present two cases involving corporate capital stock transactions in which certain legal aspects of the transactions are considered. These cases will be discussed with a view toward establishing the extent to which legal factors are to be given precedence in their accounting presentation. Both cases concern the accounting for original issues of capital stock. Case one, however, relates to the time of issuance, whereas case two refers to the recording and reporting of the consideration received. The formidable task of developing accounting standards is being accomplished by the accounting profession to the vigorous accompaniment of criticism both within and without the profession. The extent to which legal requirements must be considered is one of the loudest instruments in this accompaniment.
- DOI
- 10.2308/tar-7037277
- Volume
- 20
- Issue
- 2
- Pages
- 139-147
- Language
- en
- Sources
- openalex crossref