COMMENTS ON 'ACCOUNTING AND REPORTING STANDARDS FOR CORPORATE FINANCIAL STATEMENTS--1957 REVISION'
Abstract The author comments on the article "Accounting and Reporting Standards for Corporate Financial Statements-1957 Revision," by George J. Staubus in the January 1958 issue of the periodical "The Accounting Review." The article states that "Distinguishing between monetary assets and non-monetary assets paves the way for several possible desirable developments in accounting practice." But, no hint is given of the nature of these developments which are so possible and so desirable. Mr. Staubus seemed to go to considerable length in praising the committee for absurdities of which it might fairly plead innocent. With regard to "equities," the committee shows a remarkable unwillingness to use plain words and Mr. Staubus plunges even deeper into the twilight of involved and obscure wordiness. Both seem loath to admit that the liabilities of an enterprise are merely the debts that a court will, at need, enforce against the enterprise. A major weakness of the committee report is that it virtually ignores the legal framework. The committee has accomplished miracles of round-about generalization in avoiding the fundamental admission that one major purpose of accounting is the rendering of a report of stewardship by managers to owners. Mr. Staubus rightly criticizes the committee for its indirect approach to the problem of defining the audience to which accounting reports are addressed.
- DOI
- 10.2308/tar-7059487
- Volume
- 33 (3)
- Pages
- 401-402
- Language
- en
- Export
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- Sources
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