Perceptions of External Accounting Transfers under Entity and Proprietary Theory

DEMONSTRATIONS THAT ACCOUNTANTS NEED TO REACH UNANIMITY ON THE FUNDAMENTAL QUESTION OF THE NATURE OF EXTERNAL ACCOUNTING EXCHANGES BEFORE GUIDELINES CAN BE COMPLETED FOR THE VALUATION OF THE TWO-WAY FLOW OF GOODS IS THAT WRITERS WILL CONTINUE TO BE AT ODDS ON THE ISSUE OF THE METHOD FOR ATTACHING VA...

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Bibliographic Details
Published in:The Accounting review 1974-04, Vol.49 (2), p.233-244
Main Authors: Bird, Francis A., Davidson, Lewis F., Smith, Charles H.
Format: Article
Language:English
Subjects:
Accountancy
Accounting
Accounting procedures
Capital structure
Charge accounts
Debits
Debt
Dividends
Legal entities
Reasoning
Resource ownership
Revenue
Transfers
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Summary:DEMONSTRATIONS THAT ACCOUNTANTS NEED TO REACH UNANIMITY ON THE FUNDAMENTAL QUESTION OF THE NATURE OF EXTERNAL ACCOUNTING EXCHANGES BEFORE GUIDELINES CAN BE COMPLETED FOR THE VALUATION OF THE TWO-WAY FLOW OF GOODS IS THAT WRITERS WILL CONTINUE TO BE AT ODDS ON THE ISSUE OF THE METHOD FOR ATTACHING VALUES TO THE EXCHANGES UNTIL AGREEMENT IS REACHED ON THE QUESTION OF THE NATURE OF THE EXCHANGE. THE WRITERS AGREE THAT A VALUATION SCHEME IS NOT COMPLETE UNLESS DEVELOPED FOR BOTH INTERNAL EXCHANGES, E.G., RECORDING OF DEPRECIATION, AND EXTERNAL EXCHANGES, E.G., RECORDING OF PURCHASE OF AN AUTOMOBILE. HOWEVER, IT SEEMS REASONABLE TO CONCLUDE THAT MOST INTERNAL EXCHANGES ARE MERE RECLASSIFICATIONS OF PRIOR EXTERNAL EXCHANGES, AND THAT IT IS THEREFORE FUNDAMENTALLY MORE IMPORTANT TO HAVE AN APPROPRIATE UNDERSTANDING OF EXTERNAL EXCHANGES.
ISSN:0001-4826
1558-7967