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- Title
BOND DISCOUNT AND DEBT EXPENSE IN TERMS OF CONSISTENT ACCOUNTING.
- Authors
Hord, Warner H.
- Abstract
This article is concerned less with what actually constitutes common accounting practice than with the soundness of the accounting basis upon which such practice rests. Undoubtedly there are those who would prefer the plural-bases in the belief that no one basis can ever explain the whole of accounting practice. Such reasoning, however, appears to place the cart before the horse, as it is tantamount to making current practice though admittedly contradictory and heterogeneous, the acid test of any accounting basis which may be advanced. Furthermore, there is grave danger that a multi basis approach is but a twist of logic by which individual judgments, based on circumstances wholly foreign to pure accountancy, are substituted for accounting control. Actually, it appears literally impossible that multi basis accountancy can ever establish effective control over business reporting in opposition to contradictory non-accounting judgments based on apparently urgent financial expediency, legal prudence, or business policy. This is all the more apparent when it is realized that many of the individual bases within the multi basis of accounting practice were dictated by circumstances from without rather than by controls from within accountancy itself.
- Subjects
ACCOUNTING; BONDS (Finance); DISCOUNT prices; DEBT; ACCOUNTING methods; BUSINESS
- Publication
Accounting Review, 1940, Vol 15, Issue 2, p211
- ISSN
0001-4826
- Publication type
Article