Kenneth O. Elvik, Editor
IOWA STATE UNlVERSlTY
Reviewed by Dale L. Flesher University of Mississippi
This publication is a readings book consisting of articles authored by Ralph S. Johns. Ralph Johns began his accounting career with Haskins & Sells in 1926. He became a partner in 1943, managing partner of the Chicago office in 1951, and retired from the firm in 1969. Mr. Johns cooperated in the publication of this book and in cluded his current comments relative to the background behind each article and the subsequent effects.
Several of the articles (and comments) would be quite interesting to those historians interested in early 20th century accounting. For example, one article on accountants’ ethics discusses the evolution ary development of various parts of the Code of Professional Ethics. It should be a required source for anyone doing work in the area of ethics history.
Johns commented that he had intended to write a book on the history of the auditor’s certificate (report) when he retired. In fact, he accumulated material for 20 years. However, when retirement came, he decided instead to devote his time to foreign travel. The subject is still a good topic for a dissertation. Unfortunately, Johns disposed of his 20 years accumulation of materials on the subject when he decided not to do the book. An article on the topic pro vides considerable insight into the subject. Most interesting are examples of early certificates where the words “true” and “correct” were used.
The articles on income tax allocation are interesting not only be cause of the subject matter, but also because of Johns’ view on the topic since he was against allocation. One 1945 article on taxes is interesting in retrospect since it questioned whether Accounting Research Bulletins were mandatory and, if so, what the effective date would be. He particularly deplored the fact that ARBS were dumped upon the profession without any forewarning in the form of an exposure draft.
Other areas that receive lengthy treatment include college ac counting and legal liability. The legal liability article is especially enlightening in that it discussed several little known cases.
Many of the articles are of much relevance today. For instance, the first fifty pages of the book are devoted to the advantages of the natural business year. Prior to Johns’ first publication on the subject in 1926, about 72% of the firms in this country ended their year on December 31. The latest Accounting Trends and Techniques in dicates that December 31 still accounts for nearly 2/3 of all closings. Institute legislative policy is discussed in a 1957 article. The article is very timely in this reviewer’s home state as the question of regula tory versus permissive legislation is still a hotly debated topic. Per haps John’s should be applauded for writing articles of such endur ing value.
Most accountants would enjoy reading this book. The University of Illinois is making a contribution to the historical literature by publishing the works of such important early accounting practi tioners.
DR Scott, Theory of Accounts, (New York: Arno Press, Reprint Edi tion, 1976, pp. 284, $18.00)
