The Need for an Accounting Court.

Abstract In this article the author, a practicing accountant, gives his views on need of an accounting court. As an accountant his work in reporting income to owners of businesses is so practical that it is equivalent to food and rent to the people he reports to. The author also states that the financial statements of a company must be said in a brief paragraph. Usually the companies are very critical of accounting principles when these so called principles are unrealistic, inconsistent, or do not protect or distinguish the scrupulous management from the unscrupulous. Shareholders want the financial statements prepared on a basis comparable with other companies in the same industry or in other industries. Thus, the idea that accounting principles meet the test of public needs, even though they are not consistently applied among companies, violates the very purpose for which the statements are used. According to the author, a practicing accountant must have a definite explanation of the utility of every accounting principle to be observed if he is to serve a professional purpose. There is no place where the basic criteria of accounting principles can be brought to issue. This is the reason for the need of an accounting court.