Comments on 'An Introduction to Corporate Accounting Standards'

Abstract The article comments on the paper "An Introduction to Corporate Accounting Standards," by W.A. Paton and A.C. Littleton. The work attempts to build a coherent structure on a philosophical foundation, rather than to discover any coherence in the field of accounting as it is. This savors of thirteenth century science, when conclusions were derived from the application of logic to classical preconceptions, and when recourse to the laboratory was beneath the dignity of scientists. The predominantly deductive approach carries with it the temptation to leave out or deny what ever may conflict with conclusions. Not only does this monograph limit itself to corporation accounting of income but it seems to be mainly preoccupied with manufacturing concerns. Costs attach to products sold, of which more might be said. Contractual interest is relegated to the status of dividends, which statement is good for plenty of argument. And speaking of honest men, it seems that the authors of this monograph have a profound distrust of management, even though they emphasize that a chief purpose of accounting is to serve and represent corporate management.