Accounting Principles: The Board and Its Problems

Abstract

It is a pleasure to participate in a small way in the effort you are putting forth-towards gaining a greater understanding of the accounting process-all of which will contribute importantly to the development of sound accounting principles. Too many discussions of accounting principles and too many decisions about accounting principles have been made in a vacuum or on the grounds of expediency. They have been made without the benefit of empirical evidence-evidence systematically researched, evidence rigorously interpreted. I know that you would agree with me that we should have no illusions concerning the speed with which measurable progress in accounting principles can be made. But it is nonetheless encouraging to see that beginnings are being made in empirical research in accounting, witnessed by the discussions that are being held here at the University. I am convinced that, in the long run, only by this kind of effort can continued progress in developing accounting principles be accomplished. Although I have had only a brief chance to review some of the papers you are discussing, I have seen enough to want sincerely to encourage you to continue these fine efforts. For the past few years I have been concerned, as some of you have surely been, over the questions and criticisms about accounting principles appearing in the press; about the doubts which such comments must arouse among people outside our profession; and about the possibly divisive influences which could develop within the profession over the issues which seem to be of concern. There is no need to go over again what is familiar ground to all of you. Let me just recall to your minds such a statement as that made by the