TWO CONCEPTS OF ACCOUNTING.

The article refers to government policy on accounting practices in the United States. Controversies have arisen in accounting because it is applied to business problems and government policy on trade regulation, taxes, and profits. Examples include confusion over the original cost rule in financial accounting and base points in pricing related to cost accounting and budgeting. Policy perspectives of the Federal Trade Commission, Interstate Commerce Commission, Civil Aeronautics Board, and Federal Power Commission are mentioned. Topics include the views of Lord MacMillan on two types of thinking, amortization for utilities transferring property within the industry, three explanations for "write-ups," fair commercial value negotiated at arm's length, and tax formulation in California.