Report of Committee on Terminology
Issued by the Committee on Accounting Procedure, American Institute of Accountants, 270 Madison Avenue, New York 16, N. Y.
Copyright 1941 by American Institute of Accountants
IN ACCOUNTING Research Bulletins Nos. 7 and 9 there were published reports of the committee on terminology. A further report of that committee is presented herewith. In it the committee recommends that the committee on accounting procedure should consider the feasibility of bringing about the elimination of the term "surplus" in published financial statements and the substitution of more informative designa-tions. At a meeting of the committee on accounting procedure held in Detroit on September 15th, it was resolved to appoint a subcommittee to consider the feasibility of such a step, with a view to an early report to the full committee. Expressions of opinion on the subject from members of the Institute or others will be welcomed by the research department and the committee on terminology.
REPORT OF THE COMMITTEE ON TERMINOLOGY
To THE COUNCIL OF THE AMERICAN INSTITUTE OF ACCOUNTANTS:
In its report of May 14, 1940, the committee indicated its intention (subject to the approval of the Council subsequently given) of under-taking discussion of specialized accounting uses of a number of terms. It may be well to emphasize at this time that the committee welcomes criticisms of its bulletins and also suggestions from members of the Institute or others for modifications of existing practice whenever that would tend to a better understanding of accounts. In the report above mentioned, the committee said: "A question may no doubt be raised whether all such uses are necessary or expedient or whether some should be abolished" (page 54).
In this report the committee proposes to discuss the uses of the word "surplus." Nowhere in accounting, perhaps, is the conflict between
ANNUAL REPORT, 1941
Accounting Research BULLETINS