Issued by the Committee on Accounting Procedure,
American Institute of Accountants 13 East 41st Street, New York 17. N. Y.
Copyright 1943 by American Institute of Accountants
November, 1943 No. 20
Report of Committee on Terminology
THE 1943 ANNUAL REPORT of the committee on terminology con-tinues the discussion of "depreciation" which was commenced in the 1942 report. The committee on accounting procedure has ap-proved the definition suggested by the committee on terminology and has authorized the publication of its report as an accounting research bulletin. As in the past, the committee on terminology and the research department will welcome suggestions and comments from members of the Institute and others on the matters discussed in this report and on the appended definition.
REPORT OF THE COMMITTEE ON TERMINOLOGY ANNUAL REPORT, 1943
To THE COUNCIL OF THE
AMERICAN INSTITUTE OF ACCOUNTANTS:
In its report of October, 1942, the terminology committee dis-cussed the nature of depreciation and outlined the sort of definition to which its discussion seemed to point. It deliberately refrained from any attempt to formulate a definition and, instead, invited comments and suggestions.
The response to this invitation was less extensive than had been hoped. However, the committee received from the chief accountant of the Federal Power Commission a criticism of the discussion and a copy of a definition which was under consideration by the National Association of Railroad and Utilities Commissioners. The chairman of this committee immediately offered to publish the proposed defini-tion with comments, but suggested alternatively that the Institute should be given an opportunity to comment on the NARUC com-mittee's report as a whole in advance of its publication. This sugges-tion was favorably received by the chairman of the NARUC com-