COMPANY ACCOUNTS

Greymouth Evening Star, 21 February 1940, Page 5

COMPANY ACCOUNTS

RIGHTS IN WARTIME A leading, article in “The Accountant”. (London) on company accounts in wartime raises- some points in which a large number of New Zealanders will, be interested. “It is true that in -many trades and industries war produces- abnormal conditions; that price, profit, and cost levels become exceptional; and that stability largely disappears ‘for the duration,’ ” the writer': states. “Nevertheless, trade, commerce and industry continue, shareholders are still interested in the prosperity of their undertakings; and scientific costing assume a quite exceptional importance, specially in the case of the large number of firms that is directly or indirectly engaged on Government, contracts. “If shareholders are entitled to reasonably informative accounts in •time of peace, they are equally entitled to them in time of war. We regard the issue as one of considerable public interest and importance, inasmuch as there is a tendency, which was far too, apparent between 19141928, to regard war as an all-efficient reason and excuse for not doing things that in time of peace are done both as a matter of course and because they are recognised as being necessary. . The attitude embodied in the phrase, ‘There’s war on,’ can easily—far "too' relatively trivial'acts/of'commission. or omission 'into far-reaching ' ..precedents...... ’ Also, ■a’iira^ti'de' ‘originally introduced , r ,;tQ meet warffie ' emergency, conditions easily become a; mote or Tess perihahent pbace-time legacy.' /,, ' > - '■■'“.Thri ’accounting profession has.. ~a special interest in seeing.' that .....th,e. niethbtf of 'coihpilmg company,.reports ’shbuid'Bb far as is possible, continue during the war to be'-based on' normal practice . .../• , ■ . - 111 "“Any st-ftp 7 in the reverse, direction*] fs ji a''retrograde step, and in most.in-j stances it'could not be'justified on the plea of wartime conditions. Shareholders arid'members of the profession can exercise a consideiable measure of control in the matter. The suspension-Of the railway traffic, returns may not be of first-class im- ; pprtance initself, biit' it might coni' '‘c'riiVably‘-b’edome a precedent ”of firstclariS >Mnportance.A"lt' ; 'is : - not only, for l W- Safeguarding of liberty that eternal vigilance is needed.”