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vi Preface

• A discussion of FASB ASC 606, “Revenue from Contracts with Customers,” in Chapter 5.
• A discussion of IFRS No. 16, “Revenue from Contracts with Customers,” in Chapter 5.
• A discussion of The Joint Transition Resource Group in Chapter 5.
• A discussion of the FASB’s simplification initiative in Chapter 6.
• A discussion of the two issues addressed by the simplification initiative—discontinued opera-
tions and extraordinary items—in Chapter 6.
• A discussion of Accounting Standards Update 2011‐04, “Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements,” in Chapter 7.
• A discussion of Accounting Standards Update 2016‐01, “Financial Instruments—Overall
(Subtopic 825‐10): Recognition and Measurement of Financial Assets and Financial Liabil-
ities,” in Chapters 7, 8, 10, and 11.
• A discussion of Accounting Standards Update 2015‐01, “Simplifying the Measurement of
Inventory,” in Chapter 8.
• A discussion of working capital management in Chapter 8.
• A discussion of inventory management in Chapter 8.
• A discussion of Accounting Standards Update No. 2012‐02, “Intangibles—Goodwill and
Other (Topic 350): Testing Indefinite‐Lived Intangible Assets for Impairment,” in Chapter 10.
• Add a discussion of Accounting Standards Update No. 2011‐08, “Intangibles—Goodwill and
Other (Topic 350): Testing Goodwill for Impairment,” in Chapter 10.
• A discussion of accounting for financial assets contained in IFRS No. 9, “Financial Instru-
ments,” in Chapter 10.
• A discussion of Accounting Standards Update No. 2015‐03, “Interest—Imputation of Interest:
Simplifying the Presentation of Debt Issuance Costs,” in Chapter 11.
• A discussion of the recognition and measurement requirements for financial liabilities
contained in IFRS No. 9, “Financial Instruments,” in Chapter 11.
• A discussion of Accounting Standards Update No. 2013‐11, “Income Taxes: Presentation of an
Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a
Tax Credit Carryforward Exists,” in Chapter 12.
• A discussion of ASU 2016-02 on accounting for leases in Chapter 13.
• A discussion of IFRS No. 16, “Leases,” in Chapter 13.
• A discussion of the proposed ASU, “Compensation—Retirement Benefits—Defined Benefit
Plans—General (Subtopic 715‐ 20),” in Chapter 14.
• A discussion of the proposed ASU, “Compensation—Retirement Benefits (Topic 715),” in
Chapter 14.
• A discussion of the amendment to IAS No. 19, “Retirement Benefit Costs,” in Chapter 14.
• A discussion of the FASB’s Exposure Draft, “Simplifying the Accounting for Measurement
Period Adjustments,” in Chapter 16.
• A discussion of Accounting Standards Update No. 2014‐15, “Presentation of Financial State-
ments—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as
a Going Concern to the section on Going Concern,” in Chapter 17.
 Preface vii

• A discussion of Accounting Standards Update No. 2013‐07, “Presentation of Financial

­Statements: Liquidation Basis of Accounting,” to the section on Going Concern in Chapter 17.
• A discussion of the exposure draft on financial statement disclosures and materiality in
Chapter 17.
• A discussion of the SEC’s Disclosure Effectiveness Project in Chapter 17.
• A discussion of the PCAOB’s new amendments to its auditing standards that require the
­disclosure of: the name of the engagement partner; and the names, locations, and extent of
participation of other accounting firms that took part in a group audit in Chapter 17.
• A discussion of the revised AICPA Code of Professional Conduct that restructures the Code
to improve its readability and converges the Code with international standards in Chapter 17
• A discussion of the IASB’s “Management Commentary—A Framework for Presentation, in
Chapter 17.
The publication of this text would not be possible without the assistance of many individuals.
We thank our research assistant, Donna Morris, for her help. We extend our thanks to the staff at
John Wiley & Sons, including Emily McGee our Acquisitions Editor, Nichole Urban our Project
Editor, Arun Surendar our Production Editor, and Karen Slaght our copyeditor.
Contents

Preface v

1 The Development of Accounting Theory 1

The Early History of Accounting 2
Accounting in the United States since 1930 4
The Role of Ethics in Accounting 18
International Accounting Standards 22
Cases 23
FASB ASC Research 25
Room for Debate 26

2 The Pursuit of the Conceptual Framework 27

The Early Theorists 27
Early Authoritative and Semi-Authoritative Organiza­tional Attempts to
Develop the Conceptual Framework of Accounting 29
The FASB’s Conceptual Framework Project 38
Principles-Based versus Rules-Based Accounting Standards 51
International Convergence 55
Cases 65
FASB ASC Research 67
Room for Debate 67

3 International Accounting 68
International Business Accounting Issues 69
The Development of Accounting Systems 69
Preparation of Financial Statements for Foreign Users 71
The International Accounting Standards Committee 71
The IFRS Foundation Constitution 75
The Uses of International Accounting Standards 79
The IASC and the IOSCO 80
The IASB Annual Improvements Project 81
The Use of IASC Standards 81
IASB–FASB Convergence 82
ix
x Contents

The Effects of International versus U.S. GAAP Accounting Standards 83

Standards Overload 86
Framework for the Preparation and Presentation of Financial Statements 87
IAS No. 1 and IFRS No. 1 95
Cases 96
FASB ASC Research 98
Room for Debate 98

4 Research Methodology and Theories on the Uses of Accounting Information 99

Research Methodology 99
The Outcomes of Providing Accounting Information 102
The Relationship among Research, Education, and Practice 120
Cases 121
FASB ASC Research 123
Room for Debate 123

5 Income Concepts, Revenue Recognition and Matching 125

The Nature of Income 126
Economic versus Accounting Income 130
Revenue Recognition 132
Matching 149
Income Recognition Constraints 151
Earnings Quality, Earnings Management, and Fraudulent Financial Reporting 153
International Accounting Standards 159
Cases 159
FASB ASC Research 162
Room for Debate 162

6 Financial Statement I: The Income Statement 164

The Economic Consequences of Financial Reporting 164
Income Statement Elements 164
Statement Format 166
Proposed Format of the Statement of Compre­hensive Income 188
The Value of Corporate Earnings 190
International Accounting Standards 195
Cases 199
FASB ASC Research 202
Room for Debate 202
 Contents xi

7 Financial Statements II: The Balance Sheet and the Statement of Cash Flows 203
The Balance Sheet 203
Fair Value Mea­surements 214
Proposed Format of the Statement of Financial Position 220
Evaluating a Company’s Financial Position 222
The Statement of Cash Flows 225
Proposed Format of the Statement of Cash Flows 233
Financial Analysis of Cash-Flow Information 236
International Accounting Standards 237
Cases 243
FASB ASC Research 246
Room for Debate 247

8 Working Capital 248

Development of the Working Capital Concept 248
Current Usage 250
Components of Working Capital 250
Working Capital Management 261
International Accounting Standards 268
Cases 269
FASB ASC Research 272
Room for Debate 273

9 Long-Term Assets I: Property, Plant, and Equipment 274

Property, Plant, and Equipment 274
Financial Analysis of Property, Plant, and Equipment 279
Cost Allocation 279
Capital and Revenue Expenditures 282
Recognition and Measurement Issues 283
Impairment of Value 283
Accounting for Asset Retirement Obligations 286
International Accounting Standards 288
Cases 294
FASB ASC Research 298
Room for Debate 299
xii Contents

10 Long-Term Assets II: Investments and Intangibles 300

Investments in Equity Securities 300
Investments in Debt Securities 309
Impairment of Investments in Unsecuritized Debt 312
Transfers of Financial Assets 313
Intangibles 314
Financial Analysis of Investments and Intangibles 322
International Accounting Standards 323
Cases 332
FASB ASC Research 335
Room for Debate 336

11 Long-Term Liabilities 337

The Definition of Liabilities 337
Recognition and Measurement of Liabilities 338
Debt versus Equity 339
Classifi­cation of Long-Term Debt 342
Other Liability Measurement Issues 354
Troubled Debt Restruc­turings 359
Financial Analysis of Long-Term Debt 362
International Accounting Standards 364
Cases 370
FASB ASC Research 374
Room for Debate 374

12 Accounting for Income Taxes 376

Historical Perspective 376
The Income Tax Allocation Issue 377
Financial Analysis of Income Taxes 397
International Accounting Standards 399
Cases 402
FASB ASC Research 405
Room for Debate 405

13 Leases 407
Accounting for Leases 408
Financial Analysis of Leases 419
 Contents xiii

Current Developments 421

Cases 434
FASB ASC Research 437
Room for Debate 438

14 Pensions and Other Postretirement Benefits 439

Historical Perspective 441
Accounting for the Pension Fund 450
The Employee Retirement Income Security Act 451
Other Postret­irement Benefits 452
SFAS No. 132 454
SFAS No. 158 454
Current Developments 456
Financial Analysis of Pension and Other Postre­tirement Benefits 457
International Accounting Standards 458
Cases 460
FASB ASC Research 462
Room for Debate 462

15 Equity 463
Theories of Equity 463
Definition of Equity 468
Reporting Equity 471
Financial Analysis of Stock­holders’ Equity 483
International Accounting Standards 484
Cases 486
FASB ASC Research 490
Room for Debate 490

16 Accounting for Multiple Entities 491

Business Combinations 491
Accounting for Business Combinations 492
Business Combinations II 497
Theories of Consolidation 501
Noncon­trolling Interest 502
Drawbacks of Consolidation 505
Special-Purpose Entities 506
Variable Interest Entities 506
xiv Contents

Segment Reporting 508

Foreign Currency Translation 512
International Accounting Standards 519
Cases 530
FASB ASC Research 533
Room for Debate 534

17 Financial Reporting Disclosure Requirements and Ethical Responsibilities 535

Recognition and Measurement Criteria 535
Areas Directly Affected by Existing FASB Standards: Suppl­ementary Information 540
Other Means of Financial Reporting 548
Other Useful Information for Investment, Credit, and Similar Decisions 551
Securities and Exchange Commission 553
Ethical Res­ponsibilities 560
International Accounting Standards 569
Cases 571
FASB ASC Research 575
Room for Debate 576

Index 577
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The Development of
C HAP TER 1
Accounting Theory

I n its simplest form, theory may be just a belief, but for a theory to be useful, it must have wide
acceptance. Webster defined theory as:
Systematically organized knowledge, applicable in a relatively wide variety of circum-
stances; a system of assumptions, accepted principles and rules of procedure to analyze,
predict or otherwise explain the nature of behavior of a specified set of phenomena.1
The objective of theory is to explain and predict. Consequently, a basic goal of the theory of a
particular discipline is to have a well‐defined body of knowledge that has been systematically
accumulated, organized, and verified well enough to provide a frame of reference for future
actions.
Theories may be described as either normative or positive. Normative theories explain
what should be, whereas positive theories explain what is. Ideally, there should be no such dis-
tinction because a well‐developed and complete theory encompasses both what should be and
what is.
The goal of accounting theory is to provide a set of principles and relationships that explain
observed practices and predict unobserved practices. That is, accounting theory should be able
to explain why companies elect to use certain accounting methods over others and should enable
users to predict the attributes of firms that elect to use various accounting methods. As in other
disciplines, accounting theory should also be verifiable through accounting research.
The development of a general theory of accounting is important because of the role
accounting plays in our economic society. We live in a capitalistic society, which is characterized
by a self‐regulated market that operates through the forces of supply and demand. Goods and
services are available for purchase in markets, and individuals are free to enter or exit the market
to pursue their economic goals. All societies are constrained by scarce resources that limit the
attainment of all individual or group economic goals. In our society, the role of accounting is to
report how organizations use scarce resources and to report on the status of resources and claims
to resources.
As will be discussed in Chapter 4, there are various theories of accounting and the uses
of accounting information, including the fundamental analysis model, the efficient markets hy-
pothesis, the behavioral finance model, the capital asset pricing model, the positive accounting
theory model, the human information processing model, and the critical perspective model.
These often competing theories exist because accounting theory has not yet developed into the
state described by Webster’s definition. Accounting research is needed to attain a more general
theory of accounting, and in this regard the various theories of accounting that have been posited
must be subjected to verification. A critical question concerns the usefulness of accounting data
to users. That is, does the use of a theory help individual decision makers make more correct
decisions? Various suggestions on the empirical testing of accounting theories have been offered.2
As theories are tested and are either confirmed or discarded, we move closer to a general theory
of accounting.

1
Webster’s 11th New Collegiate Dictionary (Boston: Houghton Mifflin, 1999).
2
See, for example, Robert Sterling, “On Theory Structure and Verification,” The Accounting Review (July 1970): 444–457.

1
2 CHA P T E R 1 The Development of Accounting Theory

The goal of this text is to provide a user perspective on accounting theory. To this end, we
first review the development of accounting theory to illustrate how investors’ needs have been
perceived over time. Next we review the current status of accounting theory with an emphasis
on how investors and potential investors use accounting and other financial information. Finally,
we summarize current disclosure requirements for various financial statement items and provide
examples to show how companies comply with these disclosure requirements.

THE EARLY The work of Denise Schmandt‐Besserat suggests that that the origins of writing are actually
HISTORY OF found in counting. This assertion is based on the fact that at nearly every Middle Eastern archeo-
logical site the researchers have found little pieces of fired clay that they could not identify. Sub-
ACCOUNTING sequently, Schmandt‐Besserat’s research found that the tokens composed an elaborate system of
accounting that was used throughout the Middle East from approximately 8000 to 3000 BC. Each
token stood for a specific item, such as a sheep or a jar of oil, and it was used to take inventory
and keep accounts.3
Other accounting records dating back several thousand years have been found in var-
ious parts of the world. These records indicate that at all levels of development, people desire
information about their efforts and accomplishments. For example, the Zenon papyri,4 which
were discovered in 1915, contain information about the construction projects, agricultural activ-
ities, and business operations of the private estate of Apollonius for a period of about thirty years
during the third century BC.
According to Hain, “The Zenon papyri give evidence of a surprisingly elaborate accounting
system which had been used in Greece since the fifth century BC and which, in the wake of Greek
trade or conquest, gradually spread throughout the Eastern Mediterranean and Middle East.”5
Zenon’s accounting system contained provisions for responsibility accounting, a written record
of all transactions, a personal account for wages paid to employees, inventory records, and a
record of asset acquisitions and disposals. In addition, there is evidence that all the accounts were
audited.6
Later, the Romans kept elaborate records, but because they expressed numbers through
letters of the alphabet, they were not able to develop any structured system of accounting. It
was not until the Renaissance—approximately 1300–1500, when the Italians were vigorously
pursuing trade and commerce—that the need to keep accurate records arose. Italian merchants
borrowed the Arabic numeral system and the basis of arithmetic, and an evolving trend toward
the double‐entry bookkeeping system we now use developed.
In 1494 an Italian monk, Fra Luca Pacioli, wrote a book on arithmetic that included a
description of double‐entry bookkeeping. Pacioli’s work, Summa de Arithmetica Geometria Pro-
portioniet Proportionalita, did not fully describe double‐entry bookkeeping; rather, it formalized
the practices and ideas that had been evolving over the years. Double‐entry bookkeeping enabled
business organizations to keep complete records of transactions and ultimately resulted in the
ability to prepare financial statements.
Statements of profit and loss and statements of balances emerged in about 1600.7 Initially,
the primary motive for separate financial statements was to obtain information regarding capital.

3
Denise Schmandt-Besserat, Before Writing: From Counting to Cuneiform Vols. I and II (Austin, TX: University of Texas
Press, 1992).
4
Zenon worked as a private secretary for Apollonius in Egypt in approximately 260 BC.
5
H. P. Hain, “Accounting Control in the Zenon Papyri,” The Accounting Review (October 1966): 699.
6
Ibid., 700–701.
7
A. C. Littleton, Accounting Evolution to 1900 (New York: AICPA, 1933).
 The Early History of Accounting 3

Consequently, balance sheet data were stressed and refined in various ways, and expense and
income data were viewed as incidental.8
As ongoing business organizations replaced isolated ventures, it became necessary to develop
accounting records and reports that reflected a continuing investment of capital employed in various
ways and to periodically summarize the results of activities. By the nineteenth century, bookkeep-
ing had expanded into accounting, and the concept that the owner’s original contribution, plus or
minus profits or losses, indicated net worth emerged. However, profit was considered an increase
in assets from any source because the concepts of cost and income were yet to be fully developed.
Another factor that influenced the development of accounting during the nineteenth century
was the evolution in England of joint ventures into business corporations. Under the corporate
form of business, owners (stockholders) are not necessarily the company’s managers. Thus many
people external to the business itself needed information about the corporation’s activities. More-
over, owners and prospective owners wanted to evaluate whether stockholder investments had
yielded a return. As a consequence, the emerging existence of corporations created a need for
periodic reporting as well as a need to distinguish between capital and income.
The statutory establishment of corporations in England in 1845 stimulated the development
of accounting standards, and laws were subsequently designed to safeguard shareholders against
improper actions by corporate officers. Dividends were required to be paid from profits, and
accounts were required to be kept and audited by persons other than the directors. The Industrial
Revolution and the succession of the Companies Acts in England9 also increased the need for
professional standards and accountants.
During this period commerce was expanding in the United States and by the later part of
the nineteenth century, the Industrial Revolution had arrived, bringing the need for more formal
accounting procedures and standards. Railroads became a major economic influence that created
the need for supporting industries. This led to increases in the market for corporate securities and
an increased need for trained accountants as the separation of the management and ownership
functions became more distinct.
At the end of the nineteenth century, widespread speculation in the securities markets,
watered stocks, and large monopolies that controlled segments of the U.S. economy resulted in
the establishment of the progressive movement. In 1898 the Industrial Commission was formed
to investigate questions relating to immigration, labor, agriculture, manufacturing, and business.
Although no accountants were either on the commission or used by the commission, a prelimi-
nary report issued in 1900 suggested that an independent public accounting profession should be
established to curtail observed corporate abuses.
Although most accountants did not necessarily subscribe to the desirability of the progres-
sive reforms, the progressive movement conferred specific social obligations on accountants.10
As a result, accountants generally came to accept three general levels of progressiveness: (1) a
fundamental faith in democracy, a concern for morality and justice, and a broad acceptance of
the efficiency of education as a major tool in social amelioration; (2) an increased awareness of
the social obligation of all segments of society and introduction of the idea of the public account-
ability of business and political leaders; and (3) an acceptance of pragmatism as the most relevant
operative philosophy of the day.11
The major concern of accounting during the early 1900s was the development of a theory
that could cope with corporate abuses that were occurring at that time, and capital mainte-
nance emerged as a concept. This concept evolved from maintaining invested capital intact to

8
John L. Carey, The Rise of the Accounting Profession (New York: AICPA, 1969), 5.
9
Companies Act is a short title used for legislation in the United Kingdom relating to company law.
10
Gary John Previts and Barbara Dubis Merino, A History of Accounting in America (Columbus: Ohio State University Press,
1979), 177.
11
Richard Hofstadter, Social Darwinism in American Thought (Philadelphia: University of Pennsylvania Press, 1944).
4 CHA P T E R 1 The Development of Accounting Theory

maintaining the physical productive capacity of the firm to maintaining real capital. In essence,
this last view of capital maintenance was an extension of the economic concept of income (see
Chapter 5) that there could be no increase in wealth unless the stockholder or the firm were better
off at the end of the period than at the beginning.
The accounting profession also evolved over time. Initially anyone could claim to be an
accountant, for there were no organized standards of qualifications, and accountants were trained
through an apprenticeship system. Later, private commercial colleges began to emerge as the
training grounds for accountants.
The last quarter of the nineteenth century was a period of economic change that provided
the impetus for the establishment of the accounting profession in the United States. The Institute
of Accountants of New York, formed in 1882, was the first professional accounting organization.
In 1887, a national organization, the American Association of Public Accountants (AAPA) was
formed. The goal of these two organizations was to obtain legal recognition for the public prac-
tice of accounting.12 In 1902, the Federation of Societies of Public Accountants in the United
States was organized. Subsequently, in 1904 the United States International Congress of Accoun-
tants was convened and resulted in the merger of the AAPA and the Federation into the American
Association of Public Accountants. In 1916, after a decade of bitter interfactional disputes, this
group was reorganized into the American Institute of Accountants (AIA).
In the early 1900s, many universities began offering accounting courses. At this time no
standard accounting curriculum existed.13 In an attempt to alleviate this problem, in 1916 the
American Association of the University Instructors in Accounting (AAUIA) was also formed.
Because curriculum development was the major focus at this time, it was not until much later that
the AAUIA attempted to become involved in the development of accounting theory.
World War I changed the public’s attitude toward the business sector. Many people believed
that the successful completion of the war could at least partially be attributed to the ingenuity of
American business. As a consequence, the public perceived that business had reformed and that
external regulation was no longer necessary. The accountant’s role changed from protector of
third parties to protector of business interests. This change in emphasis probably contributed to
the events that followed in the 1920s.
Critics of accounting practice during the 1920s suggested that accountants abdicated the stew-
ardship role, placed too much emphasis on the needs of management, and permitted too much
flexibility in financial reporting. During this time financial statements were viewed as the repre-
sentations of management, and accountants did not have the ability to require businesses to use
accounting principles they did not wish to employ. The result of this attitude is well known. In
1929 the stock market crashed, and as a result, the Great Depression ensued. Although accoun-
tants were not initially blamed for these events, the possibility of government intervention in the
corporate sector loomed.

ACCOUNTING The Great Depression caused business interests to become increasingly concerned about
IN THE UNITED government intervention, and they looked for ways to self‐reform. One of the first attempts to
improve accounting began shortly after the inception of the Great Depression with a series of
STATES SINCE meetings between representatives of the New York Stock Exchange (NYSE) and the American
1930 Institute of Accountants. The purpose of these meetings was to discuss problems pertaining to

12
Previts and Marino, op cit, 135.
13
For example, students now taking such accounting courses as intermediate, cost, or auditing are exposed to essentially the
same material in all academic institutions, and textbooks offering the standard material for these classes are available from
several publishers.
 Accounting in the United States since 1930 5

the interests of investors, the NYSE, and accountants in the preparation of external financial
statements.
Similarly, in 1935 the American Association of University Instructors in Accounting
changed its name to the American Accounting Association (AAA) and announced its intention to
expand its activities in the research and development of accounting principles and standards. The
first result of these expanded activities was the publication, in 1936, of a brief report cautiously
titled, “A Tentative Statement of Accounting Principles Underlying Corporate Financial State-
ments.” The four‐and‐one‐half‐page document summarized the significant concepts underlying
financial statements at that time.
The cooperative efforts between the members of the NYSE and the AIA were well received.
However, the post‐Depression atmosphere in the United States was characterized by regula-
tion. There was even legislation introduced in Congress that would have required auditors to be
licensed by the federal government after passing a civil service examination.
Two of the most important pieces of congressional legislation passed at this time were the
Securities Act of 1933 and the Securities Exchange Act of 1934, which established the Securities
and Exchange Commission (SEC). The SEC was created to administer various securities acts.
Under powers provided by Congress, the SEC was given the authority to prescribe accounting
principles and reporting practices. Nevertheless, because the SEC has generally acted as an over-
seer and allowed the private sector to develop accounting principles, this authority has seldom
been used. However, the SEC has exerted pressure on the accounting profession and has been
especially interested in narrowing areas of difference in accounting practice. (The role of the SEC
is discussed in more detail in Chapter 17.)
From 1936 to 1938 the SEC was engaged in an internal debate over whether it should
develop accounting standards. Even though William O. Douglas (then the SEC chairman, and
later a Supreme Court justice) disagreed, in 1938 the SEC decided in Accounting Series Release
(ASR No. 4) to allow accounting principles to be set in the private sector. ASR No. 4 indicated that
reports filed with the SEC must be prepared in accordance with accounting principles that have
“substantial authoritative support.”14
The profession was convinced that it did not have the time needed to develop a theoretical
framework of accounting. As a result, the AIA agreed to publish a study by Sanders, Hatfield,
and Moore titled A Statement of Accounting Principles.15 The publication of this work was quite
controversial in that it was simply a survey of existing practice that was seen as telling practicing
accountants “do what you think is best.” Some accountants also used the study as an authoritative
source that justified current practice.
Earlier in 1936, the AIA had merged with the American Society of Certified Public Accoun-
tants, forming a larger organization later named the American Institute of Certified Public Accoun-
tants (AICPA). This organization has had increasing influence on the development of accounting
theory. For example, over the years, the AICPA established several committees and boards to
deal with the need to further develop accounting principles. The first was the Committee on
Accounting Procedure. It was followed by the Accounting Principles Board, which was replaced
by the Financial Accounting Standards Board. Each of these bodies has issued pronouncements
on accounting issues, which have become the primary source of generally accepted accounting
principles that guide accounting practice today.

14
This term, initially proposed by Carman Blough, the first chief accountant of the SEC, is meant to mean authority of
“substantial weight” or importance, and not necessarily a majority view. Thus there might be three authoritative positions, all
of which are appropriate at a point in time before some standard is established. The majority might have gone in one direction,
but the minority were also considered “authoritative” and could be used. See William D. Cooper, “Carman G. Blough’s
Contributions to Accounting: An Overview,” Accounting Historians Journal 9, no. 2 (Fall 1982): 61–67.
15
Thomas H. Sanders, Henry Rand Hatfield and William Underhill Moore, A Statement of Accounting Principles (New York:
AICPA, 1938).
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 139.
Friedens-Glocken aus Kriegsmetall.
Solche Geschichten könnte ich aus alten Büchern gar noch viele
erzählen. Aber allerlei mahnt zum Schluß. Das Buch würde sonst zu
dick, zu schwer für die Feldpost, zu teuer und auch zu spät fertig.
Also Schluß.
Auch beim Bücherschreiben sind drei Dinge schwerer als die
übrige ganze Arbeit: 1. ein guter Titel, 2. ein verständiger Anfang
und 3. ein „schöner“ Schluß.
Sicherlich säße ich bei diesen drei Dingen kauend an meinem
Federhalter, wenn ich nicht alles auf der Schreibmaschine
geschrieben hätte und diese sich doch nur schwer anknabbern läßt.
Aber halt. Ein Schluß!
Von Glocken will ich erzählen. Von den Glocken aus alten
Geschützen, den herrlichen Verkündern eines langdauernden
Friedens.
Ich hatte vor einigen Jahren eine genußreiche Nacht im Hause
jenes Glockengießers in Apolda, bei dem Schiller seine Studien zum
„Lied von der Glocke“ machte. Am Abend vor dem Guß wurden 50
bis 60 Zentner alte bronzene Geschützrohre und Metallbarren in den
großen Schmelzofen gebracht, der im wesentlichen einem Backofen
ähnelt. Nur die große Tür des Ofens liegt etwas höher als bei einem
Backofen; denn sonst würde das schmelzende Metall zur Tür
herauslaufen. An der linken Seite hat der Ofen das nach der
Gießgrube hinführende Ausflußloch für das glühende Metall. An der
rechten Seite ist ein hoher Schacht neben dem Ofen aufgemauert.
Der Schacht hat unten einen Rost, und die Flamme, die hier durch
ununterbrochenes Nachheizen von Fichtenholz erzeugt wird, schlägt
in den Schacht empor. Da aber der Schacht jedes Mal wieder
geschlossen wird, sobald ein Scheit Holz in das Feuer geworfen wird,
muß die gewaltige Flamme ihren Weg in den nebenstehenden Ofen
nehmen. Die viele Meter langen Stichflammen umzüngeln die im
Ofen aufgeschichteten Geschützrohre und Metallblöcke und
entweichen an der andern Seite des Ofens durch einen hohen
Schornstein. Von sechs nachmittags, bis über den nächsten Mittag
hinaus, sitzt der Meister dem Ofen gegenüber in einem Sessel. Die
Flammengarbe preßt sich andauernd in einem breiten Fächer
zwischen Ofenwand und Ofentür hervor, und sobald diese dunkelrot
und stark qualmenden Feuerzungen nachlassen, ertönt des Meisters
Ruf: „Auf“. Dann öffnet ein Mann den Schieber des Feuerschachtes
und wirft Holz auf. Stunde um Stunde verrinnt, nur unterbrochen
von dem eintönigen Kommandoruf, von dessen richtiger Abgabe
doch so vieles abhängt. Denn wird zu wenig geheizt, dann würde
sich die Vorbereitung zum Guß endlos lange hinziehen; würde aber
zu stark geheizt, dann würde das Metall, und besonders das Zinn der
Legierung verbrennen und ein anderes Gemisch aus dem Ofen
herauskommen, als in den Ofen hineingeschickt wurde.
Auch muß der Meister das Kommando geben, um in großen
Zwischenräumen weiteres Metall in den Ofen zu bringen. Zu diesem
Zweck werden kleine Metallstücke vor der Ofentür aufgebaut, damit
sie sich anwärmen. Dann wird die Tür aufgezogen und Metall in die
flüssige Glut hineingestoßen. Gegen Ende der Schmelzzeit werden
mit langen Eisenhaken die auf dem glühenden Metall
schwimmenden, fast schneeweiß anzusehenden Schlacken
abgezogen. Schiller erklärt uns in seinem „Lied von der Glocke“, man
tauchte ein Stäbchen ein, um die Güte des Metalls zu prüfen. Heute
wendet man dieses Verfahren nicht mehr an, sondern man achtet
auf das Verhalten des Metalls und der Schlacke. Wenn der „Brei“
noch nicht gut ist, weicht die Schlackenmasse zurück, und der
bloßgelegte flüssige Metallspiegel im Ofen erscheint schwarz. Ist
aber die richtige Temperatur erreicht, dann sieht sich die Oberfläche
der glühenden Masse an wie ein glänzender Spiegel. Nach der Zeit
kann sich der Glockengießer nicht richten, denn manches Mal muß
der Ofen vier oder fünf Stunden länger oder kürzer brennen, bis die
richtige Temperatur erreicht ist. Vier Fuhren Fichtenholz und für
etwa 56000 Mark Rohmaterial waren seit sechs Uhr abend in dem
Ofen verschwunden. 16 Glocken standen in der Gießgrube dicht vor
dem Ofen und 16 andere Glocken in einer benachbarten Grube. Vom
Abflußloch des Ofens aus waren die einzelnen Glocken durch einen
fausttiefen, aus Lehm geformten Kanal miteinander verbunden.
Damit aber das Metall nach und nach von Glocke zu Glocke laufen
mußte, waren die Kanäle vor jeder Glocke durch eine senkrecht
stehende Dachschindel verschlossen.

Rohmaterial zum Glockenguß. (Im Hintergrund Glockenklöppel).

Alle Mann, von der nur durch zeitweisen Schlaf unterbrochenen

dreißigstündigen Arbeitszeit ermüdet, warten auf das Kommando:
„Fertig“. Die Gesellen treten zwischen die Glockenformen und halten
dort die Gießöffnungen der dem Ofen am nächsten stehenden
Glocken durch eiserne Stangen verschlossen, damit das Metall nicht
in mehrere Glocken zugleich gelangen kann. Alle stehen in sichtlicher
innerer Erregung vor den letzten entscheidenden Augenblicken ihrer
mehrwöchigen Arbeit. „Hut ab“ ruft der Meister; alles entblößt den
Kopf. „Und der Herr unser Gott sei uns freundlich und fördere das
Werk unserer Hände.“ So betet Meister Schilling, während er eine
lange Eisenstange mit riesigen, über die ganzen Arme
hinaufreichenden Handschuhen gegen die Öffnung des Ofens hält.
Noch einen Augenblick Stille; dann: „Achtung“ — „Stoßt auf“, mit
einem gewaltigen Ruck hat der Meister den eisernen Zapfen mittels
der Eisenstange in das Innere des Ofens hineingestoßen. Die flüssige
Bronze fließt in einem nur zwei bis drei Finger dicken Strahl ruhig
aus dem Ofen und nimmt ihren Weg in die Öffnung der zunächst
stehenden Glockenform. Aus zwei „Pfeifen“ entweicht die im Innern
der Glockenform befindliche Luft. Ein klein wenig Dampf und ein
gurgelnder Ton ist alles, was man während der kurzen Dauer des
Gusses äußerlich an der Form wahrnehmen kann. Wenn sich die
Form mit flüssigem Metall gefüllt hat, wird die Glut in den beiden
Pfeifen sichtbar und brodelt wohl auch ein wenig aus ihnen heraus.
In diesem Augenblick wird die Schindel zerschlagen, die dem
Glockenmetall den Zugang zur nächsten Form sperrte. So werden
nach und nach alle Formen mit Metall gefüllt. Die 16 ersten Glocken
zu gießen forderte etwa acht Minuten Zeit. Dann wurde der noch
glühende Ofen von neuem mit einigen Geschützen und fertig
abgewogenen Metallblöcken beschickt und zum Guß für die übrigen
16 Glocken geheizt. Die in dem Mauerwerk aufgespeicherte Glut
beförderte das Schmelzen so sehr, daß dieser Guß schon nach
wenigen Stunden erfolgen konnte.
Nach zwei bis drei Stunden wird die Erde aus der Grube
herausgeschaufelt und die Glocke vom Kran emporgezogen. Das
Reinigen und Abfeilen und das Nacharbeiten der Inschriften und
Verzierungen mit dem Meißel vollendet die Glocke.
Meister Schilling hat während seiner langen Tätigkeit 6728
Glocken gegossen. Nun wartet er auf den Frieden, der ihm wieder
sein edles Metall freigibt.
 Quellen-Nachweis.
Der knappe Raum gestattet es nicht, zu jedem einzelnen Artikel
die benutzten Werke anzuführen. Es sei deshalb hier auf die Stellen
verwiesen, die in den meisten Fällen genügend Auskunft geben
können:
F. M. Feldhaus. D i e Te c h n i k d e r V o r z e i t , d e r
g e s c h i c h t l i c h e n Z e i t u n d d e r N a t u r v ö l k e r.
Ein Handbuch für Archäologen und Historiker, Museen und
Sammler, Kunsthändler und Antiquare. Leipzig 1914. 1400
Spalten Text mit 873 Abbildungen.
F. M. Feldhaus. R u h m e s b l ä t t e r d e r Te c h n i k
von den Urerfindungen bis zur
G e g e n w a r t. Leipzig 1910. 631 Seiten mit 231
Abbildungen.
F. M. Feldhaus. L e o n a r d o d a V i n c i , d e r
Te c h n i k e r u n d E r f i n d e r. Jena 1913. 166 Seiten
mit 9 Tafeln und 131 Abbildungen.
Geschichtsblätter für Te c h n i k ,
Industrie und Gewerbe, illustrierte
M o n a t s s c h r i f t. Herausgegeben von Graf v.
Klinckowstroem und F. M. Feldhaus. Berlin, seit 1914.
Monatlich ein Heft.
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