Vol. XIX.-Manual for Accountants, Vol. I, by C. Eddis. The book gives the Intermediate Examinations, set at Canadian C. A. examinations, dealing with bookkeeping, storeholders', partners' and executors' accounts, joint stock companies, auditing, insolvencies, etc. Vol. XX.-Encyclopedia of Accounting, edited by George Lisle (8 volumes). These books are valuable to the beginner for the definitions and forms that are in use in accounting, as given here. They also contain numerous articles on accounting. Amazing Stroke of Generalship. It is reported from New York that the Insurance Commissioners representing eleven States have adopted a resolution advocating that insurance companies shall, in their annual statements this year, value their security holdings on the basis of prices at December 31, 1906, on the ground that present panic prices do not represent the actual values, and that otherwise many companies will be obliged to acknowledge severe impairments of capital and surplus funds on account of the enormous decline in prices. America has, within recent years, surprised us in matters relating to insurance, but this advocacy of the issue of false balancesheets is an amazing stroke of generalship. As securities of the first class -Government and State bonds, railroad mortgage bonds, and the likehave not depreciated to any great extent, a pertinent question would be: To what extent must the companies be invested in highly speculative undertakings that they fear to disclose their figures?-London Accountants' Magazine. Accountancy in Holland. By G. P. J. HOGEWEG, Editor of the Dutch Magazine, "Accountancy." You asked me some time ago to write a short article on "Accountancy in Holland," and I am glad herewith to comply with your request and to give you some information, from which you will gather that we are not yet at the very end of our wishes, and that much remains to be done to give accountancy its proper place in our commerce and industry. 66 Though naturally for many years bookkeepers have now and then performed the work of an accountant on order of their principals or in their free time during evening hours, the name accountant" and the business of an accountant began to be known in our country and to be studied with care only after the formation of the first society of accountants, named Het Nederlandsch Instituut van Accountants," fourteen years ago. The object of this society was to promote the use of accountants as auditors, liquidators, and administrative experts, and further to try to have the profession regulated by law as regards the cases in which the aid of accountants would be imperatively prescribed, as also as regards the rights and duties of the accountants. Between the date of the formation of the Instituut and to-day, other accountants' societies have been formed out of and by those who for some reason or another would not comply with the rules of the Instituut or in other cases could not comply with these rules. All of these societies were formed on nearly the same lines as the Instituut, and named in their regulations nearly the same objects as their elder sister. Let us see how far they have succeeded in attaining their end. As to the first part (promote the use of accountants) their efforts have had much success. More and more the services of accountants are being used for the regular auditing of administrations as well as for special examinations in cases of reconstructions, formation of new companies, entry or withdrawal of partners or as experts in case of bankruptcy or voluntary liquidations. On the other hand, there are still quite a large number of business men who do not appreciate the very important services of accountants in various businesses. There remains still very much to be done before the societies of accountants can omit from their by-laws the paragraph relating to the propaganda for the use of accountants. At the same time I am pleased to say that we may report very good progress in this matter. The periodicals on the subject, and especially the monthly paper "Accountancy," which is independent of any of the societies, assist effectually to give the public the necessary insight into the business of an accountant and the value of his services to the public. As to the second end which the societies of accountants have in view, viz., the legal regulation of the profession, until now it has not been possible to obtain this. In the Dutch laws the accountant is not yet mentioned. Accountancy is still a free profession and every office boy is allowed to hold himself out as an accountant, if he cares to do so. There are no rules in our laws relating to the audit of public companies, nor are these concerns obliged to publish annual accounts and reports, though most of them do so. I regret very much to acknowledge that our country is so much behind many other countries in this regard, and that even various Chambers of Commerce replied in the negative to the question put to them by one of the ministers a couple of years ago, whether they were of opinion that legal regulation of the accountants' profession was necessary. On the other hand, you will conclude from the above that this question receives attention from our legislators also, so that we may entertain the hope that ere long a bill on this subject will reach the Chambers. Our legislators have, however, so much pressing work that it is better not to be too optimistic as to this. In order to give you an idea of the extension which accountancy has obtained in our country I give you herewith a list of the various accountants' societies with the number of their members: 22 members Nederlandsch Instituut van Accountants, about 90 members The last mentioned society has been formed only a couple of months ago by members of the Instituut who were dissatisfied with the way in which matters were going on and who now are trying to realize their ideals outside the Instituut, which they could not do as members of this society. Nevertheless many accountants regret that further separation has taken place where concord is so necessary to attain the aim-legal regulation of the profession. In considering the above list you must not forget that Holland is only a small country and that there are still many so-called accountants who are not members of any of the societies. Special care is being paid to the examinations which candidate members have to pass before they can be nominated. Only under very special circumstances is it possible to become a member of one of the principal societies without passing the examinations. The accountant students form as a separate group part of the societies. They are registered in the books of the societies as "assistants," and only those so registered are allowed to join in the examinations. The assistants of the "Instituut" and of the "Nederlandsche Accountants Vereeniging" have formed independent student societies in Amsterdam and Rotterdam in which lectures are read and debating evenings organized in the same way as we see that the students do on your side. The education of future accountants is one of the principal interests to which the councils of the societies have to attend. They have therefore published detailed programs of the examinations, and the courses held under the auspices of these councils are conducted by the most prominent men that can be had for this important work. Our advanced schools give enough general knowledge to allow the students to follow successfully the special courses necessary for future accountants. All of these courses are held during evening hours, as not one of our students would be in a position to follow day courses, on account of their daily work. So far none of the societies has, however, required from the candidates proofs of practical experience in an accountant's office before admitting them to the final examination. Our accountants are nearly all educated in commerce and in the offices of the banks, as the special accountants' offices where assistants are regularly engaged have been growing in number and import ance only during the last two years. Many of the members of the societies perform their accountancy work during evening hours, and on the days they can spare from their other duties. This fact, lack of proof of practical experience, is, as we nearly all admit, not the ideal position, but with the questions put at the examinations we try to inquire after the practical knowledge of the candidates as well as after their theoretical knowledge. About these examinations I hope to write you another time. The only point I have in view now is to give you an idea of the situation of the profession in Holland. I feel quite sure that much can be done to improve this situation, but I feel just as sure that the average true accountant of Holland does not stand behind his colleagues in England and America as to practical experience and knowledge. Methods of bookkeeping conform to a high standard in many large concerns, and we daily improve them where this point is not yet reached. Hollanders have always liked their freedom and have an aversion to legal prescriptions where they are not absolutely necessary, and this accounts, perhaps, partly, for the fact that our profession is not yet regulated by law. But if this regulation comes it will only be on such lines that the public is protected against the acts of incompetent persons who would try to hold themselves out as accountants. |