Peter Rintoul, ‘The Treatment in the Accounts of Joint-Stock Companies of Depreciation In Value of Assets Arising from Their Bnployment, and the Duties of an Auditor Relating Thereto’ (1907-8)

The expression “joint-stock companies” is intended to include limited companies incorporated under the Companies Acts and statutory companies incorporated by special Acts of Parliament, and in dealing with this subject, any distinction need not be drawn between these two classes of company. The word “depreciation” signifies the decrease in value arising from many causes, but is often loosely used as referring to decrease in value arising solely from certain of these causes. The principal difficulties which face us in dealing with this depreciation in the Revenue Account arise from the necessity of the preparation of periodical accounts. While it is without doubt that the duty as accountants, in the broad meaning of the word, is to study the phenomena of depreciation from all possible points of view, what in practice most concerns is the duty of an auditor in regard to the amount provided from profits for depreciation or expired capital outlay.