ABSTRACT
The advent of the world war and the resulting appreciation of values (or the decline of the purchasing value of the dollar, if we prefer) to such heights as were not thought of ten years ago, coupled with the high income-tax laws, have brushed aside the old and much respected orthodox accounting rule that fixed assets should not be valued in excess of cost. It is interesting, however, to contrast the old rule with the new, as laid down by those whom we recognize as authorities. It seems to be apparent that the proper treatment in accounts of appreciation of fixed assets will be a matter to be dealt with by accountants for some years to come. Regardless of our past convictions, we must acknowledge appreciation and find a prominent place in our procedure for its treatment.
