ABSTRACT
As we understand our correspondent “Anon,” whose letter under the above heading we reproduced last week, his contention is that the question of Balance Sheet values, which Mr. Carter, in agreement with ourselves, has described as a difficult and an elusive one, is really perfectly straightforward to the man who has thoroughly mastered the principles of bookkeeping and accountancy. It seems to us, moreover, that our correspondent reads a good deal more into these decisions than is really there. We endeavoured to initiate a principle on this point which we thought could be abundantly justified in practice, although it would really result in Balance Sheet values coinciding with realizable values. If our correspondent desires us to accept his assertion that foreseen losses by way of obsolescence need not be charged against revenue before arriving at divisible profits, he must expect to be called upon to produce his arguments before the statement can be accepted unconditionally.
