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income statement was, at a minimum, equally important as the
balance sheet.^5
The Institute changed its policy of appointing ad
hoc committees to attempt to resolve various financial
reporting deficiencies. It appointed the Committee on
Accounting Procedure in 1938. It decided to select the
Committee on Terminology members from the Committee on
Accounting Procedure starting in 1939.36 During the
period 1939-1959, the two committees issued 51 Accounting
Research Bulletins and 4 Accounting Terminology Bulletins.37
A primary result on financial reporting was the completion
of the shift of emphasis away from the balance sheet to the
income statement.^8 A principal characteristic of the
influence of the Accounting Research and Terminology Bulle­
tins on financial reporting was that the recommendations
contained therein rested on their general acceptability
rather than being stated requirements of financial report-
ing. * Characteristic of the Institute pronouncements was
35. Ibid., p. 4.
36. Official Releases, "History of the Accounting
Procedure Committee—from the Final Report," The Journal of
Accountancy, 108:70, November, 1959; and Committee on
Accounting Procedure and Committee on Terminology, op. cit.,
p. 7 of Accounting Terminology Bulletins section.
37. Committee on Accounting Procedure and Committee
on Terminology, op. cit., p. 2.
38. Ibid., p. 7.
39. Ibid., p. 9.
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