Opinion ID: 1506485
Heading Depth: 1
Heading Rank: 2

Heading: Entry of Deferred Expenses in all the Financial Statements

Text: White entered as an asset in all three of his statements outlays of the City Bank, all of whose shares were held by the Bankers Company, for salaries, telephone, stationery and other such charges. One, Hillis, an official of the bank, had refused to do this until White and Gaffeney persuaded him. White added an explanation of this item in all the statements, saying that they were for promotion expenses, but without analyzing them. The City Bank had been organized in 1933, and it is somewhat questionable whether it ought to be credited with promotion expenses as late as 1936; but, that aside, a jury might have found it bad accountancy to include its promotion expenses as an asset of its shareholder or to consider the expenses which were in fact so described as promotion expenses at all.