Nineteenth Century Accounting Error.

The article focuses on the occurrence of errors in accounting data in the U.S. and Great Britain. Major problems associated with the application of replacement accounting are discussed. It is also noted that the distinction made between replacements and additions influences profits. Accounting errors may be intertwined if an asset is considered an addition, leaving the depreciation of worn-out equipment to be ignored until the original assets are officially replaced. Nineteenth-century accounting practices are discussed. Evidence of accounting errors conflict with the concept of conservative accounting practices of the period. Evidence suggests that capital consumption costs were neglected in many cases, meaning that profits and assets were likely overstated.