Talk:Eugen Schmalenbach

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I think there is an error in attributing Eugen Schmalenbach the concept of "Bund". The concept of Bund was mostly developed by his brother Hermann Schmalenbach, philosopher. The concept of “Bund” is shortly presented in the German wiki page of "Hermann Schmalenbach". I suggest therefore moving the corresponding paragraph to the wiki page of "Hermann Schmalenbach".

Eugen Schmalenbach was mostly involved in accounting and economics and not in sociology. He counts among the "three S"(Simon, Schmalenbach and Schmidt) who were the 3 German academics who during the first half of the XXth century contributed the most in elaborating a balance sheet based on practical management principles rather than on legal or economic systems. In particular Schmalenbach considered that the valuation of most balance sheet items (plants and equipments, stakes in other companies) should be submitted to the subjective appreciation of their respective entrepreneur instead of being submitted to an objective "market valuation". Accounting principles should display a limited list of valuation methodologies among which the entrepreneur would pick-up the ones that best fits to his purposes under the control of a chartered accountant. According to Schmalenbach, leaving the entrepreneur the possibility to choose among various valuation methodologies allows the balance sheet to better fit with the purpose of the company, in particular as concerns industrial companies which need to be evaluated in a long run perspective. In this respect, Schmalenbach was opposed to most market based valuation criteria (i.e. the fair value principle later developed by Chambers) which he considered would lead to the eventual winding up of the company.

Hope that it helps.