A physical theory of accounting: particular study issues

Abstract

The subject matter of the paper is related to theoretical and methodological basics of accounting as a field of study. Over many centuries, the laws of economics have been examined dialectically by scholars. In the course of establishing a study of economics, there have been a number of orthodox scholarly traditions, united by a common idea of †development and patterns of performance. For a long time, economists from different countries worked hard in order to understand the essence of economic and social processes, derive and explain economic laws using knowledge and experience acquired by people.The aim of the article is to explore in what way the research methods which are generally applied in natural sciences can be deployed for economic studies, and in particular for describing the nature of accounting. The key objectives of the paper are to develop a methodology for applying methods of physics to the study of economics, and to identify the link between conceptual framework of accounting and physics. In the paper, the following general and specific research methods are used: modeling, algorithmization, formalization, generalization, comparison, analogy, system approach.It is justified that the laws of physics can be prospectively applied for explaining economic phenomena and processes, particularly in accounting, which is viewed as an important source of information. Hence, the correlation between accounting and the field of physics and mathematics is determined through: the use of formal description of accounting items; the consideration in terms of seeing accounting as a specific knowledge field; the interpretation of accounting methods (in particular, the balance method) through algorithmization and parallelism with the laws of physics (for example, the energy conservation principle); the establishment of an information hierarchy of the current state and behavior of assets, capital and liabilities of the enterprise; the examination of balances by means of appropriate algorithmization and justification of advisability of developing a physical nature of accounting theory.It is pointed out, that there is a difference between the balance method and the energy conservation principle (the energy in an enclosed system is constant, which makes it impossible to observe the process of arrival or creation of new energy in enclosed space). The conclusion is based on the positive influence of econophysics on the economy’s performance, and the advisability of its application for a more accurate study of economic processes, and a more qualitative economic analysis of enterprise performance.