The syntax of the accounting language: a first step

Abstract

ABSTRACTWe review and interpret two propositions published by Ellerman [2014. On double-entry bookkeeping: the mathematical treatment. Accounting Education, 23(5), 483–501] in this journal. The paper builds on this contribution with the view of reconciling the two, apparently dichotomous, perspectives of accounting measurement: the stock and the flow approaches to income. It claims that T-accounts have an underlying algebraic structure suitable for approaching measurement from either or both perspectives. Accountants’ preferences for stocks or flows can be framed in ways which are mutually consistent. This is a first step in addressing this consistency issue. We avoid the difficult mathematics of abstract algebra by applying the concept of syntax to accounting numbers such that the accounting procedure qualifies as a formal language to convey meaning. We are addressing those educators responsible for designing accounting degree programmes, for whom grasping the issue of syntax is important when offering cross-disciplinary options to accounting students with interest in, or need for, engaging with information science.