The Time Factor in the Account Books of the Soranzo Fraterna (Venice 1406—1434)

Abstract

The paper considers the hypothesis proposed in the literature that the emergence in the 13th — 14th centuries of a new temporal conception defined by Jacques Le Goff as “the merchant’s time” played a significant role in the evolution of accounting in Central and Northern Italy. In order to lay the ground for research on this topic, the author identifies some of the ways and means by which the impact of the time factor could manifest itself in the ledgers of late medieval firms, for instance, the dating of transactions, the recognition of revenue and expense on either accrual or cash basis, various techniques employed to conceal interest on loans (i. e., the illicit “selling of time”), depreciation and amortization methods, the rhythm of business activity and the pace of economic life, capital and merchandise turnover etc. Issues related to the dating of operations are then explored through the example of the Venetian account book that is commonly known as the libro real nuovo of the Soranzo fraterna (1406—1434) and was compiled from numerous ledgers and financial documents to be presented in evidence during a litigation in the court of the giudici di petizion. About 10 % of entries in this manuscript remain undated, partly because the forensic accountant who drew it up was not always able to establish the chronology of long-past business dealings, but also because he opted to leave blank spaces in the new entries he made rather than to backdate them. On the whole, the study of the libro real nuovo reveals that the 15th-century Venetian merchants were fully cognizant of the economic value of time, and in their practice, the date of a business transaction formed an integral part of an accounting entry and supported the authenticity of the latter for legal purposes.