Double-entry Method Research Articles

Markets and the Spontaneous Emergence of Double-Entry Accounting: A Short Essay

SYNOPSIS This brief essay advances the thesis that double-entry accounting is due to markets. It is the natural method of recording market transactions, which are exchanges and therefore have two sides to record: what is given up and what is received in exchange. There had been comparatively little market activity in the manorial system that prevailed in Europe during most of the Middle Ages. When peasants and serfs living on the manors had delivered money, grain, or services to their landlords, nothing had been given up coincidentally in exchange, so double-entry accounting would not have been appropriate. Consistent with the present thesis, the double-entry method did not emerge until the thirteenth century, in northern Italy, after goods and financial markets had expanded substantially and a merchant class had arisen. Double-entry accounting therefore has survived for centuries because active markets have survived for centuries. JEL Classifications: B15; D23; D83; M40; M41.

ВНЕБАЛАНСОВЫЙ УЧЕТ ИЗМЕНЕНИЙ (ТРАНСФОРМАЦИИ) КАПИТАЛОВ В ПРОЦЕССАХ СОЗДАНИЯ СТОИМОСТИ

The efficient use of resources in the agricultural economy and a significant increase in agricultural production volumes have ensured a more sustainable development of all activities of agricultural organizations. Therefore, there is an objective need for the formation of integrated reporting in these organizations for the purpose of presenting to users reliable and complete not only financial information, but also non-financial information, which in integration represents a holistic picture of the combination, relationship, interdependence between factors affecting the organization’s ability to create value in the form of funds and items of labor, current costs and capital investments. The main source of financing for value creation for the reporting period and for the long term is financial capital, which changes over time, that is, increases, decreases or transforms into various types of capital: reproductive and intellectual capital; human capital; social capital; natural-ecological capital. In this regard, the objective formation and disclosure of information about all changes in capital associated with the creation of value in agricultural organizations becomes an urgent task. The generation and disclosure of such information is currently quite difficult in agricultural organizations due to the lack of an appropriate information base. The proposed digital economic information system, including subsystems for accounting, analysis, planning and verification of information, makes it possible to fundamentally change the formation of integrated reporting indicators in the direction of increasing the degree of their reliability, comparability, objectivity, reliability and usefulness for users to make scientifically based economic decisions. The study substantiates the methodology for maintaining off-balance sheet accounting of the presence and movement of capital in dual-use accounts, in which transactions are recorded using the double entry method and the simple entry method. All changes in capital in these accounts are reflected and taken into account when forming the economic, social and environmental infrastructure of the organization, as well as when disposing of (writing off) various types of funds from these areas of activity. In addition, the information from these accounts allows, in integrated reporting, to draw up a special form of balance of resources and capital, used to assess the efficiency of resource use in the economic, social and environmental spheres of the organization’s activities.

BLOCKCHAIN TECHNOLOGY IN ACCOUNTING: PROSPECTS AND CONSEQUENCES OF IMPLEMENTATION

In the article was substantiated the essence of blockchain technology, examines its role, significance and directions of use in various spheres of public life. It has been established that the reason for the widespread use of blockchain to optimize business processes in various fields of activity lies in the advantages of this innovative technology, in particular, decentralization, transparency and security of data storage through the use of cryptographic information security mechanisms. At the same time, it was found that blockchain technology, despite its advantages, has disadvantages associated with the high network energy consumption, insufficient data storage capacity, scalability problems, lack of standardization and legal regulation of its implementation in various sectors of the economy. It is substantiated that one of the most acceptable business processes for using blockchain is accounting, since this technology is based on the double entry method, known in accounting practice, in which each transaction is recorded twice in the same amount for each of the parties to the transaction. It was found that the use of blockchain technology leads to the emergence of the so-called triple-entry accounting method. It is substantiated that the introduction of blockchain technology into accounting practice will create the prerequisites for optimizing a number of routine accounting processes, save resources on accounting, ensure accuracy, transparency and security of data, reduce the risk of distortion of accounting information and will build trust in the accounting institution. Taking into account the functionality of blockchain technology, possible directions for its use in the field of accounting are proposed, in particular for maintaining operational accounting in real time, accounting for accounts payable and receivable, accounting for the movement of the assets within an enterprise, carrying out a multilateral audit of transactions by all participants with access to blockchain networks.

Public sector accounting and fiscal policy in Brazil (1906–1931): foreign credit negotiation and political use

ABSTRACT During the First Republic (1889–1930), also known as the Old Republic, and the Provisional Government of Getúlio Vargas (1930–1934), Brazilian public sector accounting institutions underwent a phase of accelerated reforms. This study examines how budgetary imbalances, political interference in the ways of calculating the budget results, and foreign loan negotiations affected these reforms. We analyse primary and secondary sources to establish the link between the reforms of accounting institutions, budgetary policy, and foreign loan negotiations. The analysis is qualitative and instrumentally employs the concepts of institutions and public accountability. We utilise quantitative data to provide a picture of the Brazilian fiscal context. The collected evidence indicates that the financing of coffee stocks gave rise to the reinforcement of the double-entry bookkeeping method in the State of São Paulo in 1906. It also shows that the federal fiscal imbalances required foreign financing and that the loan negotiations induced changes in the Treasury’s accounting in 1914, in the regulation of the Central Accounting Office in 1924, and in the Accounting Code in 1931. We argue that the search for calculative legitimacy for political programmes led to interference in the Central Accounting Office in 1927 and 1931, which affected the comparability of budgetary results.

ІСТОРИЧНІ АСПЕКТИ ФОРМУВАННЯ БУХГАЛТЕРСЬКОГО ОБЛІКУ ЯК НАУКИ

The article reveals the historical aspects of the formation of accounting as a science. The periodization of the development of accounting by stages is investigated. The formation of accounting opinion is revealed. The generalized classification of accounting accounts is carried out, based on their historical development. The preconditions of double entry occurrence and the order of its application are investigated. The decisive moment was the publication in 1494 of a book by the great Italian mathematician Luca Pacioli (1445-1517). "The sum of arithmetic, geometry, the doctrine of proportions and relations", the treatise of which "Treatise on Accounts and Records", contains a detailed description of the application of double-entry bookkeeping to the practice of a commercial enterprise. The emergence and development of accounting has become a logical and irreversible step in the historical development of human civilization. Over time, accounting is undergoing constant evolutionary changes, at each historical stage of development of society are expanding. The emergence of accounting is due to the very needs of life - the need to know the exact amount of property on the farm, and be able to determine the debt. History of the origin and development of accounting in Italy. The history of the science of accounting originates in Italy. It was here that the method of double entry arose and became widespread: in 1494, the Franciscan mathematician Luca Pacioli published a treatise, The Sum of Arithmetic, which marked the beginning of accounting. However, it was the forms of science that accounting acquired only after 1861, when three major schools of accounting emerged in Italy, namely the Lombard, the Tuscan, and the Venetian. The relevance of the research topic to analyze the stages of development of accounting. Only by researching the history of accounting can we understand the mistakes and shortcomings that were previously present in the organization and maintenance of accounting and exist to this day. The history of development, the formation of accounting makes it possible to realize that the source of the formation of economic accounting have existed for a long time. Elementary accounting is conducted by all owners who have a farm.

From cameral system to the double-entry method

The paper aims to analyse the role of accounting as a tool of government action, considering the function of the relationships established by the Santissima Annunziata Hospital in Chieti. Governmentality, intended by Michel Foucault as “governmental rationality”, attributes power and control to those who exercise it even though power is not to be understood as a steady property, but rather as a product of strategic conflicts between subjects. “Power”, however, had to enable the rulers to prepare actions oriented to social welfare and happiness (Rose and Miller, 1992: 174). The accounting of the Hospital of Chieti, which establishes power relations aimed at influencing internal governance, moves towards perspective. The Hospital, managed by different power groups, represented an example of alternation of powers. This charitable institution was run by religious brotherhoods, submitted to the ecclesiastical power and then to public leaders, who were, in their turn, subject to the power of the state. The paper analyses the accounting system used by these two kinds of power that administered the hospital as well as the ways to achieve social control over the people who were considered internal and supportive to each reference category. The study also uses primary sources, documents from the Chieti State Archives for the foundation and organization of the Santissima Annunziata Hospital in Chieti, and accounting books to verify the assistance activity, considering the application of two different accounting systems, from cameral system to the double-entry method.

Michele Da Colle’s account books (1462-63): the first example of double entry in Portugal?

The title of this article puts forward the research question: can the books of the merchant Michele Da Colle be considered as the oldest example of the use of the double entry method in Portugal? Michele was a Tuscan merchant and agent to the Pisan Salviati-Da Colle firm, established in Lisbon as of the second half of the fifteenth century. The first years of his business activity in Portugal are recorded in two account books that are kept today at the Salviati Archive, in the Scuola Normale Superiore of Pisa. To answer the research question, this article thoroughly examines the characteristics of these documents. The aim is to determine if these records follow the general principles of double entry bookkeeping proposed by different scholars. This investigation thus seeks to contribute to the debate on the introduction of double entry in Portugal via Italian influence. The preliminary analysis of these books shows that we are, indeed, in the presence of double entry records. The example does contain formal imperfections, but it has strong similarities with the context of Tuscan accounting of the time, which can arguably mean that it represents a stage of evolution and development of the double entry method. Since we do not have any other examples, Michele Da Colle’s account books can be considered the earliest records in double entry in Portugal. Evidence also suggests that Italian merchants exerted influence on Portuguese merchants for the adoption of this method, although it didn’t last in the centuries to come. This explains why several Portuguese works on arithmetic from the sixteenth century fail to mention the double entry system, which was only regularly applied in Portugal as of the mid-eighteenth century.

Reflexões sobre as bases filosóficas dos princípios contábeis

Desde a antiguidade a filosofia tem se valido do estudo do pensamento, da razão, da verdade, da ética e do conhecimento que permeiam os ramos da ciência. A Teoria da Contabilidade, quando estudada sob a abordagem ética, deveria apresentar-se como justa e não enviesada para todos os interessados. Os princípios no âmbito da Teoria da Contabilidade não são uniformes, sendo evidenciados nas estruturas conceituais e normas dos países segundo sua cultura, costumes, valores éticos e sistemas jurídicos. Assim, tomando por partida as raízes italianas do método das partidas dobradas (berço da contabilidade), analisa-se as bases filosóficas dos princípios contábeis no Brasil e na França (berço do Iluminismo). Por meio de um ensaio teórico de caráter crítico-argumentativo revela-se que por trás dos conceitos definidos nos princípios contábeis encontram-se fundamentações teórico-filosóficas. Conclui-se que os princípios contábeis, em sua concepção, coadunam-se aos pressupostos filosóficos da ética, da moral e da busca pela verdade.

GENESIS OF THE ACCOUNTING SYSTEM OF SMALL ENTERPRISES IN UKRAINE

The article presents the historical aspects and adaptation results of accounting records of small business entities. The study examined the features of accounting and financial reporting in small enterprises, as well as regulatory documents that govern their activities. The main registers with the help of which accounting is carried out at small enterprises are considered. The features of maintaining a simple and simplified form of accounting without using the chart of accounts and the double entry method for preparing financial statements and calculating the taxable item are presented. Papers of leading scientists on the formation of the accounting system of small enterprises are the theoretical and methodological basis of the study as well as legislative and regulatory documents governing the accounting system of a small enterprise. In the research process, a bibliographic method was used. The historical stages of the formation of the accounting system of small enterprises are investigated. The essence of the simplified system of accounting and reporting, its difference from the simplified accounting of income and expensesis determined. Prospects for further research will be aimed at improving the regulatory framework for the accounting system of small enterprises.

Double entry method for the verification of data a chromatography data system receives

Abstract. The importance of software validation increases since the need for high usability and suitability of software applications grows. In order to reduce costs and manage risk factors, more and more recommendations and rules have been established. In the field of pharmacy the vendors of so-called chromatography data systems (CDSs) had to implement the guidelines of the Code of Federal Regulations Title 21 (CFR 21) during the last few years in order to fulfill the increasing requirements. The CFR 21 part 11 deals with electronic records and signatures. This part is binding for each company in the regulated environment that wishes to create, edit and sign electronic information instead of printing them on paper. Subsection CFR 21 part 11.10(h) explains how to perform an input check for manual user entries as well as for data that will be collected from an external device. In this article we present an approach performing the double entry method on data provided by the hardware instrument in order to investigate possible influences on the raw data by the handling CDS. A software tool has been written which allows us to communicate with a high-performance liquid chromatography (HPLC) detector and acquire data from it. The communication is completely independent of a CDS which is started separately and connected to the same system. Using this configuration we made a parallel data acquisition of two instances at the same time possible. Two CDSs have been tested and for at least one of them it has been shown that a comparison of the acquired data can be done as with the double entry method for the data verification. For the second CDS we checked whether it would be applicable after a few modifications. The given approach could be either used for a live data verification of produced raw data or as a single test during a software operational qualification to verify the data acquisition functionality of the software.

Impact of the transition shock and work environment on turnover intention among new nurses

Objective To explore the impact of transition shock and work environment on turnover intention of new nurses, and to provide evidence for nursing management and intervention of new nurses. Methods From June to November 2016, 500 new nurses from one classⅢ grade A hospital of Heilongjiang province were selected as the research subject. A cross-sectional survey was used to investigate 500 new nurses with Turnover Intention Scale, Chinese Version of Perceived Nursing Work Environment Scale and new nurses' Transition Impact Rating Scale. The database was established by the method of double entry, and the data were analyzed with SPSS 20.0 software. Results The total score of turnover intention of 500 new nurses was (18.25±2.64) . The results of single factor analysis showed that there were significant differences in the scores of turnover intention of new nurses in different departments (P<0.05) ; The correlation analysis showed that social culture and development aspect, physical aspect were positively related to the turnover intention of new nurses (r=0.870, 0.812; P<0.001) . Human and material resources were negatively related to the turnover intention of new nurses in the perception of nursing work environment (P<0.001) . Multivariate Logistic regression analysis showed that in the transformation impact of new nurses, human and material resources in social culture and development, physical and working environment were the main factors of turnover intention of new nurses. Conclusions The turnover intention of new nurses is relatively high. Nursing managers can reduce the turnover rate of new nurses by improving the new nurses' transition shock and improving their work environment intervention, so as to reduce the job stress of new nurses. Key words: Nurses; Transition shock; Work environment; Turnover intention

Combination of the Methods of symmetrical components and Double Entry to Increase the Reliability of Digital Differential Relay Protection

The method of symmetrical components is one of the main methods used to calculate asymmetric modes in electric power systems. To increase the reliability of digital differential relay protection in case of asymmetric faults, a combination of symmetric components and double entry methods is proposed. It is supposed to compile balance equations, to apply the theory of graphs and matrices, and the estimation of reliability indicators is carried out on the basis of the method of Markov chains. The obtained results allow to make a conclusion about the prospects of implementing a differential protection using the method of double entry and symmetrical components in the electrical networks.

Централизованная дифференциальная защита цифровой подстанции с применением метода двойной записи

Централизованная дифференциальная защита цифровой подстанции с применением метода двойной записи

Increase the reliability of operation of differential protection due to the use of the method of double entry

Double entry it is method of registration of economic operations accounting, applied to detect errors. The application of the method in differential protection leads to increased reliability of technical solutions. By providing redundant processing of information about currents measured at the ends of the protected object, and is formed in a special matrix that implements the reliable operation of the differential protection, eliminating its excessive action when damaged the current transformers or communication lines. To assess the reliability of protection used the method of Markov chains. The obtained results allow to make a conclusion about the prospects of implementing a differential protection using the method of double entry in the electrical networks.

Intimate partner violence among college students without disabilities and college students with disabilities: An exploratory study

Aims: The purpose of this exploratory research study was to examine the gender differences and role of disability among college students experienced intimate partner violence. The research project sought to address two questions: (1) are there gender differences? and (2) are there differences between people with disabilities and people without disabilities? Setting and Design: A large university in the Midwest, United States of America. A quantitative research design was used. Materials and Methods: This research project used a quantitative research design using a packet consisting of abuse screening surveys: Abuse Assessment Screen-Disability (AAS-D) and Revised Conflict Tactics Scale (CTS2). Statistical analysis used: The quantitative surveys were analyzed using IBM SPSS version 22.0. Data input used a double entry method where the investigator entered the data into one SPSS sheet, an assistant entered the data into a separate SPSS sheet, and then the sheets were merged to check for discrepancies. The hypotheses were addressed using inferential statistics, such as Likelihood Ratio. Results: The results of this study indicate that there were no statistical differences between the rates at which men and women experience abuse. These results are not similar to previous literature. Other findings of this study indicate that people with disabilities experience similar rates of abuse as people without disabilities. These findings are similar to previous literature. Conclusions: Due to the small number of participants with disabilities, the statistical findings showed trends. A larger scale study would need to be conducted to draw any conclusions statistically. These trends should provide a shift in society and its views on who is affected by intimate partner violence and ensure everyone who is experiencing abuse has options to leave the relationship and has resources available and accessible to them.

The reckoning: financial accountability and the rise and fall of nations

Whether building a road or fighting a war, leaders from ancient Mesopotamia to the present have relied on financial accounting to track their state's assets and guide its policies. Basic accounting tools such as auditing and double-entry bookkeeping form the basis of modern capitalism and the nation-state. Yet our appreciation for accounting and its formative role throughout history remains minimal at best--and we remain ignorant at our peril. The 2008 financial crisis is only the most recent example of how poor or risky practices can shake, and even bring down, entire societies. In The Reckoning, historian and MacArthur Genius Award-winner Jacob Soll presents a sweeping history of accounting, drawing on a wealth of examples from over a millennia of human history to reveal how accounting has shaped kingdoms, empires, and entire civilizations. The Medici family of 15th century Florence used the double-entry method to win the loyalty of their clients, but eventually began to misrepresent their accounts, ultimately contributing to the economic decline of the Florentine state itself. In the 17th and 18th centuries, European rulers shunned honest accounting, understanding that accurate bookkeeping would constrain their spending and throw their legitimacy into question. And in fact, when King Louis XVI's director of finances published the crown's accounts in 1781, his revelations provoked a public outcry that helped to fuel the French Revolution. When transparent accounting finally took hold in the 19th Century, the practice helped England establish a global empire. But both inept and willfully misused accounting persist, as the catastrophic Stock Market Crash of 1929 and the Great Recession of 2008 have made all too clear. A masterwork of economic and political history, and a radically new perspective on the recent past, The Reckoning compels us to see how accounting is an essential instrument of great institutions and nations--and one that, in our increasingly transparent and interconnected world, has never been more vital.

On Double-Entry Bookkeeping: The Mathematical Treatment

Double-entry bookkeeping (DEB) implicitly uses a specific mathematical construction, the group of differences using pairs of unsigned numbers (T-accounts). That construction was only formulated abstractly in mathematics in the 19th century — even though DEB had been used in the business world for over five centuries. Yet the connection between DEB and the group of differences (here called the Pacioli group) is still largely unknown both in mathematics and accounting. The precise mathematical treatment of DEB allows clarity on certain conceptual questions and it immediately yields the generalization of the double-entry method to multi-dimensional vectors typically representing the different types of property involved in an enterprise or household.

On Double-Entry Bookkeeping: The Mathematical Treatment

Double-entry bookkeeping (DEB) implicitly uses a specific mathematical construction, the group of differences using pairs of unsigned numbers (‘T-accounts’). That construction was only formulated abstractly in mathematics in the nineteenth century, even though DEB had been used in the business world for over five centuries. Yet the connection between DEB and the group of differences (here called the ‘Pacioli group’) is still largely unknown both in mathematics and accounting. The precise mathematical treatment of DEB allows clarity on certain conceptual questions and it immediately yields the generalization of the double-entry method to multi-dimensional vectors typically representing the different types of property involved in an enterprise or household.

The development of accounting as a scientific discipline in Turkey

The aim of this study is to investigate the development of accounting as a scientific discipline in Turkey. In the Ottoman State (Turkey has historically deep-rooted ties), the accounting system developed within the context of the importance attributed to personal law, emanet and zakat. Accounting in the private sector did not develop, double-entry bookkeeping method was only introduced in 1879, and governmental accounting was based on stairs method. The development of accounting as a scientific discipline in Turkey in the light of the developments in the economic system, political, legal, educational, taxing and occupational activity domains, can be divided into three periods: the periods of 1923–1950, 1950–1985, and 1985 and later. It can be summarised that the development of accounting in Turkey, as education, practice or scientific discipline, has been heavily influenced by the western countries (successively French, Germany, and the UK-USA) as a result of the economic and political ties over the past two centuries. After 1980 when Turkish economy was opened to the international markets and when accounting adapted itself to this, the structure and development of accounting started to be shaped not by local developments but by international developments.

Korean Double-Entry Merchant Accounts from Kaesong City (1786-1892)

Until recently we have had no direct evidence of double-entry accounting in Korea before the opening of the country in 1876 and little information on commercial history. However, using heretofore inaccessible accounts for the period 1786 to 1892 preserved in North and South Korea, we can now demonstrate the existence of a double-entry method in the pre-open ports period. The accounts were kept by the merchants of Kaesong, who traded cotton and rice, provided banking services, and invested in ginseng production.