The Double Entry Book Keeping (Deb) System and the Emergence of Ethics and the Spirit of Capitalism (Published)
The purpose of this paper is to cast a new light on the post-Sombartian debate on development of double entry. Sombart (1916) thought that the invention of double-entry bookkeeping was essential to the birth of capitalism. It is known that Max Weber developed the same theme, but to a lesser extent. Epochs after, accounting scholars have debated the idea quite extensively during the 20th century. All these previous works have in common the fact that address the historical question by comparing accounting practices to business practices, some of which are interpreted as capitalist. In this paper, the aim is not to understand the birth of capitalism, but to contribute to understanding of the birth of the concept of capitalism itself from accounting thoughts perceptive. The concept of capitalism came about in the 19th century. At that time, capitalism and a certain kind of double-entry bookkeeping practice that was able to highlight the circuit of capital were inextricably linked. It might be suggested that this historical situation greatly helped the scholars of the period to conceptualize what they called capitalism, and it is easy to show that the notion of capitalism itself is rooted in accounting thoughts. Therefore, the work will present the account of how the concept of capitalism was innovated as example of the influence of accounting thoughts on economic and sociological development. In view therefore, of the eminent position occupied by the concept of capitalism in both past and present intellectual and political debates and current analyses of economic modernity, the fascinating role played by accounting craft in the birth of this concept certainly merits attention.
Things Fall Apart” on the Inattention to Historical Accounting Thought: Is Harmonization of Accounting Advancement A Way Forward (Published)
This study seeks to further advance increasing knowledge of the history of harmonization of accounting advancement in periods earlier than the modern era. The need to identify credible explanations of the principles fundamental to double entry book keeping over time determined by numerous exhibitions of thought have provoked this study. Accounting, as it is practice today evolved gradually over the years, therefore, its development cannot be undermined. Since the inception of trade and other economic activities, ancient civilizations recognized the needs for proper record keeping, members of old civilization employed some rudimentary systems of keeping track of their trading activities between tribes or regions. However, the industrial and technology evolution promoted the needs for accountant to provide advanced financial information for informed economic decision. Then, the double-entry book keeping system (DEBS) was formulated in response to challenges of early century’s commercial activities. Thereafter, conflicts resulting from differences in accounting thought and practice globally have given rise to clamoring for harmonization of accounting practice on the basis of comparability of financial statement. In spite of established world-wide accounting standards by various accounting standard setters, harmonization still remain unsolved, complex, and full of controversy. The study focuses on history of accounting thought starting from when accounting were first discovered as a method of trading and recording to the recent time when it is recognized and treated as a full fledge profession, including the long time diversity that hindered harmonization of financial statement as well as universal accounting practice. Therefore, accounting as a problem-oriented discipline need to develop globally accepted accounting standards capable of promoting comparability of financial statements and universal accounting practice.