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Accounting in three dimensions: a case for momentum

Accounting in three dimensions: a case for momentum To this day, triple‐entry accounting and momentum accounting are seldom applied. We regret this because of the growing need for more forward‐looking information by management and external stakeholders and the apparent lack of theory and practical solutions. The ever‐increasing pace of the economy incites the need to disclose trends on the microeconomic level of a company. Further to this point, recent developments related to corporate governance, give new imputs to search for the answer to the question if we can improve the reliability and effectiveness of accounting in general, and financial statements in particular. This paper may contribute in to a better understanding of the concept that underpins momentum accounting. We present a notional example concerning the balance sheet ratio: return on equity. This example, so we hope, should encourage practitioners and academics to explore the usability of triple‐entry accounting and momentum accounting as alternative means to provide more forward‐looking information. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Balance Sheet Emerald Publishing

Accounting in three dimensions: a case for momentum

Eric Melse
Balance Sheet , Volume 12 (1): 6 – Feb 1, 2004
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6 pages

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0965-7967
DOI
10.1108/09657960410514661
Publisher site
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Abstract

To this day, triple‐entry accounting and momentum accounting are seldom applied. We regret this because of the growing need for more forward‐looking information by management and external stakeholders and the apparent lack of theory and practical solutions. The ever‐increasing pace of the economy incites the need to disclose trends on the microeconomic level of a company. Further to this point, recent developments related to corporate governance, give new imputs to search for the answer to the question if we can improve the reliability and effectiveness of accounting in general, and financial statements in particular. This paper may contribute in to a better understanding of the concept that underpins momentum accounting. We present a notional example concerning the balance sheet ratio: return on equity. This example, so we hope, should encourage practitioners and academics to explore the usability of triple‐entry accounting and momentum accounting as alternative means to provide more forward‐looking information.

Journal

Balance Sheet – Emerald Publishing

Published: Feb 1, 2004

Keywords: Accounting; Financial analysis; Performance measurement (quality)

References

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    Ijiri, Y.
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    Ijiri, Y.
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