TABLE OF CONTENTS In 1494, Italian mathematician, scholar, and philosopher Fra Luca Pacioli published the first account of a new method of bookkeeping in his book Summma de Arithmetica, Geometria: Proportioni et Proportionalita. Pacioli, a colleague of Leonardo da Vinci, never claimed to have invented double-entry bookkeeping; he simply detailed its use and structure. The system of book keeping underpins the system of accounting, finance, and economics that is used by practically all organizations around the world today.
Nearly 510 years later another mathematician, scholar, and philosopher, Dr. Ken Standfield, published a completely new form of measurement and reporting system that can account for intangibles and link those accounts to financial changes in monetary value. Regarded as the holy grail of management science, the consistent valuation of intangibles has eluded the world for hundreds of years.
Conventional bookkeepers record business transactions and conventional accountants know these recording techniques, but specialize in creating and interpreting financial statements. Accountants use their skills to forecast, report, analyze, and interpret, where as bookkeepers use their skills to record financial information. Accountants use accounting systems to produce information that is:
Relevant to making informed and high-quality business decisions
Timely and current so that its value is maximized
Verifiable and therefore free of bias
Comparable over different time periods
All conventional accounting systems are based on accounting standards and accounting conventions. The 10 fundamental conventional accounting assumptions are as follows:
Entity assumption. Only business transactions (not personal) are recorded in the financial statements. The...
