|
A Theory of Accounting Relativity: Double-Entry Bookkeeping as a Transformation of Coordinates
Yoshitaka Fukui,
Aoyama Gakuin University
ABSTRACT. The dividend discount model is a special case of the residual income model and the fundamental value of the firm is a scalar invariant under any accounting system with the clean-surplus. Under double-entry bookkeeping, any accounting system is relative concerning valuation in the sense that the fundamental value is a scalar invariant. A dividends stream or any accounting sequence has no a priori conceptual as well as empirical grounds to claim its primacy over others in valuation.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|