The development of science and meta-science of the different disciplines of knowledge and mainly natural sciences have contributed in a very significant way to the theoretical development of the accounting discipline.
The purpose of this text is to show hierarchically the greatest advance in methodological rigor, of the different proposals that have been developed in accounting theory, in the second half of the twentieth century.
Richard Mattessich's work constitutes the greatest advance in accounting in our time, his contributions to accounting since the 1950s have been at the forefront of the epistemological development of the sciences; from the considerations of the axiomatic formalization, to the reconstruction of the theories from the position of the current structuralists Balzer and Moulines.
The support of accounting as a science of an empirical, social and positive-normative nature, allows us to understand accounting in its cognitive dimension, but above all in its teleological dimension, oriented to specific purposes of the different environments in the different accounting systems where it is used. develop them.
The CoNAT theory proposal and the CoNAM methodology constitute the most elaborate development of accounting in terms of its epistemic and methodological orientation, where the traditional relation of science -cause effect- is replaced by the relation -means ends- more appropriate for The treatment of social disciplines, in this sense, Mattessich not only manages to use the most advanced models in philosophy of science, but also achieves a definition of the object, method and methodology of accounting.
In his work "Towards a general and axiomatic foundation of accounting science" (1957), he presents a scheme of the framework for an axiomatic system and with the help of the mathematical concepts of matrices, develops a practical basis valid for all systems of accounts. "The existence of many accounting systems today values the attempt to develop a general base…" thus, Mattessich's intention is reflected, the construction of a general, universal, polyvalent and multipurpose theory, which serves as a theoretical support for all the accounting systems existing or to exist, which will also call them concrete interpretations or applications of the general theory.
In the suggestion for an axiomatic basis of accounting, Mattessich recommends: Euclid's Elements, Newton's Mathematical Principles and Espinoza's Ethics: in the present work three axioms, eight theorems, seventeen definitions and seven requirements, developed for accounting science, are presented.:
Axioms:
- Axiom of plurality: there will always be at least two objects that have a property in common. A measure is attributed to the common property of these objects.Axiom of the double effect: There is a fact that produces an increase in the property (more precisely, in the magnitude of the property) of an object at least, and a decrease in it degree in the corresponding property of another object.Axiom of the period: The circulation systems and consequently the accounting systems, are divided into periods of time. (financial statements are constructed at the end of a period)
Theorems:
- Theorem of the equality of the trial balance Theorem of the balance of a state Theorem of continuity Corollary (to the theorem of continuity) Theorem of the two states Theorem of plurality Theorem of the reduction of states Consolidation theorem
Requirements:
- Entity requirement Linking requirement Unit requirement Volume fluctuation requirement Valuation requirement Duration requirement Status specification requirement
Definitions:
- D. of a transaction D. of a circulation system D. of accounting entity D. closed accounting system D. account (aggregation) D. open accounting system D. to pay off D. trial balance D. status or relationship D. of a sigmaD element. of a deltaD element. of a sigmaD relationship or state. of a deltaD state. balance equivalence D. of settlement or closing matrices D. of aperture matrix D. complementary link
In the text "Accounting and analytical methods" (1964) reformulates the construction of 1957 and presents a set of eighteen basic premises or hypotheses enunciated semantically, indicates (Cañibano, 1974, pp. 52-60) that said works are improved and completed with the German version of the work published in 1970, in which he introduces about eight primitive terms and nineteen basic assumptions.
Primitive terms:
- Number: elements of the body of real numbers Value: number that expresses a real or supposed preference Monetary unit: base of a real or fictitious monetary system Time interval: moment of time to be recorded Economic objects: assets and liabilities (wealth) belonging to a person and another economic unit Economic subjects: individuals, legal entities or groups of them that carry out economic activities Set: collection of objects, subjects or events Relationships: subset of the Cartesian product of two or more sets.
Basic assumptions: these assumptions are duly explained in (Cañibano, 1974-79, pp. 53-55), in (Tua, 1983, 599-601) reference to them is found in the article by Táscon Fernández and in (Valmayor y Cuadrado, 1999, 110-111), this last work includes the version of (Mattessich, 1995a, pp. 84-86) in which it presents twenty-one postulates and which, as it is the most recent, will be mentioned below.
- Attribute: there are combinable attributes that belong to an economic objective; the magnitude of such an attribute is represented by a numerical system. Measurement of time: there is a relatively small sequence –Ej. dates- that can be ordered, added and differentiated by means of a numerical system. Economic objects: there are changing objects, changing attributes –Ex. Values, quantities, which are represented by an accounting system. Economic subjects: there are economic subjects who have, must or control economic objects, have preferences and develop objectives in the system. Economic entity: there are some economic entities, represented by an accounting system. Structure: there are some empirical structures –Ex. Hierarchy of subjects, economic objects - that reflect the characteristics of the relevant entity Entry-exit principle:each transfer of a specific economic asset gives rise to another that preserves an essential property… Principle of symmetry: for any asset (scarce economic resource) there is a claim, of property or debt, where the value is equal but not identical with the asset value (value of the resource) Economic transactions: there is an empirical event that changes the composition or structure of the entity and is represented by an “accounting transaction.” Linear aggregation: for each account (aii = 1… n) at any time the transaction of Summation is linear. Adding attributes of the same type: sum of attributes of the same class. Purpose orientation: determines the purpose of the specific hypothesis for which the placeholder axioms are supplied… the specifications of points 13 to 21,lead us to the means that seek –CoNAT- (Conditional normative theory) Valuation: there is some specific hypothesis that in correspondence with point 3 assigns a value to the objects of an accounting transaction in general. Debt redemption: there is some specific hypothesis regulating the amortization of debts by the nominal value, independent of the changes in the price level. Realization: There are some hypotheses that determine if an accounting transaction:There are some hypotheses that determine whether an accounting transaction:There are some hypotheses that determine whether an accounting transaction:
- Changes the current income and therefore the owner's capital. Changes the value of the owner's equity without changing his rent Does not change the owner's equity during the present time
- Classification: there are some hypotheses determining the structure and hierarchy of an accounting system Data entry: There are some hypotheses that determine data entry Duration: The hypotheses that determine the duration of the accounting period Relevance: those that determine when an economic event requires a economic transaction. Distribution: are those that determine the distribution of the flow of value to sub-units of the entity Consolidation: are those hypotheses that determine the conditions under which two or more accounting systems are consolidated.
Following the language and methodology of accounting, Richard Mattessich formulates three research traditions, this author agrees with Hendriksen's (1974) criterion of eclectic approach, complementary and non-exclusive programs presented by Montesinos (1978), and multi-level considerations. -paradigmatics by Gonzalo and Cañibano (1995), when they present the research programs and subprograms, since in a quote from Professors Valmayor and Cuadrado de (Mattessich, 1993, 205-206) so expressed “it is important to bear in mind two questions: that in accounting, as in any other discipline, there are different research traditions that compete with each other… and that each tradition constitutes a network of theoretical elements, which somehow compete with each other… ”.
The term research tradition is coined with special interest for the social sciences, as shown by Jesús Beltrán and the use of this methodology in psychology "Laudan uses the term" research tradition "which he defines as a set of general assumptions about the activities and processes in a field of study and on the appropriate methods to use to investigate problems and construct theories in that field. Thus, behaviorism is a research tradition, as is cognitive or humanistic psychology, as is ecology "
Research traditions of Richard Mattessich
The concept "Research Tradition" is coined by Laudan, as he exposes it (Moulines, 1998, pp. 320-324) in the distinction of the two "propositional networks" of the term "scientific theory", the rigorous sense and the sense of "set of doctrines or assumptions much more general and much less easily corroborable empirically", the main elements of the "research tradition" are: shared assumptions - metaphysical commitments and epistemic and methodological norms -, theoretical articulation, problem solving - problems empirical and conceptual-, historical development and coexistence. In the accounting treatment, the use of the term “investigative tradition” does not commit Mattessich along the lines of Laudan, clearly post-historicist, since he is closer to structuralism.
Professor Mattessich follows a structuralist line, without completely abandoning the influence of a Kuhnian character. This is how it presents the following research traditions:
- stewardship program
This program focuses on the aspects of providing the information necessary to establish an efficient contractual basis in relation to accounting responsibility, and its control, as a first accounting function and establishes three phases in it.
- Periodification Agency approach (primitive) Agency-information theory
- Valuation investment program
It considers as a primary task of accounting, the valuation of assets, capital and income with the ultimate objective which is the correct allocation of resources and therefore investment decisions. This tradition has three phases:
- Present and present value Risk sharing or risk sharing approach Capital market
- Information strategic program
“It is more a program than a research tradition”, it is oriented towards objectives, raises the need for different related models for different objectives; It presents two basic features, the formulation of basic premises and the establishment of instrumental hypotheses for a series of different applications, under the ends-means relationship.
Richard Mattessich's Conditional Normativism
This author is highly influenced by philosophers of science such as: Popper, Kuhn, Lakatos, Suppes, Sneed, Stegmüller, Balzer and Bunge and in the accounting field her latest works are influenced by Butterwork and Falk who have a Kuhnian orientation.
Mattessich considers accounting an applied science, which pursues a practical purpose such as, to measure the wealth factors in an economic entity, "the flow of economic wealth in terms of its creation, distribution and destruction." To be more specific, the difference between pure science and applied science lies in the fact that while the former seeks the cause-effect relationship, the latter focuses on the ends-means relationship; aspect that leads to a different treatment with respect to value judgments and consequently enriches the distinction between positivism and normativism; although it was already clear that these currents do not occur in an aseptic or pure sense.
To determine how the positive and the normative are complemented in a science, let us take as the following example (Cruz, 1999, p.26) “economic science initially presents two major divisions: positive economics, which includes descriptive economics and theory. economics, and normative economics, constituted by economic policy "
Professor Mattessich proposes the CoNAT methodology (Conditional Normative Theory), as an instrument to achieve the ends proposed by the accounting system, which requires a hierarchy of objectives, where value judgments play a fundamental role; The development of this theory requires a sufficiently flexible methodology that allows adequate treatment for the various objectives; In this regard, Mattessich proposes CoNAM (Conditional Normative Methodology), which incorporates value judgments into the theory itself and offers various models for the determination of specific accounting objectives.
This methodology also has a criterion for the validation of its propositions and is the empirical test of the effectiveness of the means to achieve the ends, but it does not renounce its positive component, where the PAT plays a significant role based on empirical observation. builds the multipurpose general theory, but without remaining exclusively in the descriptive field, from where the instrumental hypotheses emerge, which are teleologically testable.
The ends-means relationship is not one-to-one, but on the contrary, an end can be achieved with different means and a means can serve to achieve different ends; In the CoNAT, value judgments are incorporated into the theory itself, it must also be added that in the relationship between means, instrumental hypotheses, ends and teleological contrast, the criterion of conditioning factors also intervened (eg "Type of company, individual, physical, other restrictions, taxes on profits ”); It is clear that the general theory is not a finished project, but on the contrary, it is built with permanent research.
F j: Final objects
M j: means
R j: instrumental hypotheses
(1): Value judgments
(2):. empirical-verification
- General considerations of the work of Richard Mattessich: Epistemological considerations.
Mattessich is undoubtedly the author who has made the most contributions to accounting research in the epistemic-methodological field, from his work "Towards a general and axiomatic foundation of accounting science", to the most recent considerations of the CoNAT where a search is highlighted of a scientific, normative and empirical theory and the formalization of the accounting bases in an article written with Balzer in 2000.
He has extensive training in the philosophy of science, knowing and applying Popperian falsificationism, Kuhnian paradigms, Lakatosian research programs, Laudan research traditions, in addition to the concepts of Sneed, Suppes, Stegmüller and Balzer in his accounting construction. among others; which allows an evolution in the field of scientific knowledge for our discipline.
- General considerations
Accounting for Mattessich has an economic orientation, an issue that the author has maintained over time, in his function of studying "the flow of economic wealth in terms of its creation, distribution and destruction", this consideration was already explicit in the 1957 work; Its status as a science that is necessarily interrelated with other sciences and disciplines is another characteristic note, in addition and as a fundamental criterion its non-dogmatic nature, since it is clear that accounting is not a body of finished knowledge, but, on the contrary, is a long process, as well as highlighting the fundamental role of the extensive training that the accountant requires, not only to contribute to the consolidation of the general accounting theory, but for the rational or objective determination,of the purposes of the accounting systems, their conditioning factors and the instrumental hypotheses duly verified that allow us to be effective in achieving the ends.
Professor Henry Alberto Romero León, criticizes the proposal for a General Accounting Theory, considers that the primitive terms deserve a reassessment, cites the nineteen basic assumptions of Mattessich presented in the sixties, but omits subsequent reconsiderations around the same, which Mattessich formulated in the nineties, the CoNAT and CoNAM theory and methodology are also overlooked and their current structuralist orientation; Professor Romero cites in his criticism the deductive logical itinerary exposed by (Tua, 1995, pp. 53-55) –inspired by Mattessich-, he states that accounting does not have a material or ideal object of study.
- Accounting theory currently has a powerful epistemological tool, such as structuralism, with the help of which this scientific discipline can achieve a higher level of logical, conceptual and linguistic coherence, which allows to know the accounting relationships from the definition of its elements and links of internal and external interdependence. - At this point it is necessary to differentiate from the purely instrumentalist or pragmatic vision, which values theories based on their usefulness. Accounting is not positive, nor normative, nor is it inductive or deductive, it does not have a unique method, nor an exclusive way When approaching his study, he assumes an eclectic position in which he takes the most useful of each methodological tool, just as other human sciences do.Methodological monism is discarded and a constructive conceptual pluralism is advocated. - (Hendriksen, 1974, p. 19) I present an approach called the eclectic - The problem of truth in accounting is displaced by the usefulness of information for decision-making, conditioned by the cost-benefit relationship, the cost of obtaining the information and the utility that it represents for both internal and external users; as for example in measurement (central problem of accounting, although it can be argued that measurement is a problem of the economy and is solved through the market), valuation and cost allocation, determination of the utility and maintenance of capital, which requires an understanding of the problems of purchasing power of the currency (real and nominal values).Accounting has two components, one of a theoretical-conceptual nature, of an abstract level in its language, called the scientific part, and a component of an empirical level applied to concrete facts, called the technical part; to the extent that the technical part is based on the scientific part, accounting will reach a higher level of utility and progress within the scientific disciplines; But if there is a gap between the scientific and the technical, we will be talking about a scientific conceptual construction on the one hand and a primitive application on the other, with the absence of theoretical support and with little use in the scientific and the pragmatic. communications and computing, do not diminish the work of the accountant,on the contrary, they increase the level of responsibility and the requirement to present models that represent reality, in its economic, social, environmental, psychological aspects, etc. since the theory seeks to bring the conceptual representation of reality closer to reality itself, in terms of the processes of production, distribution, use and consumption of scarce and non-scarce goods and services, which are represented in monetary and non-monetary values.
These goods and services, which become the object of accounting, have a fundamental characteristic: their permanent movement is a dynamic object, which does not remain in a single state, but on the contrary presents a constant and permanent fluctuation, any static description of the same, it is not more than a visualization of what was, but that no longer is. In this sense, two fundamental functions become valid, that of dialectically explaining and predicting their future states, in terms of their demand, need, qualitative and / or quantitative assessment, etc.
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Author
Eutimio Mejía Soto
[email protected] [email protected]
EVOLUTION OF RICHARD MATTESSICH'S ACCOUNTING THOUGHT
Contributed by: Eutimio Mejía Soto - UQ Public Accountant - [email protected]
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