International sceintific and expert conference 2

1. INTERNATIONAL SCEINTIFIC AND EXPERT CONFERENCE Economic Development and Competitiveness of European Countries: Achievements –

NOVI SAD SCHOOL OF BUSINESS
INTERNATIONAL SCEINTIFIC AND EXPERT CONFERENCE
Economic Development and Competitiveness of European Countries:
Achievements – Challenges – Opportunities
FROM THE GEORGE SIMMEL'S
"PHILOSOPHY OF MONEY"
TO THE CHARLES SPRAGUE'S
«PHILOSOPHY OF ACCOUNTS»
Pavel Baranov
Alexander Shaposhnikov
October 3-5, 2018
Novi Sad, Republic of Serbia

2.

Initial theses
• The financial statements as the result of
accounting procedures are the main source of
information for decision-making by subjects of
market economy.
• In the conditions of dynamic development of
the economic relations and digitalization of
market economy traditional accounting faces
serious calls.

3.

Illustration of Initial theses
Weakness of the
modern
fundamental
philosophical
bases of
accounting
Problems of
ensuring
reliability of
financial
statements
Growth of
information risk
in decisionmaking by users
of financial
statement

4.

Research hypothesis:
• The appeal to historical heritage of scientists
and integration of philosophical and economic
views are capable to lift the theory and
practice of accounting to qualitatively new
level.

5.

Attempt of an argumentation
Georg Simmel, 1858 — 1918
“Philosophy of money”
1900
Charles Sprague, 1842 – 1912
“Philosophy of accounts”
1907

6.

Attempt of an argumentation
Georg Simmel, 1858 — 1918
“Philosophy of money”
1900
Simmel’s treatise devoted to the
nature of money significantly enriches
and expands ideas of a possibility of
application of diverse methods of
evaluation of accounting objects and
essence of category of liquidity in
economic science.
Disclosure of variety of a phenomenon
of money by Simmel, including its
social content and moral value, allows
to carry out revision of habitual ideas
of limitation of tools of monetary
assessment of assets and liabilities.

7.

Attempt of an argumentation
Proceeding from Simmel's judgments,
the accountant in the aspiration to
present a reliable and conscientious
view of a situation of the company
shouldn't lean on once the chosen
method of monetary assessment, and in
each case is obliged to carry out search
of such method most of which would
correspond to inquiries of users of
financial statements.
In this sense all evolution of balance
theories, since static and finishing with
actuarial balance, confirms justice of
conclusions of Simmel.
Georg Simmel, 1858 — 1918
“Philosophy of money”
1900

8.

Attempt of an argumentation
Philosophical Simmel’s platform for
money role in economic relations is very
close to the Charles Sprague’s ideas of
account construction and form. Sprague’s
point of view on the priority of law basis
of economic transactions can’t be realized
without application of money evaluation
principle.
Sprague’s vision of the nature of accounts
is examined through the prism of
transformation of assets and loans as a
unique process of circulation of the rights
and obligations.
Charles Sprague, 1842 – 1912
“Philosophy of accounts”
1907

9.

Attempt of an argumentation
Charles Sprague, 1842 – 1912
“Philosophy of accounts”
1907
The problem of money evaluation of
mentioned rights and obligations
concerning foregoing balance concepts
(static, dynamic, organic, actuarial etc.)
can’t be solved without deep
understanding of the phenomenon of
money as a universal measuring
instrument.
Such an understanding is the core of
Simmel’s «Philosophy of money».

10.

IMPLICATIONS AND CONTRIBUTIONS
• Conclusions based on conducted research have a
wide perspective against the background of
digitalization of accounting and emergence of
new accounting subjects such as digital assets,
cryptocurrencies, blockchain transactions etc.
Regeneration of economic relations is forming
demand for new approach to economic
modelling in terms of accounting system.
• This demand is new in its nature and it can’t be
satisfied without reconsideration of meaning of
the money and widening mission of modern
accounting.

11.

KEY RECOMMENDATIONS
• Creation and development of new accounting
and financial reporting methods which is
inevitable in transforming economic conditions
must be based on interdisciplinary platform
reflecting specific features of accounting as
socially constructed science and socially oriented
activity. Moreover, this platform must involve
current apperception of money in the vision of
economic agents who generate the principles and
mechanisms for evaluation of assets, loans and
facts of enterprises life.

12.

Thank You for attention!!!
Pavel Baranov, Doctor of Economics, Head of
information-analytical support and accounting
department,
Alexander Shaposhnikov, Doctor of Economics,
Professor of information-analytical support and
accounting department,
Novosibirsk state university for economics and
management, Novosibirsk, Russian Federation
email: [email protected]
www.nsuem.ru