Home  Journals  Economic Analysis: Theory and Practice  9(174) - 2010 March

Analysis of Static and Dynamic Accounting Models

Available online: 24 March 2010

Subject Heading: THEORY OF THE ECONOMIC ANALYSIS

JEL Classification: 

It is emphasized in the article that the profit had no independent meaning till XIX c. and was expected to be obligatory capitalized. When forming the accounting models the following should be taken into account: the type of accounting (static, dynamic and actuarial accounting), the interests of the main users’ of information (creditors, proprietors, potential and real investors), the order of forming the fiscal indexes (discrete or permanent), special accounting philosophy for each model. Typical accounting philosophy for dynamic accounting needs was created in the frame of static practice (Datini’s company since 1399, partially the theory of balance diversity). However, for the final consolidation of dynamic practice the continuity, periodicity and separate entity principles and also the limited liabilities of the company’s owners should be considered as well.

Keywords: static and dynamic accounting, accounting period, fiscal year, cost principle stock-taking, amortization, reserves, fiscal result, profit capitalization, Luca Pacioli, Venice and Florence models, Savary Jacques

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ISSN 2311-8725 (Online)
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