Theological-Ethical Critique of Accounting

Abstract

In the previous chapter, we briefly discussed the philosophical underpinnings of accounting. The social practice of accounting has a particular view of the world, which is founded on two key philosophical ideas. First is the idea that an organization is a unit, a single entity that can be identified in and of itself. The organization is an entity that can be succinctly distinguished from others and a set of accounts can be kept to recognize and record its activities. Second, there is the notion that equality is the fundamental principle in the organization’s life: assets must exactly match liabilities (assets = equities; assets = liabilities + owners’ equity). The whole process of measuring, recording, and reporting the transactions of an entity must always end up with this equality. The social practice of accounting takes the form of ideas and principles that are clearly based on or warranted by this set of central convictions. Any effort to understand the mindset and “social ethics” of accounting as a profession or discipline in itself must recognize the critical significance of its particular view of the world.