Course description
Luca Pacioli (1445-1517) was a great Italian mathematician of his time. He is also known as ‘the father of accounting’ because he was the author of the first book that explained the double-entry bookkeeping system, which actually was a chapter of his math encyclopedia. His encyclopedia, titled as ‘Summa de arithmetica, geometria, proportioni et proportionalita (1497),’ was printed by the active printing system by Gutenberg in Venezia. It started from here.
His chapter on the double-entry bookkeeping system quickly became a bestseller and translated into several languages. Since then, the accounting and bookkeeping has been playing major roles in business everywhere. It is interesting to note that the double-entry bookkeeping system has not changed much since Pacioli, however, the accounting thought has been consistently changing as the business has changed its shape.
This course explores the history of accounting and bookkeeping while ‘visiting’ several regions that lead world’s economy in the past, e.g., Italy, Netherland, England, and the U.S. This course will learn the economic environments of the regions at the time and try to learn how accounting evolved to better serve the ever-changing style of doing business.
This course also introduces how Japan and China incorporated western double entry bookkeeping system into their respective economy. In the nineteenth century when the two countries were trying to catch up western countries, the role of accounting had increased dramatically. We will put our focus on how these two countries not only imported western bookkeeping system but also merged it with their respective traditional accounting/business practice.
Students are expected to actively participate in class discussions, make a presentation of their findings in the assigned materials, and submit a final research paper based on the presentation and/or relevant themes of their interests.
We plan to make a field visit at The National Archive of Venezia.

Learning Objectives
1. Develop your understanding of the evolution of accounting and bookkeeping,
2. Appreciate the economic environment of the region where accounting and bookkeeping experienced significant change as the consequence.

Prerequisite
Students are expected to possess knowledge of introductory financial accounting.

Evaluation method
50% individual oral presentation during the final exam week
20% participation to class discussions
30% written research paper and in-class presentation

Class Participation
The nature of a small size class is such that regular attendance is an absolute minimum requirement for the effective acquisition of knowledge. Class participation, however, involves much more than just showing up. Your performance in class will be graded along several dimensions: cognitive skills (preparation, logic, knowledge, and creativity); expressive elements (clarity, fluency, and conciseness); effective ingredients (enthusiasm and interest) as well as your contribution to the process of learning (constructive criticism and relevance).
I expect all participants to treat other members of the class with respect. Students should not engage in disruptive behavior that interferes with other students’ learning opportunities.

Discussion Sessions
Classes #7, 9, 11, 14, 16, and 18 are discussion sessions. Each student is required to submit a summary of assigned papers before the class. One student (or a group of students, depending on the enrollment) will be responsible for preparing a presentation of the paper.

Final research paper
Each student will prepare a fifteen to twenty minutes presentation on a single journal article that deals with one of the topics covered in class. The paper should not be the paper listed in the syllabus. The papers to be presented will be assigned on a first-come-first-served basis. Once you decide which paper to present, report to the instructor and obtain approval.

Syllabus and reading assignment

Class #1 Orientation

No required reading

Class #2 The roles of accounting

Burchell, S., Clubb, C., Hopwood, A., Hughes, J., & Nahapiet, J. (1980). The roles of accounting in organizations and society. Accounting, Organizations, and Society, 5(1), 5-27.
DOI: 10.1016/0361-3682(80)90017-3

Class #3 Ancient history of accounting

Soll Chapter 1

Class #4 Bookkeeping before Pacioli I

Soll Chapter 2

Class #5 Bookkeeping before Pacioli II

Soll Chapter 3

Supplementary material
Phillips, T., & Brook, S. (2003). The Romance of Double-Entry Bookkeeping. American Mathematical Society.
Available at https://www.ams.org/publicoutreach/feature-column/fcarc-book1

Class #6 The Summa by Pacioli and early bookkeeping

Soll Chapter 4

Supplementary material
ICAEW Summa de arithmetica,
Available at;
https://www.icaew.com/library/library-collection/historical-accounting-literature/highlights-of-the-collection/summa-di-arithmetica

Class #7 Early bookkeeping in Italy, revisited

Discussion Material
Mills, G. T. (1994). Early accounting in northern Italy: the role of commercial development and the printing press in the expansion of double-entry from Genoa, Florence and Venice. Accounting Historians Journal, 21(1), 81-96.
DOI: 10.2308/0148-4184.21.1.81

Class #8 Accounting at the Dutch East India Company I

Soll Chapter 5

Class #9 Accounting at the Dutch East India Company II

Discussion Material
Baladouni, V. (1986). Financial reporting in the early years of the East India Company. Accounting Historians Journal, 13(1), 19-30.
DOI: 10.2308/0148-4184.13.1.19

Class #10 The South Sea Bubble I

Soll Chapter 7

Class #11 The South Sea Bubble II

Discussion Material
Garber, P. M. (1990). Famous first bubbles. Journal of Economic Perspectives, 4(2), 35-54.
DOI: 10.1257/jep.4.2.35

Class #12 Review

Review of the first half of the semester

Class #13 Industrial Revolution and accounting I

Soll Chapter 8

Class #14 Industrial Revolution and accounting II

Discussion Material
Fleischman, R. K., & Parker, L. D. (1990). Managerial Accounting Early in the British Industrial Revolution: The Carron Company. Accounting and Business Research, 20(79), 211-221. DOI: 10.1080/00014788.1990.9728879
Class #15 Founding Fathers and accounting I

Soll Chapter 10

Class #16 Founding Fathers and accounting II

Discussion Material
Sheldahl, T. K. (1985). America's earliest recorded text in accounting; Sarjeant’s 1789 book. Accounting Historians Journal, 12(2), 1-42.
DOI: 10.2308/0148-4184.12.2.1

Class #17 The rise of professional accountants I

Soll Chapter 11

Class #18 The rise of professional accountants II

Discussion Material
Arnold, A. J. (1996). Should historians trust late nineteenth-century company financial statements? Business History, 38(2), 40-55.
DOI: 10.1080/00076799600000050

Class #19 Great depression and the Lehman Shock

Soll Chapter 13

Class #20 Convergence of traditional Chinese bookkeeping system and modern western bookkeeping system

Lin, Z. (2003). Chinese bookkeeping systems: a study of accounting adaptation and change. Accounting, Business & Financial History, 13(1), 83-98.
DOI: 10.1080/09f85200210164566f

Class #21 Introduction of Modern Western Bookkeeping System in Japan I

Nishikawa, K. (1977). The introduction of Western bookkeeping into Japan. Accounting Historians Journal, 4(1), 25-36.
DOI: 10.2308/0148-4184.4.1.25

Camfferman, K., & Cooke, T. E. (2001). Dutch accounting in Japan 1609–1850: isolation or observation? Accounting, Business & Financial History, 11(3), 369-382.
DOI: 10.1080/713757323

Class #22 Introduction of Modern Western Bookkeeping System in Japan II

McKinnon, J. (1994). The historical and social context of the introduction of double-entry bookkeeping to Japan. Accounting, Business & Financial History, 4(1), 181-201.
DOI: 10.1080/09585209400000043

Class #23 East Meets West

Discussion Material
Auyeung, P. K. (2002). A comparative study of accounting adaptation: China and Japan during the nineteenth century. Accounting Historians Journal, 29(2), 1-30.
DOI: 10.2308/0148-4184.29.2.1

Class #24 Wrap-up

Bibliography
Main text:
Soll, J. (2014). The reckoning: Financial accountability and the rise and fall of nations. Basic Books. ISBN: 978-0465031528.

Last updated: January 22, 2024