A Concept of Multiple-Entity Accounting for Capital Distribution

The article introduces a new model of multiple-entity accounting system that evolved from triple-entry bookkeeping idea developed by Ijiri Y., the contract model of the firm proposed by Sunder S., and studies of money theory by Dobija M. The multiple-entity accounting model, by contrast to the double entry bookkeeping and triple-entry systems, accounts for more than one entity operating within a sphere of economic influence. Capital creation is a quot;zero-sum gamequot; within an adequately defined sphere of economic activities. The model is a strategic management tool that can be used for making management and policy decisions. It enables accounting for dynamics of the capital distribution between various economic interests. Possible applications include macro-economic modeling of industrial, monetary, fiscal, taxation, foreign exchange and national trade policy issues, analysis of business cycles in relation to the stock market timing and funds management asset allocation strategies. At corporate level, the model can be used for development, analysis and monitoring of budgets, plans, corporate strategies for sustainable competitive advantage, and maximizing shareholders value. At international level, the model can help analyse dynamics of the wealth of nations