Semantic Modeling in Accounting
Education, Practice, and Research:
Some Progress and Impediments
Bill E. McCarthy, Arthur Andersen Alumni Teacher
Department of Accounting, The state of michigan State College or university
Published in: Conceptual Modeling: Current Concerns and Foreseeable future Directions, Editors: P. L. Chen, L. Akoka, They would Kangassalo, and B. Thalheim. Springer Verlag, Berlin and Heidelberg, 99, pp. 144-53. All of the decision of past, ongoing, and future studies and of the supreme viability of Entity-Relationship and REA commercial implementations in accounting symbolize the knowledgeable conclusions in the author by itself В
Semantic Modeling in Accounting Education, Practice, and Research: A lot of Progress and Impediments
William E. McCarthy, Arthur Andersen Alumni Teacher
Department of Accounting, The state of michigan State University or college
1 . 0 -- Launch
In late lates 1970s, the first Entity-Relationship (E-R) Conference happened at UCLA in December, and the 1st semantic modeling paper inside the financial systems domain was published in The Accounting Assessment in October. Those two papers by simply McCarthy (1979; 1980) were actually based upon his important dissertation operate completed in 1977 at the College or university of Ma where a computer system science professor -- David Stemple -- had released him for the groundbreaking E-R paper of Peter Chen (1976) that was released the prior year in the primary issue of ACM Orders on Data source Systems. An important additional element of that same thesis function was the advancement a normative accounting info modeling construction, something which necessary more theoretical development during the first E-R Conference. By 1982 however , McCarthy had finished that further work, and he adopted the 1st E-R newspaper and conference presentation having a more general semantic theory of financial phenomena running a business organizations -- the REA accounting model (McCarthy, 1982). В
The first and many basic sort of the REA semantic construction is portrayed in the physique. This fundamental pattern has become extended both equally up to the even more abstract degree of enterprise benefit chains and down to the more specific level of workflow responsibilities in more the latest work by simply Geerts and McCarthy (1997). However , its conceptual main remains the template portrayed right here, and it is all those components that is the subject of this paper. Viewers may see that the model has three types of ancient entities (economic resources, financial events, and economic providers with financial units becoming a subset of agents) and 4 types of primitive relationships (stock-flow, mix and match, control, and responsibility). The ternary control relationship can often be split into two binary interactions for ease sake. The acronym REA derives from your left-to-right economical entity multitude of resources-events-agents. In the of sixteen years since 1982, REA theory provides expanded noticeably in accounting research, practice, and education (Dunn and McCarthy, 1997), and the unique paper was honored by Information Devices Section of the American Accounting Association using its bestowal with the first Seminal Contribution for the Accounting Data Systems Materials Award in 1996. However , the rate on this progress and the assimilation of REA function into the mainstream ideas of accounting have not been easily and road blocks. This is probably the case of most assumptive and sensible changes that the overtly semantic approach (such E-R modeling) causes, require problems have been completely especially visible in the extremely traditional discipline of accounting. This is a field whose practitioners are observed for their focus on conservatism, whose researchers are dismayingly preoccupied with experimentally rigorous analysis of present methods to the exclusion of relevance and new suggestions, and in whose students are noted for his or her affectation with precision and numerical...
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