A Concept of Multiple-Entity Accounting for Capital Distribution

9 Pages Posted: 13 Oct 2005 Last revised: 4 May 2011

Date Written: April 1, 2003


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 "zero-sum game" 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.

Keywords: multiple entity accounting model, macroeconomic policy modelling, business cycles, stock market timing, funds management, stock market investments, asset allocation, corporate strategy

JEL Classification: E10, E32, E60, F00, F21, F40,G10, G20, G30, H00, M40, P10

Suggested Citation

Bijak, George, A Concept of Multiple-Entity Accounting for Capital Distribution (April 1, 2003). Available at SSRN: https://ssrn.com/abstract=818804 or http://dx.doi.org/10.2139/ssrn.818804

George Bijak (Contact Author)

GB Capital ( email )


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