The accounting equation & claims on assets value change

Research output: Chapter in Book/InformConference contribution

4 Scopus citations

Abstract

The purpose of the study is to analyze the accounting equation and develop a new model, based on the dual concept of monetary units and the structure of assets and claims on assets. The analysis uses the identity and characteristic functions along with a coordinate transformation, to show that the assets-claims on assets relationship involves a change in claims on assets value. The identity function represents the dual concept of the monetary units and the characteristic function relates both sides of the accounting equation. A different number of dimensions arise on each side of the equation, and a coordinate transformation is applied to have both sides of the equation with two dimensions. This transformation results in a change in the value of claims on assets. Finally, a computation using a probability density function or kernel is proposed to allow approaching the coefficients of the new model. Results show that the accounting equation consists of a series of addition functions to sum up all the monetary units and that a new model with a probability density function can help in the analysis of the assetsclaims on assets relationship.

Original languageEnglish (US)
Title of host publicationProceedings - 2016 3rd International Conference on Mathematics and Computers in Sciences and in Industry, MCSI 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages246-251
Number of pages6
ISBN (Electronic)9781509009732
DOIs
StatePublished - Jan 11 2017
Event3rd International Conference on Mathematics and Computers in Sciences and in Industry, MCSI 2016 - Chania, Greece
Duration: Aug 27 2016Aug 29 2016

Publication series

NameProceedings - 2016 3rd International Conference on Mathematics and Computers in Sciences and in Industry, MCSI 2016

Conference

Conference3rd International Conference on Mathematics and Computers in Sciences and in Industry, MCSI 2016
Country/TerritoryGreece
CityChania
Period8/27/168/29/16

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Computer Networks and Communications
  • Computer Science Applications
  • Computer Vision and Pattern Recognition
  • Hardware and Architecture
  • Control and Systems Engineering
  • Control and Optimization
  • Modeling and Simulation

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