Momentum accounting and triple-entry bookkeeping is an alternative accountancy system developed by Yuji Ijiri and is the title of the 1989 monograph that he wrote. It is a proposed alternative to double-entry bookkeeping, the method currently favored by the worldwide financial accounting system.
Contents
In regular, double-entry bookkeeping, changes in balances such as earning revenues and collecting cash are recorded. These events are recorded with two entries, usually a debit and a credit, assigned on a given date. In momentum accounting, changes in changes in balances are the recognized events.
Example
An acceleration in revenue earning, such as a $1,000 per period increase of revenues from $10,000 per month to $11,000 per month, is a recordable event that would require three entries to implement.