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Momentum accounting and triple entry bookkeeping

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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.

Topics

  • Melse, E. (2009-10-28), Triple Entry and Momentum Accounting (TEMA) – Video in Dutch. Masterclass.
  • Melse, E. (2009-10-28), TEMA analysis of Lehman Brothers – Video in Dutch. Masterclass.
  • References

    Momentum accounting and triple-entry bookkeeping Wikipedia