Accounting in Organizations and Society

Abstract

This chapter summarizes the history of accounting and argues that the necessity of accounting in any economy, including an economy based on anarchist values and institutions, as long as resources are scarce. It provides an overview of the arguments against markets; and describes how an economy based on anarchist values might look and what accounting challenges such an economy would encounter. If one looks up ‘accounting’ in the Swedish National Encyclopaedia , the definition translates as the ‘collection, registration, aggregation and reporting of financial transactions in companies or organisations.’ Financial accounting focuses on providing information to existing and potential investors and parties external to the organization such as creditors and regulatory agencies. The purpose of accounting is to enable and facilitate the registration, organization and distribution of the essential information needed to make financial decisions. A participatory economy also aims at maximizing economic justice, that is to say, how access to society’s produced goods and services should be shared among citizens.