"From clay tokens in ancient Mesopotamia to today’s debates over corporate responsibility and sustainability, this session traces the long and fascinating history of accounting as a measure of “truth.” We explore how bookkeeping evolved alongside trade, empire, and capitalism - culminating in the double-entry system of Renaissance Venice that underpinned the modern economy. Through case studies such as Enron, WorldCom, and Boeing, we examine how accounting can both reveal and conceal reality - how “creative accounting” and outright deception have shaped public trust, regulation, and reform. We also consider the philosophical question at the heart of the discipline: can accounting ever truly represent reality, or is it always a social construct shaped by human judgment, bias, and values? Finally, the course looks at contemporary movements such as integrated reporting and ESG metrics, which seek to broaden the traditional focus on profit and shareholder value to include environmental and social well-being.

DELIVERY MODE

• Hybrid (F2F & Online simultaneously)

SUGGESTED READING

• Jane Gleeson-White, Double Entry, Allen & Unwin, 2013
• Jane Gleeson-White, Six Capitals, Allen & Unwin, 2014

COURSE OUTLINE

• Origins of Accounting – Counting the Worldl: From clay tokens to cuneiform: accounting as humanity’s first information system; The birth of money, trade, and measurement of value; Accounting’s role in early empires and economies
• The Double-Entry Revolution: The invention of double-entry bookkeeping in medieval Venice; Luca Pacioli and the mathematical foundations of accounting; How double-entry enabled capitalism and the modern corporation
• The Age of the Accountant: The rise of professional accountancy in the 19th century; From Wedgwood to DuPont: accounting as a tool for management and cost control; Measuring national wealth: Keynes and the birth of GDP
• Truth and Deception in the Modern Era: Famous accounting scandals (Enron, WorldCom, AMP, Boeing); "Creative accounting" vs. outright fraud; The impact of Sarbanes–Oxley and corporate governance reform
• Accounting and Ethics – Measuring What Matters: Can financial reporting ever be “true”?; Philosophical views on truth, lies, and “bullshit” in financial reporting; Beyond profit: integrated reporting, sustainability, and the search for social accountability
• The Future of Truth in Accounting: Is accounting keeping pace with society’s moral and environmental challenges?; Rethinking what a “true and fair view” really means in the 21st century

LEARNING OUTCOMES

By the end of this course, students will be able to:

1. Explain the historical development of accounting from ancient record-keeping to modern financial reporting.
2. Describe how double-entry bookkeeping revolutionised commerce and enabled the rise of capitalism.
3. Analyse major accounting scandals to understand how “creative accounting” distorts truth and public trust.
4. Evaluate the ethical and philosophical questions underlying financial reporting, including concepts of truth, lies, and “bullshit.”
5. Discuss the limitations of profit-based measurement and the growing role of sustainability and social impact reporting.
6. Reflect on how accounting both shapes and reflects society’s values, laws, and economic priorities.
7. Assess whether modern frameworks such as integrated reporting can provide a more truthful and holistic view of organisational performance.