SYNOPSIS: We develop the hypothesis that culturally evolved accounting principles will be ultimately explained by their consilience with how the human brain has evolved biologically to evaluate social and economic exchange. We provide background on the structure and evolution of the brain, the measurement of brain behavior during economic decision making, and the brain’s central role in building economic institutions. We describe the emergence of modern accounting principles and argue that the primary function of accounting in evaluating exchange is to provide quantified information on the net benefits of past exchanges. We review evidence documented by neuroscientists that is consistent with the hypothesis that longstanding accounting principles (e.g., Revenue Realization and Conservatism) have distinct parallels in brain behaviors. Our analysis of Neuroaccounting extends Basu and Waymire (2006) to provide a new way to scientifically view accounting, which has implications for how we think about the origins and persistence of longstanding accounting principles.
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1 June 2010
Research Article|
June 01 2010
Neuroaccounting: Consilience between the Biologically Evolved Brain and Culturally Evolved Accounting Principles
Online ISSN: 1558-7975
Print ISSN: 0888-7993
American Accounting Association
2010
Accounting Horizons (2010) 24 (2): 221–255.
Citation
John Dickhaut, Sudipta Basu, Kevin McCabe, Greg Waymire; Neuroaccounting: Consilience between the Biologically Evolved Brain and Culturally Evolved Accounting Principles. Accounting Horizons 1 June 2010; 24 (2): 221–255. https://doi.org/10.2308/acch.2010.24.2.221
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