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Wednesday, 23 September 2009

All hell breaks lose in final game

All hell breaks lose in final game


We have seen up to now that accountants are always scorekeepers because of their specialized training and knowledge in the two accounting games looked at so far: the monetary item game and the variable item game.

But, they are always also important players in these two games. They are never just scorekeepers as SA accounting professors so eloquently claim. They and all their supporters in this aspect of accounting are dead wrong.

A very interesting point is that in the monetary item and variable item games accountants join all the other members of their management teams to play the business game. As players they all score when they make profits, are part of the profit making process or simply mangage to maintain the real values of economic items.

In the monetary item game they are up against the inflation enemy. There are no apparent enemies in the variable item game as the efficient market mechanism kills all enemies to the equilibrium of supply and demand. We must admit that it was actually a variable item enemy, bad mortgage credit, which caused the current international financial crisis.

The constant item game is a very different type of game. There is only one person who can play this game: the accountant. No-one else in the management team or any worker in the business game can play this game.

We find the second economic enemy in this game: the stable measuring unit assumption. Only accountants can fight against the stable measuring unit assumption.

This economic enemy is a remarkable enemy. It is a stealth enemy. No-one really knows that it is destroying the economy. Those who know, like Market Monkey, say it does not really make any difference. He and they are dead wrong.

The board of directors can acquire a deadly weapon for the accountant to kill the stable measuring unit assumption instantaneously. All boards of directors inexplicably refuse to do anything about it.


Accountants managed to break the constant item game up into two games: a selected income statement constant item game and a mainly balance sheet constant item game.

In the selected income statement constant item game accountants completely crush the stable measuring unit assumption enemy. They inflation adjust salaries, wages, rentals, etc and the stable measuring unit assumption enemy never ever scores as long as accountants value these items in units of constant purchasing power.

Accountants are world champions in this selected income statement constant item game. They never lose and the stable measuring unit assumption enemy never scores one single point against them.

Accountants are obviously also scorekeepers in this game. They are the only players on the field but they get invaluable help from trade unions off the field.

In the next post all hell brakes loose in the final game. You will never ever believe what happens.

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