Symmetric accounting to integrate 'goods' and 'bads' in the double-entry framework: Logically stretching the domain of conventional accounting to the other half space

摘要

Conventional accounting deals with "goods," resources that are of positive value to firms. This paper extends it to symmetrically deal with "bads," items that are detrimental to firms. Goods (bads) are recorded on the debit (credit) side of the balance sheet. Likewise, receivables, i.e. anticipated increases, of goods (bads) are on the debit (credit); payables, i.e. anticipated decreases, of goods (bads) are on the credit (debit). Bads include environmentally hazardous items as well as impaired goods with high closure costs. Use of a cost accounting system to record goods and bads in an integrated manner is also briefly explored.