Time and accounting in the Middle Ages: An Italian-based analysis

Abstract

This work is focused on an issue scarcely examined in the literature, concerning the analysis of the relationship existing between time and accounting practice. The aim is to highlight how changes in the interpretation of the concept of time influenced the development of accounting practices and contributed to the rise of periodical accounting reporting from the beginning of the thirteenth century to the end of the fifteenth century. The socio-economic context existing in Italy in the Middle Ages, the development of commercial partnerships among merchants (compagnie) and the international trade created the conditions for the development of periodical reporting. The relevance assigned to time in economic activity is one of the crucial factors of the rise of accounting information related to recurring accounting periods. Furthermore, the article shows how the concept of time is important and its significance widely underestimated, in a variety of further applications.