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Research notes about Federated Bookkeeping and related topics
https://federatedbookkeeping.org
MIT License
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Continuous Bookkeeping #23

Open michielbdejong opened 2 years ago

michielbdejong commented 2 years ago

I'm learning about depreciation and about "closing the books" (transferring accumulated income/expenses amounts to a retained earnings account).

For instance this list of methods for depreciation is optimised for manual processing, they can be done on a piece of paper without a calculator.

Both require the use of fixed periods (generally, monthly depreciation and yearly closing).

My obvious question is, can't these both be done continuously, so you effectively depreciate a micro-amount each millisecond of each day, and you also update your retained earnings account each millisecond of each day?

michielbdejong commented 2 years ago

We could propose a Grant for the Web project to investigate this, because it feels like current state-of-the-art bookkeeping practice is not ready for the advent of micropayments and ILP/STREAM.