Why are the seven accounting principles the basic principles of amoeba management?

From the name of "Seven Accounting Principles", it is understood that the seven accounting principles should be followed in accounting, and accounting is a very important work in the implementation of Amoeba business model, so it is easy to take it for granted that the seven accounting principles should be followed in accounting of Amoeba business model.

When I first came into contact with the business model of Amoeba, I always understood the "seven accounting principles" as the principles to be followed by Amoeba accounting, so when I read Mr. kazuo inamori's book, I felt a lot of contradictions, and the more I read it, the more confused I became. But by chance, I found a passage from Mr. kazuo inamori, which gave me a new understanding of the relationship between the "seven accounting principles" and the amoeba business model, and some doubts were solved.

There is a passage in Mr. kazuo inamori's book: "In Kyocera, my' accounting' and the small collective independent accounting management system called' Amoeba management' are the two pillars supporting the management. This can also be compared to a room. Kyocera's management concept is the foundation. My accountant and the management of amoeba support each other. Without a pillar, this room can't stand. " It can be seen from this passage that kazuo inamori's accounting and amoeba management are two complementary systems, which are juxtaposed rather than subordinate. If we regard them as subordinate relations, we will find that there are many unreasonable places in kazuo inamori's books. For example, kazuo inamori criticized the shortcomings of accrual basis in his Principles of Cash Basis Management, arguing that this accounting rule makes the profit and loss figures displayed on the balance sheet out of touch with the actual cash flow, which is difficult for operators to understand. Therefore, it seems unreasonable to emphasize the importance of cash and advocate cash basis; However, the accounting of amoeba adopts accrual basis, which has caused us a lot of confusion and controversy.

If we regard the seven principles of accounting and amoeba management as a parallel relationship, it will be easy to understand. Accounting should still be based on accrual basis, but we should pay attention to cash flow according to the requirements of the seven principles of accounting, and the recovered funds should be recovered in time, which just reflects the complementary relationship between Inamori accounting and Amoeba model, and also conforms to the management thought of modern accounting (balance sheet, income statement and cash flow statement complement each other). Moreover, China's accounting standards for business enterprises clearly stipulate that the recognition, measurement and reporting of business accounting should be based on accrual basis. Because the accrual basis reflects the real income and expenses of the current period. If we adopt cash basis in the accounting process, it will be a retrogression.

Mr. Cao Xiuyun, the chairman of kazuo inamori (Beijing) Management Consulting Co., Ltd., also clearly pointed out that "seven accounting principles" are the premise of introducing "amoeba management" when he wrote the preface to the book "Practical Learning in kazuo inamori", which further shows that the seven accounting principles are not a part of the amoeba management model, but an independent ideological system, and the introduction of the seven accounting principles can make the implementation of the amoeba management model more smooth. In addition, from the contents of "double confirmation principle" and "carrying out perfectionism" of the seven accounting principles, it can be seen that the application scope of the seven accounting principles should not be limited to the amoeba business model, and it has guiding significance for the operation of the whole enterprise. Therefore, even if the enterprise is not prepared to implement the amoeba business model, it should re-examine the whole enterprise according to the contents of the seven accounting principles and find out the problems existing in the operation in time.

Therefore, the "seven accounting principles", as the premise of introducing the amoeba business model, will embody this concept in amoeba accounting, but it is definitely not a part of amoeba accounting. The interpretation of the seven principles of accounting must not be narrow, which will greatly weaken the guiding role of the seven principles of accounting in enterprise management. Instead, we should take the seven principles of accounting as a guiding concept of enterprise management, understand and apply them in a broader scope, and give full play to their due role.