In this paper, we embed the double entry accounting structure in a simple belief revision (estimation) problem. We ask the following question: Presented with a set of financial statements (and priors), what is the reader's "best guess" of the underlying transactions that generated these statements? Two properties of accounting information facilitate a particularly simple closed form solution to this estimation problem. First, accounting information is the outcome of a linear aggregation process. Second, the aggregation rule is double entry.
Arya, A., J. Fellingham, Jonathan Glover, D. Schroeder, and Gilbert Strang. "Inferring Transactions from Financial Statements." Contemporary Accounting Research 17, no. 3 (2000): 366-385.
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