The REA Accounting Model: Intellectual Heritage and Prospects for Progress
Cheryl L. Dunn
Florida State University
William E. McCarthy
Michigan State University

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William E. McCarthy
Department of Accounting
N270 North Business Complex
Michigan State University
East Lansing, MI 48824

Acknowledgments: The authors would like to acknowledge the helpful comments of three anonymous referees and the editor on two earlier versions of this paper. Helpful pointers into the literature were provided by William Schrader and Stephen Zeff. We would also like to acknowledge comments received at the Michigan State University 1995 Summer AIS
Colloquium and at the 1995 Workshop on Semantic Modeling of Accounting Phenomena.
Financial support was received from Arthur Andersen LLP and from the Departments of
Accounting at Grand Valley State University and Michigan State University.

The REA Accounting Model: Intellectual Heritage and Prospects for Progress
ABSTRACT: Researchers often equate database accounting models in general and the
Resources-Events-Agents (REA) accounting model in particular with events accounting as proposed by Sorter (1969). In fact, REA accounting, database accounting, and events accounting are very different. Because REA accounting has become a popular topic in AIS research, it is important to agree on exactly what is meant by certain ideas, both in concept and in historical origin. This article clarifies the intellectual heritage of the REA accounting model and highlights the differences between the terms events accounting, database accounting, semantically-modeled accounting, and REA accounting. It also discusses potentially productive directions for AIS research. Key words:

REA accounting, events accounting, database accounting, semantically modeled accounting, accounting models, accounting