Cash Recognition of Events in Accounting in the Polish Territories under the Partitions

Purpose: The purpose of the article is to point out that the sources of the current reporting solutions of the regulations of individual countries lie in the history of these countries, and the cash recognition of events in the Polish lands during the period of partitions can be treated as the prototype of the principles of disclosure of cash flows in Polish financial reporting. Design/Methodology/Approach: In addition to literature studies, the article uses the deductive method, supported by the analysis of historical texts and inference by analogy, as the primary research method. After a brief introduction to the subject, the following are presented in turn: a short literature review, a general description of the medieval practice of cash accounting in the First Enterprise of Francesco Datini in Pisa, which dates back to 1383, then features of cash recognition of events in accounting in the Polish territories under the partitions and the cash method in the accounting of the Wilanów estate at the turn of the 19th and 20th centuries. The paper ends with conclusions and directions for further research. Findings: The paper shows, using Poland of the partition period as an example, that the roots of cash flow reporting usually lie in the specifics of a country's accounting development. Symptoms of cash-based accounting and the origins of future cash flow accounting can be traced back to the first in Polish lands more than a century before the first works on dynamic balance sheet, or pagatoric theory. Practical Implications: The considerations may provide a foundation and stimulate further research of varying types on this important topic examining e. g. the impact of dynamic balance sheet theories on the contemporary shape of cash flow reporting or undertaking research on the effects of applying the cash principle in latifundia and landed estates, not only in Poland, but also in other countries. Originality/Value: Symptoms of cash-based accounting and the origins of future cash flow accounting can be traced back to the first in Polish lands more than a century before the first works on dynamic balance sheet, or pagatoric theory.