Reference no: EM132537914

Question - In talking about Cosimo Medici, The Reckoning notes the Neo-Platonic ideal of human glory based on artistic, cultural, and political achievement did not have a place for the gritty practical matters of business. It describes Cosimo as not wanting his sons to share in the vulgar world of medieval business. Ironically, accounting, the very tool that allowed the Renaissance to occur was later seen as a low level discipline that must be shunned by the elite. As was written in Pico's Oration of the Dignity of Man (1486), the development of the human intellect was seen as drawing one closer to God. Mathematics, for example, was held up as a divine science of understanding nature. But numbers must remain pure, beyond the impure earthly interests of business. This antimercantile view was a cultural shift away from the merchant values that had allowed the building of great wealth. In Cosimo's understanding, accounting, the very tool that helped fund the Renaissance and bring tremendous wealth and glory to his family, began to be seen as a lower and even immoral discipline that was beneath his family.

Why was this the case?

In what respect was accounting viewed poorly and was it justified?

What were the implications of this cultural shift for the Medici's, for Italy at this time and for accounting?

What are modern comparisons to Cosimo's Italy (circa 1400) with regards to the view of accounting?