Schmalenbach and the chart of accounts

Since the World War II, chart of accounts have played a vital role in the development of accounting in Poland.

A writer and professor at Cologne, named Eugen Schmalenbach (1873-1955), believed that chart of accounts are not mere carriers of balances but it contains significant information which can be prepared regularly and speedily to respond rapidly to the external and internal circumstances infleuncing the economic issues of an enterprise.

Schamalenbach used "price level accounting"  or "uniform chart of accounts".

Price considered as the basis of value, helped and assisted decentralize management to evaluate and compare the entity's performance and financial condition of similar companies within the same sector of the economy and industry.

Also, Price seemingly to be available as control and the corrective measure for investment assessments and decisions.

Schamalenbach also advocated that traditional accounting policies must be changed so to keep with relevant and reliable information which builds challenges, satisfaction and ingenuity of accountants.