Double entry bookkeeping replaced by internet

There is an interesting question being asked at the moment, given that fact-based knowledge is so accessible using the internet, is there a case for not teaching facts at all?

According to Don Tapscott, a consultant and speaker, who specialises in organisations and technology, memorising facts and figures is a waste of time because such information is readily available. It would be far better to teach students to think creatively so that they can learn to interpret and apply the knowledge they discover online.

“Teachers are no longer the fountain of knowledge, the internet is”
Don Tapscott

Is this the solution for educators with an over full curriculum, the result of having to continually add new content to ensure their qualification remains relevant and topical? Perhaps they can remove facts and focus on skills development? After all its skills that matter, knowing is useful but it’s the ability to apply that really matters …right?

What makes you an accountant

When you start to learn about finance, you will be taught a number of underpinning foundational subjects including, law, economics, costing and of course basic accounting. Sat stubbornly within the accounting section will be double entry bookkeeping. This axiom is fiercely protected by the finance community such that if anyone questions its value or challenges its relevance they will be met with pure contempt. And yet, is the knowledge as to how you move numbers around following a hugely simple rule i.e. put a number on one side and an equivalent on the other of any use in a world where most accounting is performed by computers and sophisticated algorithms? I am sure there will be similar examples from other professions and industries. The challenge being, do doctors really need to understand basic anatomy or lawyers read cases dating back to 1892?

“Everyone is entitled to his own opinion, but not to his own facts”
Daniel Patrick Moynihan

But Knowledge is power

Daniel T. Willingham is a psychologist at the University of Virginia and the author of a number of books including, why students don’t like school. His early research was on the brain, learning and memory but more recently he has focused on the application of cognitive psychology in K-16 education.

Willingham argues that knowledge is not only cumulative, it grows exponentially. In addition, factual knowledge enhances cognitive processes like problem solving and reasoning. How knowledge Helps.

Knowledge is cumulative – the more you know the more you can learn. Individual chunks of knowledge will stick to new knowledge because what you already know provides context and so aids comprehension. For example, knowing the definition of a bond ‘a fixed income instrument that represents a loan made by an investor to a borrower (prior knowledge), enables the student to grasp the idea that anything fixed has to be paid by the company (the lender) regardless of its profitability and this is the reason debt is considered risky. (new knowledge)

Knowledge helps you remember – the elaboration effect has featured in a previous blog. In essence it suggests that the brain finds it easier to remember something if it can be associated with existing information. Using the same example from above, it is easier to remember that bonds are risky if you already knew what a bond was.

Knowledge improves thinking – there are two reasons for this, firstly it helps with problem solving. Imagine you have a problem to solve, if you don’t have sufficient background knowledge, understanding the problem can consume most of your working memory leaving no space for you to consider solutions. This argument is based on the understanding that we have limited capacity in working memory (magic number 7) and so to occupy it with grasping the problem at best slows down the problem-solving process, but at worse might result in walking away with no solution. Secondly knowledge helps speed up problem solving and thinking. People with prior knowledge are better at drawing analogies as they gain experience in a domain. Research by Bruce Burns in 2004 compared the performance of top chess players at normal and blitz tournaments. He found that what was making some players better than others is differences in the speed of recognition, not faster processing skills. Players who had knowledge of prior games where far quicker in coming up with moves than those who were effectively solving the problem from first principle. Chess speed at least has a lot to do with the brain recognising pre learned patterns.

Skills are domain specific – not transferable

There is one other important lesson from an understanding of knowledge – skills are domain specific. The implication being that teaching “transferable skills” e.g. skills that can be used in different areas, communication, critical thinking etc doesn’t work. A skill (Merriam Webster) is the ability to use one’s knowledge effectively and readily in execution or performance. The argument being that in order to use knowledge effectively, it needs to be in a specific domain.
In July 2016 the Education Endowment Foundation in the UK released the results of a two-year study involving almost 100 schools that wanted to find out if playing chess would improve maths. The hypothesis was that the logical and systematic processes involved in being a good chess player would help students better understand maths i.e. the skills would transfer. The conclusion however found there were no significant differences in mathematical achievement between those having regular chess classes and the control group.

Long live double entry bookkeeping

This is an interesting topic and open to some degree of interpretation and debate but it highlights the difficult path curriculum designers have to tread when it comes to removing the old to make space for the new. In addition there is a strong argument to suggest that core principles and foundational knowledge are essential prerequisites for efficient learning.
But whatever happens, we need to keep double entry bookkeeping, not because knowing that every debit has a credit is important but it helps structure a way of thinking and problem solving that has enabled finance professional to navigate significant complexity and change since Luca Pacioli allegedly invented it in 1494.

And the case from 1893 – Carlill v Carbolic Smoke Ball Company