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The Influence of Buddhism on Accounting in Medieval China Michelle Yang Hong University of Wollongong

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The Influence of Buddhism on Accounting in Medieval China Michelle Yang Hong University of Wollongong University of Wollongong Research Online University of Wollongong Thesis Collection University of Wollongong Thesis Collections 2014 The influence of Buddhism on accounting in medieval China Michelle Yang Hong University of Wollongong Recommended Citation Hong, Michelle Yang, The influence of Buddhism on accounting in medieval China, Doctor of Philosophy thesis, School of Accounting, Economics and Finance, University of Wollongong, 2014. http://ro.uow.edu.au/theses/4213 Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: [email protected] School of Accounting, Economics & Finance The influence of Buddhism on accounting in medieval China Michelle Yang Hong "This thesis is presented as part of the requirements for the award of the Degree of Doctor of Philosophy of the University of Wollongong" August 2014 ABSTRACT The ‘alternative accounting’ movement since the mid-1970s inspired and enabled this study: to challenge the notion that accounting is value free and to understand accounting as a social and organisational practice. This study examines the relationship between Buddhism and accounting in historical China. Buddhism is a system of thought native to the Indian sub-continent and was introduced to China via the Silk Road. Buddhism, together with the mercantile spirit it brought, encountered, adapted to and conquered China. As a result, both were transformed. Buddhism became a force at all levels and in all spheres of society – culturally, politically and economically. Being interwoven into the social and historical fabric, accounting was inevitably influenced by this movement. Buddhist monasteries, being new institutions, brought a new rationale for the application of accounting and created a new rhetoric of accounting. Being reflective, monastery accounting reflected the unique environment in which it operated. So, the monastic accounts are a new ‘window’ enabling us to see a period of history: people and society – how they lived and how their lives revolved around the monasteries. Being constructive, monastery accounting as an integral part of the movement of Buddhism constructed a more complex notion of ownership, a central idea in accounting. Farmland, the most vital holding in an agrarian society, was transformed from a possession to use into a possession to exchange. This transformation led to a major tax reform, which subsequently entailed a change in accounting measurement in government accounting practice. i ACKNOWLEDGEMENTS This PhD has been a long march, so I am indebted to many people for helping me complete this journey. The first person is Professor Michael Gaffikin. Without his vision, inspiration and guidance, I would not have come this far. He kindly took me on as his student, generously shared his wisdom and gave me the freedom to explore and develop my intellectual potential. The second person is Doctor Kathy Rudkin. I thank her for her support in my lengthy candidature and especially her energy to get me over the final hurdles. Then, I express my gratitude to my parents for showing me to live a life with heart and soul. This spirit and attitude sustained me in this long pursuit. I am grateful to my father for nurturing me with thinking. He has been inspirational for being able to think independently and critically (and often with wit) in one of the most impossible of times and places (1950s and 1960s China). For him, I will retain my optimism in humanity. Last but not least, I am indebted to Brian, my wonderful man and kindred spirit, for making this journey possible, for accompanying me through it and for helping me ‘fly’. This thesis is also for my daughter, Dani, for generously sharing Mum with a ‘big sister’, the PhD. ii TABLE OF CONTENTS ABSTRACT .................................................................................................................. i ACKNOWLEDGEMENTS ......................................................................................... ii TABLE OF CONTENTS ............................................................................................ iii LIST OF FIGURES .................................................................................................. viii KEY DATES ............................................................................................................... ix CHAPTER 1 Introduction ............................................................................................ 1 1.1 An interdisciplinary and critical historical enquiry ...................................... 3 1.2 Structure of this study .................................................................................. 6 CHAPTER 2 Theory and methodology ..................................................................... 11 2.1 What do I hope to achieve? ........................................................................ 11 2.2 What new knowledge am I introducing? ................................................... 12 2.3 How am I going to do this? ........................................................................ 13 2.3.1 Buddhism ............................................................................................... 13 2.3.2 Buddhism coming to China .................................................................... 15 2.4 What theoretical framework for this study? ............................................... 21 2.5 Motivations of this study ............................................................................ 23 2.5.1 Personal feeling – a start ........................................................................ 23 2.5.2 Why Buddhism and accounting ............................................................. 24 CHAPTER 3 Religion, accounting and China: Previous studies ............................... 27 3.1 Introduction ................................................................................................ 27 3.2 Religion and accounting ............................................................................. 27 3.2.1 Accounting as a situated practice ........................................................... 28 3.2.2 Influences of religion in accounting ....................................................... 44 iii 3.3 Accounting history in China: The influences............................................. 59 3.3.1 Implicit argument ................................................................................... 60 3.3.2 Explicit argument and Confucianism ..................................................... 64 CHAPTER 4 The early background .......................................................................... 76 4.1 Introduction ................................................................................................ 76 4.2 Buddhism: Emergence, development and spread ...................................... 76 4.2.1 Theravada Buddhism: The doctrine of elders ........................................ 78 4.2.2 Mahayana Buddhism: The greater vehicle ............................................. 79 4.2.3 The role of Central Asia in the development of Mahayana Buddhism .. 80 4.3 China: The geographical setting ................................................................ 81 4.3.1 Boundaries ............................................................................................. 82 4.3.2 River divisions ....................................................................................... 83 4.3.3 Mountain barriers ................................................................................... 87 4.4 The Han Dynasty........................................................................................ 88 4.4.1 Historical background ............................................................................ 90 4.4.2 Society and economy ............................................................................. 96 4.4.3 Ideas – Political and religious .............................................................. 103 4.4.4 Imperialism – Relationship with ‘others’ ............................................. 113 4.5 Accounting in China prior to Buddhism .................................................. 120 4.5.1 The words for accounting 會計............................................................ 120 4.5.2 Accounting in the Zhouli 周礼 ............................................................. 122 4.5.3 Accounting related laws and regulations ............................................. 125 4.5.4 Accounting inscribed on wooden strips ............................................... 125 4.6 Conclusion ............................................................................................... 127 iv CHAPTER 5 The coming of Buddhism .................................................................. 129 5.1 Introduction .............................................................................................. 129 5.2 The social transformation ......................................................................... 130 5.2.1 Social transformation at the intellectual level ...................................... 133 5.2.2 Social transformation at the political level........................................... 136 5.2.3 Social transformation at the institutional level .................................... 139 5.3 Buddhism, monasteries and economy ...................................................... 142 5.3.1 Constructing monasteries – The effect on the economy ...................... 143 5.3.2
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