Chapter 1

Introduction

1.1 Background

This introductory chapter states the background of the research and the research
questions, the statement of problem and the rational of the study are also
included here. In total, this chapter offers an overview of the study. The focus
of this research study is Guided Principles of Accounting System of
Monasteries in Nepal. On giving a closer look, Buddhism percepts play a
significant role in each and every parts of society including living as well as
nonliving being of the universe and Accounting is not in exception. About 11
percent of Nepalese practice Buddhism and are mainly from Tibeto-Burman
ethnic groups like Sherpas, Tamangs and Bhotia people from the mountain areas
along the border with Tibet. In many areas, Hinduism has absorbed Buddhism
to a large extent, but the two religions have many shared deities and temples. In
Muktinath, the temple there is sacred for both Hindus and Buddhists. Though
most people in Nepal are Hindu, Buddhist influences are pervasive in most
aspects of Nepali culture. Tibetan Buddhism is the most widely followed and
the Newar Buddhists practice a particular Newar variant of Vajrayana
Buddhism and Theravada Buddhism. There are said to be over 1,200 Buddhist
temples in Nepal, some going back as far as 2,000 years.

As well as in the Kathmandu Valley, monasteries can be found in many of the

mountain districts that border onto Tibet to the north and India to the east.
There are many temples in Kathmandu, Patan and Bhaktapur. Many of the
main ones are found in Swayambhunath, Boudhanath and Charumati Vihara.
They are with a stupa design and are believed to go back about two thousand
years. Both Swayambhunath and Boudhanath are UNSECO World Heritage
Sites. Patan is the oldest city in Kathmandu Valley and there are at least 18
ancient Buddhist temples to be found including the Golden Temple, Ashoka

1
Stupas, Mahaboudha, Rato Machhendranath and so on. In Bhaktapur there are
also many Hindu and Buddhist temples, mostly built between the 14th and 18th
century.

Nepal is a country of amazing extremes, full of diversity and fascination of

religion. Basically, there are ten religions practiced in Nepal. They are Hinduism,
Buddhism, Islam, Kirat, Christianity, Prakriti, Bon, Jainism, Bahai and
Sikhism. The main religions followed in Nepal are Hinduism, Buddhism,
Islam, Kirat, and Christianity. As of the 2011 census, 81.3% of the Nepalese
population IS Hindu, 9.0% is Buddhist 4.4% is Muslim, 3.0% is Kirant/Yumaist,
1.4% is Christian, and 0.9% follow other religions or none religious.

Economic system is the backbone of society. And economy cannot possibly

operate without maintaining proper records of monetary transactions. It is
essential to keep a complete record of financial transactions so as to recall them
in the future. This necessity of human society fulfilled by a Franciscan monk
Luca Pacioli in the period of 1494 as 'Summa de Arithmetica, Geometria,
Propertione et Proportionalita (Everything about Arithmetic, Geometry and
Proportion). Pacioli used the term debito (owed to) and credito (owned by);
these word came from the Latin words deGo (meaning of which is 'owed to
me' i.e. to the proprietor) and credo (which means 'believe or trust). The term
'debit' and 'credit' used today have their origin from debito and credito. Pacioli
explained the double entry system stating that if one made creditor, someone
else should be made debtor.

Buddhism was founded by Siddhartha Gautama, who is also known as Gautama

Buddha. Gautama Buddha was born in Lumbini, Nepal in 563 BC. He was
born to King Suddodhana and Queen Maya Devi at the age of 29; he left his
family and worldly possession {or searching of the solution to the pain and
suffering in life. He struggled throughout, 'and at last while meditating

Under a 'Bodhi' (Peepal) tree in Gaya, he got enlighten that the 'root of all
sufferings 'desire and ignorance'. Then he became the Buddha, the enlighten one.

2
The lack of academic interest in studying accounting in religious institutions is
rather perplexing, given the prominence of such institutions in most historical
and contemporary societies, both spiritually and economically. In this
introductory article, we first address research with a historical focus and then
move on to study research on accounting and contemporary religious institutions.
Our review of the literature indicates that research in this area remains at an
embryonic state and that studies included in this special issue may contribute to
the literature on the sacred-profane divide as well as on forms of accounting and
accountability. This research concludes by identifying a number of research
areas that may attract the attention of scholars in the fields of accounting' and
accounting history.

Prof. Dr. Khadga Man Shrestha has written in his book Buddhism in Nepal-20
13 v o l p-l, titled the role of spirituality in society as "materialism, spiritual
materialism and spiritualism are the guiding forces of human life. All human
beings are moved by these forces. Every individual in society has his wants.
Some are moved by the materialistic wants while others are inspired by
spiritual materialistic wants. Only a few indulge in spiritual wants".

Almost all people of the world wants happy life but each and every society guide
them with against of this contentment because there is one factor that is
expectation or desire it follow the whole human being till death. Buddhism
deal with the spiritualism whereas accounting discipline connected with
materialism. The materialism preoccupy with or emphasis on objects, comforts,
and considerations, with a disinterest in or rejection of spiritual, intellectual, or
cultural values. The philosophical theory regards matter and its motions as
constituting the universe, and all phenomena, including those of mind. The belief
that the dead, surviving after the mortal life, can and do communicate with the
living, especially through a person (a medium) particularly susceptible to their
influence or the practices or phenomena associated with this belief. The belief, in
all reality is spiritual. The guiding force of present world is material and
exchange of material. Exchange means barter and barter is process of trade or

3
business. It involves production, distribution, purchases, sales and consumption.
Each and every stages at least two parties are involved and they are buyers and
sellers. The channel in which the people involved want to create surplus value
or gain with the aim of maximizing wealth or profit these whole activities are
called economic activity. Remembering all the transactions for a long period of
time with different persons and parties on a sequential manner is very difficult
so that the concept of double entry system and accounting process emerged in
human society. This research would specially like to link between Buddhism
and Accounting social disciplines because they are inter related and ethical in
nature

1.2 Statement of problem

Despite the confirmation that Buddhism and accounting are all encompassing.
and heating all aspects of social, economic , political, legal and cultural lives,
Buddhist perceptions on economic should be assessed in order to root out the
misappropriation of financial transactions and accountant pay more attention
while they are guided by Buddhism. The researches to date have general
consensus that the perpetual irregularities of monetary transaction. Buddhists
believe that if one correctly understands the interconnectivity of human behavior,
one will automatically see that many of the negative consequences of unethical
behavior will eventually come back to the perpetrator-Journal of Religion and
Business ethics -2014 Vol. -3.

Constitution of Nepal has defined Nepal as a "secular, inclusive and fully

democratic state" and as a "multiethnic, multilingual, multi-religious and
multicultural" country. All religions are equal in Nepal. The constitution has
provided us the right to religion. People can practice the religion of their choice
and like based on their customs, traditions, and norms. Nobody can be
discriminated on the basis of religion. According to the 2011 census, the
population is 26.5 million. Hindus constitute 81.3 percent, Buddhists 9 percent,
and Muslims (the majority of who are Sunni) 4.4 percent. Groups constituting

4
less than 5 percent of the population include Kirats (an indigenous religion with
Hindu influence) and Christians. Members of minority religious groups have
asserted that their numbers were significantly undercounted. Many Nepalese
adhere to a syncretism faith that encompasses elements of Hinduism, Buddhism,
and traditional folk practices and is not easily captured by the census data. The
National Churches Fellowship of Nepal reported that more than 1,000 Christian
churches operate in the country. Christian group’s state that the number of
Christians increased significantly over the past several years: as borne out by the
community's nearly three-fold increase over the past- International Religious
Freedom Report for. 2012 United States Department of State Bureau of
Democracy, Human Rights and Labor decade, from 0.5 to 1.4 percent of the total
population. According to a mosque official, there are at least 3,600 madrassas,
most of which are associated with a mosque.

Buddhism had its origin in the teachings of Siddhartha Gautama, a Kshatriya

caste prince of the Shakya clan; he was born in Lumbini in the central Terai
Region, about 563 B.C. His father was the ruler of a minor principality in the
region. Born a Hindu and educated in the Hindu tradition, Siddhartha Gautama
renounced worldly life at about the age of twenty-nine and spent the next six
years in meditation. At the end of this time, he attained enlightenment; thereafter,
known as the Buddha, or the Enlightened One, he devoted the remainder of his
life to .preaching his doctrine.

Religion is an aspect of culture and Buddhism is practiced as religion in the

world. This research is based on the issue whether a religion relates to
accounting, how it is related with accounting discipline and what has influenced
the development of accounting thought in social and cultural terms in Buddhists
monasteries of Nepal.

The subject of accounting as a situated practice and the subject of the influences
of religion on the development of accounting is the main domain of this research
so it begins with the examination of religion and accounting in Buddhist

5
monasteries of nation. Religion is an intrinsic part of the social and cultural fabric
in which accounting is practiced. It has been argued that there is a relationship
between religion and this practice that is culturally relative, socially contrived and
historically contingent-Aho 2005, p.xii. This argument echoes Hegel's. View on
the history of thought. He believed that truth and meanings do not exist in
isolation but in a context their relationship to other Hegel1977. This relationship
between religion and accounting has accounting practices, accountability
interpretation, and reflection in the value of religion when it is situated in
religious institution or society and influence of religion in accounting thought and
development.

Most of the literature focuses on the accounting as a situated practice in a

religious organization.

Laughlin completed his 'doctorate degree in 1988 in the dissertation topic of

accounting and religion. Perhaps he is the first person submitted this research for
the same degree. He explains that his research is driven by the lack of description
and analysis of the relationship of accounting to the social, despite the growing
awareness of the need to understand the technical practices of accounting in the
social contexts in which they operate. The selection that area was the Church of
England to examine this relationship and it has wider implications as quasi-
religious behavior lives on despite the secularization of society.

Laughlin-1988 first gives an introduction to the accounting systems of this

organization parish, diocese, the central board and the church commissioners. He
turns to the central dynamics of religious organizations. He starts from
Durkheim's 1916 division between the sacred and the profane, but it is Marcia
Elides work that mostly gives Laughlin insight in to the dynamics. These central
dynamics are communications with the gods in an institutional center with
defined boundaries and communications in the form of festival and myths which
were set in the early times of the faith to direct appropriate behavior. This central
dynamics have presented the rest of the analysis of the historical profile of the

6
Church. His finding was that the accounting has a part to play in the resourcing
issue but ultimately it is not part of the sacred agenda and must not interfere with
the more important spiritual endeavors communicating with god. At last, his
argument is changing of accounting or any other type in any organizations are
only possible within certain boundaries and only when major shifts occur in the
social context will more dramatic changes are possible. Buddhism and accounting
appears to be two totally different words. But without understanding the social
and cultural fabric that is woven through accounting it is difficult to understand
what accounting is. It is social, cultural and historical. The way of counting and
accounting are different as the needs are different in society in the process of
social evolution so that in different condition of society, cultures, period of time
in the way of accounting certain values and norms were emphasized while certain
values are ignored. This is how cultures, societies and history influence
accounting. Once a certain way of accounting is established this partial stand on
values became norms. How and when accounting starts to influence culture,
societies and history. Accounting as per of the status quo trims off anything that
is abnormal. Foucault-1977 argued that normalization, punishment and discipline
process of society is powerful process because these are invisible. The numerical
appearance of accounting adds another layer on the invisible. The idea that
numbers are neutral, scientific and value free are the socially created
understanding. The perception of accounting being natural scientific value free
makes accounting extra powerful when it is used to exercise punishment and
discipline.

Making it visible Buddhist perspective application is one of the most powerful

tools to study and examine accounting in its social fabric and ethical behavior to
make it more meaningful. Introducing new knowledge, achievement of the study,
theoretical framework, and review of literature to this study research methods,
structure of the study, findings and conclusion are presented for the thesis
dissertation. According to Binaya Ghimire -2013, Buddhist Temples and
Monasteries in Nepal. Most of the ancient Hindu and Buddhist temples in Nepal

7
are located in Kathmandu valley. Kathmandu, the capital city of Nepal, is in
'Kathmandu valley. Since ancient time, Kathmandu valley has become a Centre
for Hindu and Buddhist studies and worshiping. There are three major cities
Kathmandu, Patan and Bhaktapur in Kathmandu Valley.

Swayambhunath Stupa, Boudhanath Stupa and Charumati Vihara are the main
Buddhist temples in Kathmandu. These Buddhist temples with Stupa design are
believed to be about two thousand years old. Swayambhunath and Boudhanath
are UNSECO World Heritage Sites, and Charumati Vihara is named after the
daughter of King Ashoka of India.

Patan is the oldest city in Kathmandu Valley. Around 249 BCE, Indian King
Ashoka visited Kathmandu valley with his daughter Charumati. Charumati and
Ashkoa built five Buddhist Temples in Kathmandu Valley, of which four are in
Patan and one is in Kathmandu. At least 18 ancient Buddhist temples are located
in Patan. Some of the major Buddhist Temples in Patan are: The Golden Temple,
Ashoka Stupas, Mahaboudha, Rato Machhendranath etc.

There are numerous Hindu and Buddhist Temples in Bhaktapur. Most of the
Hindu and Buddhist Temples in Bhaktapur were built in 14 th through 18th
century. The city of Bhaktapur is still preserved in its medieval structure.

The Buddha was born in Lumbini. Lumbini is 26 km east from Nepal-India

boarder at Sunauli and about 300 km west of Kathmandu. The exact spot where
the Buddha was born is protected inside Maya Devi Temple in Lumbini. The
current Maya Devi Temple, which was opened for the public in 2003, houses the
ancient Maya Devi Temple built in the 3rd century BCE. In the recent
excavations, it has been found that human settlement in Lumbini the Birthplace of
the Buddha goes back to 1300 BCE. The result of three years excavations jointly
carried by the UNESCO and the Government of Japan unearthed pre- Buddhist
structures near Maya Devi Temple in Lumbini. The earliest record of the

8
historical Buddha is the stone pillar erected by King Ashoka in 249 BCE.
However, the new excavations have unearthed temples that are older than
Ashokan Pillar.

The main aim of this research is to show the relationship between accounting and
Buddhism specially focused on Nepalese monasteries accounting system and
impact of Buddhism on it.

1.3 Objectives of the study

The general objective of this study will be to assess impact of Buddhism in

monasteries accounting system. This research will concentrate on achieving
following objectives;

 To determine inter-disciplinary historical inquiry between accounting and

Buddhism

 To describe the sources and uses of funds in Monasteries

 To find out Accounting process of Monasteries

 To compare between government policies

1.4 Significance of the study

The expectation of a researcher is that the outcome of the research will be

important to fill the gaps of knowledge on the inter-disciplinary aspects of the
relationship between accounting and Buddhism. Despite having academic
importance this study will be useful to the policy makers, planners, administrators
and the· instructions devoted for elimination of accounting errors and frauds. The
research will be carefully made to unveil the true response from monks, nuns,
management committee and concerned persons witnessing the actual position of
funds and financial policies of monasteries of Nepal that which will possibly

9
make the research outcome valuable. The research will be helpful to remove the
state of being ignorant of financial irregularities in the monasteries as well as
other organizations.

1.5 Conceptual frameworks

As the culture develops and modernizes, particular issues arise in regards to

religions. When challenges arise, it is important to study and understand how
each religion will resist or change to the pressure. This paper will examine the
similarities of Buddhism to other religions to find common themes or
characteristics. Then, different ways the Buddhism is responding to the changing
needs of the modem world will be explained. Finally, book keeping, accounting
roles and impact of Buddhism on accounting and how it will be applied in the
field of financial as well as accounting field will be explored in this research.

There are several types of accounting Generally Accepted Accounting Principles

(GAAP) provide the rules for the preparation of the accounting statements, in the
form of concepts, conventions, assumptions and principles. It not only removes
confusion but also provide consistency and uniformity in the process. These are
the fundamental assumptions, on which the entire system of accounting is based.
Following figure represents the branches of modern accounting.

10
Financial Accounting: It is that branch of accounting, which involves the
recording of the transactions, inclined towards the preparation of trial balance and
final accounts.

Cost Accounting: Cost account is the accounting discipline, which deals with
costs, i.e. the unit costs of the goods produced and services provided. It helps the
management of the organization in fixing the price, controlling costs and
providing relevant information for the purpose of decision making.

Management Accounting: The accounting system which supplies the necessary

information to the management, for rational decision making. The information
may be concerned with funds, costs, profits and losses and so forth. This
information is helpful in determining the effect of the decisions and analysing the
performance of the entity.

Tax Accounting: The accounting system that deals with the tax return and its
payment, instead of preparation of final accounts of the enterprise, is called tax
accounting.

Social Accounting: This branch of accounting is commonly termed as social

responsibility accounting. It aims at unveiling the facilities provided by the entity
to the society, in terms of medical, housing, education, and so forth.

These accounting branches have been developed as a result of rapid economic

development and technological improvements that increased the company’s scale
of operations. Due to this very reason, the management functions has become
complicated and resulted in the development of branches.

Accounting shows a financial picture of the firm. In general, accounting is

concerned with keeping financial records, recording income and expenditure,
valuing assets and liabilities, and so on. An accounting department records and
measures the activity of business. It reports on the effects of the transactions on

11
the firm's financial condition. Accounting records give a very important data. It's
used by management, stockholders, creditors, independent analysts, banks and
government. Recording and treating the above transactions with mindfulness
percepts according the Buddhists doctrine demonstrate highly trustful in society.

Probably there are two major questions that the managers or owners of the
business want to know: first, whether or not the business is operating at a profit,
second, they will want to know whether or not the business will be able to
meet its commitments as they fall due; and so not have to close down owing
to lack of funds. Similarly, in monasteries, whether the funds received from the
different sources through various devoted donors and individuals will able to
meet the requirements of the monks, nuns, staffs and other concerned parties or
not? Both of these questions should be answered by the use of the accounting
data of the monasteries.

The most common accounting which records assets at their original purchase
price minus accumulated depreciation charges as per established rules and
regulation. In times of inflation, this underestimates the value of appreciating
assets such as land, but overstates profits as it doesn't record the replacement
cost of plant or inventory. The value of a business's assets under historical cost
A. Purchase price minus depreciation is known as net book value. Countries
with persistently high inflation often prefer to use current cost or replacement
cost A., which values assets (and related expenses like depreciation) at a price
that would have to be paid to replace them today.

1.6 Limitation of the study

The limitations of the study are those characteristics of design or methodology

that impacted or influenced the interpretation of the findings from research
localities. They are the constraints on generalization and applications to practice,
and utility of findings that are the result of the ways in which researcher initially
chose to design the study and the method used to establish internal and external
12
validity. This thesis proposal is prepared to determine the guided principles of
accounting system of monasteries in Nepal. Although the accounting procedures
of preparing financial statement is similar in all the organization but the sources
and applications of funds may be vary. In general fund raising technique of
trading concerns and the monasteries are different so that this research work is
not necessarily applicable all the field or branches of account however the
conceptual frame of this relation and implacability of religion in economic
activities will useful for all the accountants, financial managers, planners,
government policy makers and other concerned parties for decision making
process. The study will be conducted within the limited area such as monasteries
of Kathmandu valley and finding will based on the study from the monasteries.
The findings of this research cannot be generalized to all countries of the world.
The study will be mostly based on survey, focus group and key informant
interview. Due to changeable time of socio-cultural life, the findings of the, study
will not be applicable, forever.

13
 Chapter2

Literature reviews

This section presents the findings of earlier research especially accounting and
Buddhism in different parts of the world to provide strong basis of arguing as per
the research objectives. In 2013 Michelle Yang Hong, university of Wollongong
published "The Influence of Buddhism on accounting in Medieval China" and the
George Asoka Liyanarachchi, Department of accounting, university of Sri
Jayewardenepura, Sri Lanka published" antecedents of double-entry book-
keeping and Buddhist" temple accounting in 2014" as the earlier research work.
Likewise, "Guided Principles of Accounting System of monasteries in Nepal" is
the title of this thesis and it can be claimed that this research will be more useful
to the people as well as organization for further planning and decision making to
achieve the specified goal in an ethical manner. This section will be divided into
chronological, thematic, methodological and theoretical literature review.

The simplest approach is to trace the development of the topic over time.
However, if you choose this strategy, be careful to avoid simply listing and
summarizing sources in order. Try to analyze patterns, turning points and key
debates that have shaped the direction of the field. Give your interpretation of
how and why certain developments occurred.

Chronological literature review

A chronological literature review describes each work according to when they

were published, starting with the earliest available information. Considering this,
assess if you can divide the chronological review into subsections for each vital
time period. In the methods section of the review, group together the sources in
order of their publication date.

14
Historical and time series data are analyzed on the basis of date according to
scientific and systematic manner of both accounting as well as Buddhism
percepts in Nepal.

Themes literature review

On getting some recurring central themes, it can be organized literature review
into subsections that address different aspects of the topic.

For example, reviewing literature about accounting and Buddhism in different

aspects, key themes are collected, language barriers, cultural attitudes, legal
status, and economic access.

Methodological review
On collecting sources of information from different disciplines or fields that are
used as variety of research methods, it can be compared the results and
conclusions that emerge from different approaches. For example:

 What results have emerged in qualitative versus quantitative research

 How the topic has been approached by empirical versus theoretical
scholarship
 the literature are divided into sociological, historical, and cultural
sources

15
Theoretical literature review

A literature review is often the foundation for a theoretical framework. I will use
it to discuss various theories, models, and definitions of key concepts. I might
argue for the relevance of a specific theoretical approach, or combine various
theoretical concepts to create a framework for my research. In this review I will
review theoretical perspectives of Buddhism, business, economics and accounting
principles to make it more meaning full and reliable to support this research work.

A review of recent business ethics literature shows that there are attempts to
broaden the discourse on ethics by drawing from various religious perspectives.
The aim of this paper is to extend the relevance of religious perspectives on ethics
by exploring Buddhist ethics and its implications for ethics in accounting. The
paper expects to make several contributions. Firstly, it introduces an important
body of knowledge into accounting ethics literature, which has the potential to
enhance the dialogue on ethical issues in accounting affairs. Secondly, it
encourages an appreciation of differences in the social and moral beliefs of
different people. Given the global nature of modern business and accounting
affairs, such an appreciation is critical for moving towards harmonious
perspectives on ethics in business and accounting. Finally, by exploring Buddhist
ethics, the paper offers intellectual and ethical arguments to challenge the
relentless pursuit of growth by businesses and, more importantly, accounting role
in legitimizing such pursuit.

Accountancy Business and the Public Interest, Vol. 7, No.2, 2008 121 ethics,
there is a clear absence of work addressing the relevance of Buddhist ethics to
business and accounting. For example, a review of the contents of the Journal of
Business Ethics (JBE) during the last decade (from 1997 to 2006) shows that
many authors have based their work on a religious perspective. These studies
have drawn from the perspectives on Christianity (Rodgers and Gago 2006;
Ibrahim and Angelidis, 2005; Lam and Hung, 2005; Enderle, 1997), Catholicism
(Mc. Gee, 2006; Marens, 2005; Bowes, 1998; Mc Kenna, 1997), Judaism (Pava,

16
1998), and Islam (Rice, 2006; Beekun and Badawi, 2005; Saeed, et al., 2001;
Naughton and Naughton, 2000; Rice, 1999). It is noteworthy that during the same
period no study in JBE has attempted to articulate the relevance of Buddhism to
business ethics. A similar examination of the work of an accounting journal, with
a specific commitment to promoting inter-disciplinary research - Accounting,
Auditing, and Accountability Journal (AAAJ) - also shows that no study on
Buddhist views on ethics has been published during the last decade. The absence
of work addressing Buddhist ethics in business and accounting literature is
significant for several reasons. Firstly, it leaves out an important body of
knowledge that has the potential to enhance the dialogue on ethical issues in
business and accounting affairs. This is important as there are claims that
currently ethics discourse in accounting is severely impoverished. For example,
Williams (2004, p 998) writes: " ... the discourse of accounting (the extant
paradigms) in the houses of higher learning where accountants are being taught,
have eradicated from its vocabulary any language capable of allowing us to
discuss whether what happened with Andersen was behavior that might be
construed as morally wrong". Secondly, the absence of a focus on Buddhist ethics
is problematic, as there are millions of people around the world whose ethical
views and responsible behavior are shaped by the teaching of the Buddha. For
example, Buddhism is found in many parts of the world and there are about 376
million Buddhists in the world (www.adherents.com, 2005). The Buddhist views
towards ethics Accountancy Business and the Public Interest, Vol. 7, No.2, 2008
122 therefore must be explored so that these too represent and contribute to
discussions on ethics in business and in accounting. Thirdly, given the global
nature of modem business and accounting affairs, an appreciation of differences
in the social and moral beliefs of different people is critical for moving towards
harmonious perspectives on ethics. Finally, the Buddhist views on ethics provide
much needed arguments to challenge the relentless pursuit of profit and growth
by businesses and the role of accounting in legitimizing such pursuit. As pointed

17
out eloquently by Joni Young, the corporate scandals which unfolded in the early
2000 show that such scandals are unavoidable unless we challenge the wisdom of
limitless consumption and pursuit of material comfort at all costs (Young, 2905).
A Buddhist perspective on ethics is useful to raise such challenges. 'For example,
relentless pursuit of 'more growth, more profit, more consumption', from the
perspective of Buddhist ethics is a result of both' cognitive and non-cognitive
errors in our conceptualization of good life. The aim of ibis paper is to explore the
relevance of a Buddhist perspective on ethics to the literature on accounting
ethics. The specific purposes of the paper are threefold. It aims firstly to describe
the conception of reality in Buddhism and secondly to discuss ethics in
Buddhism. Lastly, it aims to provide a discussion on the relevance of Buddhist
ethics to accounting. The remainder of the paper is organized into three parts. In
the first part the Buddhist conception of reality is briefly discussed. This includes
discussions on the nature of dependent arising phenomena, the law of Kamma
(Sanskrit- karma), and the Noble Eightfold Path that guides one from sarnsara to
Nirbbana. The nature of Buddhist ethics is discussed in part two. This begins with
an identification of the Buddhist moral principle, theories of actions, and the issue
of not-self doctrine and its implications on recognizing responsibility for
individual actions. A brief discussion on the relevance of Buddhist ethics to
accounting is provided in part three. Finally this essay ends with a summary and
conclusion.

"The Assaliiyana Sutta points out that a priest, a nobleman, a merchant or worker
are subject to karmic recompense equally irrespective of their status" (Jayatilleke,
2000, p. 38; see Majjhima Nikiiya, Niinamoli and Bodhi, 2001, pp. 763-770).

"Everyone will admit that all the evils in the world are produced by selfish desire.
This is not difficult to understand. But how this desire, (thirst' can produce re-
existence pnd re-becoming (pono-bhavika) is a problem not so easy to grasp
(Rahula, 1978, p. 30)."

18
"Kamma is not a form of determinism about actions. Though a person's current
state of well-being is always a causal function of his or her past Accountancy
Business and the Public Interest, Vol. 7, No.2, 2008 127 actions, what a person
does at a given time is not determined by past actions. ... the Buddha thinks we
are always free to choose the morally better or worse course. Since these choices
affect our future wellbeing, it is always in our power to improve or diminish our
future happiness, and to achieve ultimate happiness through enlightenment"
(Gowans, 2003, p. 105).

"It is by reason of conduct not in accordance with the Dhamma, by reason of

unrighteous conduct that some beings here, on the dissolution of the body, after
death, reappear in states of deprivation, in an unhappy destination, in perdition,
even in hell ''. Conversely "it is by reason of conduct in accordance with the
Dhamma, by reason of righteous conduct that some beings here, on the
dissolution of the body, after death, reqppear in a happy destination, even in the
heavenly world" (Majjima Nikkaya, cited in Gowans, 2003, p. 104).

"According to Buddhism for a man to be perfect there are two qualities that he
should develop equally: compassion (koruna) on one side, and wisdom (Pannii)
on the other. ... If one develops only the emotional neglecting the intellectual, one
may become a good-hearted fool; while to develop only the intellectual side
neglecting the emotional may turn one into a hard-hearted intellect without
feeling for others" (Rahula, 1978, p. 46).

"This is a sad misconception ... The I(uddha's teaching is meant not only for
monks in monasteries, but also for ordinary men and women living at home with
their families. The Noble Eightfold Path, which is the Buddhist way of life, is
meant for all without distinction of any kind" (Rahula, 1978, p. 76).

"Right Livelihood" is one of the requirements of the Buddha's Noble Eightfold

Path. It is clear, therefore, that there must be such a thing as Buddhist

19
economics" (Schumacher, 1973. p. 53).

"Right speech means abstention (1) from telling lies, (2) from backbiting and
slander and talk that may bring about hatred, enmity, disunity and disharmony
among individuals or groups of people, (3) from harsh, rude, impolite, malicious
and abusive language, and (4) from idle, useless and foolish babble and gossip"
(Rahula, 1978, p. 47).

"It should be realized that the Buddhist ethical' and moral conduct aims at
promoting a happy and harmonious life both for the individual and for society.
This moral conduct is considered as the indispensable foundation for all higher
spiritual attainments. No spiritual development is possible without this moral
basis" (Rahula, 1978, p. 47).

"There are, householder, these four kinds of happiness which may be achieved by
a layperson who enjoys sensual pleasures, depending on time and occasion.
What four? The happiness of possession, the happiness of enjoyment, the
happiness of debtlessness and the happiness of blamelessness" (Anguttara
Nikaya, Nyanaponika and Bodhi, 2000, p. 99).

"For the mundane person the pursuit of material gain was deemed to be
compatible with the good life, provided the" wealth was gained by just means and
the wealth so acquired was spent for one's good as Accountancy Business and the
Public Interest, Vol. 7, No.2, 2008 137 well as the good of others without
squandering or hoarding it" (Jayatilleke, 2000, p. 50).

Rahula (1978, p. 82) writes: "First: he should be skilled, efficient, earnest, and

energetic in whatever profession he is engaged, and he should know it well

(utthana-sarnpada); second: he should protect his income, which he has thus

earned righteously, with the sweat of .his brow (arakkhasampada); third: he

should have good friends (kalyana-mitta) who are faithful, learned, virtuous,

liberal and intelligent, who will help him along the right path from evil; fourth; he
20
should spend reasonably, in proportion to his income, neither too much nor too

little, i.e., he should not hoard wealth avariciously, nor should he be extravagant-

in other words he should live within his means (samajivikata)".

"Four other things lead to a family man's welfare and happiness in the future life.
Accomplishment in faith, virtue, generosity and wisdom" (Anguttara Nikiiya,
Nyanaponika and Bodhi, 2000, p. 222).

Rahula (1978, p. 81fwrites: "Buddhism does not consider material welfare as

anend in itself. it is only a means to an end-a higher and nobler end. But it is a
means whicb is indispensable, indispensable in achieving a purpose for man's
happiness ''.

"... the Buddha considered economic- welfare as requisite for human happiness,
but that he did not recognize progress as real and true if it was only material,
devoid of a spiritual and moral foundation. While encouraging material
progress, Buddhism always lays emphasis on the development of the moral and
spiritual character for a happy, peaceful and contented society" (Rahula, 1978,
p. 84).

"[With Buddhism] there emerged for the first time in Indian history the
conception of a universal good embracing the whole of mankind. This. Universal
good was conceived of not only as spiritual welfare but as material welfare as
well" (Jayatilleke, 2000, p.49)

Chwastiak and Young (2003, p. 533) call 'silences in annual reports', and
legitimizes the language of profit maximization, accounting plays a crucial part in
prolonging wealth and power disparity in society. The Buddhist ethics and its
implications for economic thinking, therefore, are relevant to a discourse on
accounting ethics for it enables new questions to be raised about the nature and
purpose of accounting. For instance: Can accounting, from an ethical point of

21
view, maintain its claims to impartiality and objectivity by remaining oblivious to
the nature of business activities and their implications for the welfare of people?
Can accounting confine its focus to economic activities and their results, and yet
continue to claim to serve the interests of society?

The Buddhist concept of 'right action' involves those actions that promote one's
welfare as well as that of others. In other words the focus is on mutual self-
interest, as opposed to self-interest. In Buddhism, the meaning of society itself is
given as mutual self-interest (Kalupahana, 1995, p. 135). However, when
communicating results or helping to identify right decisions (actions), accounting
ignores all interests in favour of those of profit maximization. For example,
Chwastiak and Young (2003, p. 533) write: "Corporate annual reports are filled
with accounts which celebrate corporate actions such as acquisitions, downsizing,
spin-offs, globalization, increased market share, new and innovative technologies,
outsourcing and the reduction of labor costs ... Each of these strategies is justified
in terms of increased profits, irrespective of the consequences to others or the
environment" From a Buddhist perspective on ethics, the right action must
include a serious and explicit consideration of the interests of society, i.e., mutual
self-interest. Related to the notion of right action, it is also' recognized in
Buddhism that one must conduct one's affairs, both private and social, not only
with a sense of duty but also with a sense service: love and understanding. This
challenges any attempt to justify not making difficult choices when these choices
are in line with the spirit but not necessarily with the letter of rules. Thus,
according to Buddhist views on ethics. Professional judgments in accounting
cannot be subordinated or avoided. The subordination of judgment (client-bias in
accounting judgment) and attempts to avoid judgment (compliance with rules to
the letter) are two main criticisms accounting professionals confront today. These
are clearly unethical from the perspective of Buddhist ethics.

Additionally, to appreciate the relevance of Buddhist ethics to accounting,

perhaps it is also necessary to re-visit the ideas of influential economists in the
last century. Consider the following plea of Lord Keynes: "For at least another
22
hundred years, we must pretend to ourselves and to everyone that fair is foul and
foul is fair; for foul is useful and fair is not. Avarice and usury and precaution
must be our gods for a little longer still" (cited from Schumacher 1973. p. 100).

According to Kalupahana (1995), this appears to dominate the modem

philosophical thought in the West. He writes: "... modem philosophers generally
have distinguished the moral life from the good life ... They are made to be so
incompatible that if one were to have a good life one would have to sacrifice
morals, and if one were to be moral one would have to abandon the good life"
(Kalupahana, 1995, p. 119). Yet such a separation is difficult to justify from the
perspective of Buddhist ethics. The requirement of the noble eightfold path
is to simultaneously develop morality and wisdom. This recognizes the difficulty
of separating the 'right thing' and 'good person' or separating behavior into
economic and private. This holistic approach is familiar in the ancient Western
thinking as well, for Aristotle too defines 'the highest good' in a pluralistic
manner. For. Aristotle, the highest goods or summum bonum is eudaemonia and
it cannot be reduced to a single or a dominant end (Keown, 2001). As cited in
Keown (2001), '''Eudaemonia', says Aristotle, 'is composed of certain good things
... it is nothing else besides these, it is these' (Magna Moralia, 1184a 26-29, cited
in Keown, 2001, p. 202). Therefore, for Aristotle human action is 'goal directed'
and his aim is to identify the final goal, which consists of more than one thing, so
human action can be guided towards it (Keown, 2001). Describing what Aristotle
meant by eudemonia, Keown (2001, p. 199) writes: "It will not involve the
random pursuit of multiple goods (a plurality of first-order ends), nor even one
particular good amongst others (a dominant end). Rather it will include a number
of good things ... in harmonious combination: this is how we are to understand
eudemonia or human flourishing".

Similarly, though the aim of Hellenistic philosophy is to "enable human beings to

achieve eudemonia, commonly translated as happiness, flourishing or well-
being", its influence on Western philosophy has dwindled in the twentieth century
(Gowans, 2003, p. 43). These show that a separation of this kind has not rested

23
well even with the ancient Western philosophy. Thus, it appears that a separation
of good life and morals (and economics and morals) appears to bedominant in the
philosophical thought in the West not throughout its history but mainly a new
phenomenon that gained credence in the twentieth century. The widening gap
between economics and ethics however continues to attract strong criticisms (see
Sen, 1987).

This paper extends the use of religious perspectives on ethics by introducing a

Buddhist perspective into the literature of business and accounting ethics.
Accordingly, it discusses the Buddhist conception of reality and its relation to
ethics, and finally, all attempt is made to relate Buddhist ethics to the discourse
on ~ethics in accounting. The primary emphasis of Buddhism is on changing the
individual by perfecting his/her virtues or morality and wisdom as opposed to
changing the society. This focus on the individual in Buddhist ethics is useful for
professions such as accounting for several reasons. Firstly, major corporate
collapses that also implicate accounting and its gate keeping role show that there
is no substitute for personal integrity, no matter how sophisticated the control
systems are, for preventing such collapses. Secondly, accounting makes
ideological claims about professionalism and ethical commitment of its members,
thus highlighting the need for individual members to develop such strong
commitment to ethics.

A definition of the term ethics given in the Webster's Dictionary reads ''the
philosophical analysis of human morality and conduct". A recent work describes
ethics as follows: "Ethics is that part of philosophy which is concerned with
living well, being a good person, doing the right thing, getting along with other
people, and wanting the right things in life" (Solomon, 2006, p. 3). Thus, ethics
involve the study of human morality and conduct which leads to answers to
questions such as what is "the right thing" and what constitutes "a good person".
Introducing his detailed work on the nature of Buddhist ethics, Damien Keown
writes: "In the face of the complexity of Buddhist metaphysics it is easy to lose

24
sight of the fact that Buddhism is a response to what is fundamentally an ethical
problem - the perennial problem of the best kind of life for [one] to lead"
(Keown, 2001, p. 1).

As much as there is agreement that ethics involve finding answers to these

common questions, there are significant differences amongst the answers. This is
because there are numerous theories that define the meaning of 'right thing' and
'good person' in their own way. The Buddhist view on ethics is no exception. The
highest good in Buddhism is Nibbana (Sanskrit - Nirvana) and the right thing is
to strive towards the highest good. The Buddha also recommended the path to
Nibbana, known as the noble eightfold path. The noble eightfold path contains
clear 'guidance for one's conduct in affairs, be they spiritual, social, or business
(or livelihood) so, that one's conduct is in harmony with the noble eightfold path.
Morality is an integral part of the path and the nature of the Buddhist ethics
becomes clearer when one explores the requirements of the noble eightfold path.

There are different theories propounded in the area of social sciences. Theory
means different I things to different people. Its role in research and case study
research in particular can be better understood on recognizing, how theory is
being defined and what type of theory referring to-Merriam, 1988, p.57. A theory
establishes a cause and effect relationship between variables for the purpose of
explaining and predicting the phenomena-Best and Kahn, 2004, p.9. Following
are the theories that reviewed in consideration of their relevancies to this study.

Although the details of this, and other codes, is interesting, the primary concern
here is with theoretical considerations. To this end some elements of these
statements are important, for example, what is meant by the term profession and
what is the public interest and ho~ does the imposition of codes of behavior relate
to the discussion of regulation in previous working papers? In addition, the Code
claims to have set out a "conceptual framework" (for determining ethical

25
behavior) - what are its elements? It is interesting to note that the Code requires
members to not only comply with the terms of the Code but with the spirit of the
code - how is this achieved?- A more "practical" orientation is taken in AAA
(1990) which presents a so-called "a model of decision-making"; this is discussed
by Dellaportas, (2005).

There is little doubt that the general public concern about ethical issues has
impacted on business practices. Most professional bodies have some form of
ethical statement In respect of the operations of their organizations. Professional
accounting bodies usually have codes of ethics with which they expect their
members to comply. These have changed over the years from statements
governing how members interacted with other members to ones with a greater
attention to ensuring that members' behavior complies more with perceived
public expectations. Members' involvement with large corporate collapses ansi
fraud scandals obviously reflect badly on the profession, the vast majority of
which do not become embroiled in such matters.

The primary emphasis of Buddhism is on changing the individual by perfecting

his/her virtues or morality and wisdom as opposed to changing the society. This
focus on the individual in Buddhist ethics is useful for professions such as
accounting for several reasons. Firstly, major corporate collapses that also
implicate accounting and its gate keeping role show that there is no substitute for
personal integrity, no matter how sophisticated the control systems are, for
preventing such collapses. Secondly, accounting makes ideological claims
about professionalism and ethical commitment of its members, thus highlighting
the need for individual members to develop such strong commitment to ethics.

The notion of professional body codes of ethics is inextricably linked to the

notion of professionalism. Parker (1987) has shown that as professional
accounting bodies in Australia developed so too did ethical rules for accountants -

26
they were a part of the professional bodies' requirements on members. Late in the
twentieth century the two major professional accounting bodies in Australia (CPA
Australia and ICAA) developed a Joint Code of Professional Conduct. This was a
set of ethical requirements common to both professional bodies. However, with
the growing internationalization of accounting regulation it is intended that the
Joint Code be replaced by a Professional Standard, APES 110 Code of Ethics for
Professional Accountants. This emerged as a requirement of the International
Federation of Accountants (IFAC). Members (national professional bodies) are
not permitted to issue ethical requirements Jess stringent than-those proposed by
IF AC, so, similar to accounting standards (IFRS), the Australian professional
accounting bodies have adopted the IFAC statement as that for the Australian
bodies (with some very minor differences being clearly indicated with the letters
AUST)- The implementation has been the responsibility of The Accounting
Professional & Ethical Standards Board Limited (APESB) a body initially set up
jointly by CPA Australia and the ICAA but later joined by the National Institute
of Accountants (NIA).

In his speech to the Yale Club in New York City on September 4, 2002, AICPA
President Barry Melanchon stated that the accounting profession must restore its
most priceless asset: its reputation. He said that the professions leadership must
act to preserve a legacy of honor and integrity for future generations of CPAs.
The profession must build upon its traditional values such as rigorous
commitment to integrity.

All people have some inner understanding of what constitutes ethical behavior
but when it comes down to defining ethics this is found to be extremely
problematic as it is shaped by personal, cultural, societal and professional values
all of which are difficult to specify. Some people will stress the importance of the
society's interests others will stress the interests of the autonomous individual.
These conflicting viewpoints have dominated discussion of ethics for a long time.
27
Most are agreed that ethical belief systems emerge from a community - a social or
cultural context or what Blackburn has called "the surrounding climate of ideas
about how to live" (2001. p l).

A review of business ethics literature shows that there are attempts to broaden the
discourse on ethics by drawing from 'various religious perspectives. This shows
an important direction for research on ethics, as people's conception of reality has
an important relation to the way they conceive ethics and ethical behavior and, a
significant tension will result when there is a lack of congruence between these.
This paper extends the use of religious perspectives on ethics by introducing a
Buddhist perspective into the literature of business and accounting ethics.
Accordingly, it discusses the Buddhist conception of reality and its relation to
ethics, and finally, an attempt is made to relate Buddhist ethics to the discourse on
ethics in accounting.

Policy review

In policy review I will present the legal policy of religion and accounting system of
Nepal government. In Nepal there are varies rules, regulations, guidelines and policies
regarding economic activities, misappropriation, abuse of authority, fraud and so on.
Nepal accounting standard board, office of the comptroller general, ministry of trade and
commerce and ministry of finance are some examples of rule maker’s originations in
this country. These institutions policies are reviewed and linked with accounting system
and Buddhism to justify the research work of Guided Principles of Accounting System
in the Monasteries of Nepal.

28
 Chapter 3

Research methods

3.1 Rationale of the selection of the study area

The rationale of my research is the reason for conducting the study. The
rationale should answer the need for conducting the said research. It is a
very important part of my publication as it justifies the significance and
novelty of the study. That is why it is also referred to as the justification
of the study. Ideally, my research should be structured as observation,
rationale, hypothesis, objectives, methods, results and conclusions.

It is important for me to be able to explain the importance of the research I

will conduct by providing valid arguments. Rationale for the study needs
to be specific and ideal.

3.1.1 Population and Households

CBS-20l1 shows population of Nepal as of the census day (June 22,

2011) stands at 26,494,504 showing population growth rate of 1.35 per
annum. Similarly, Total number of households in the country is
5,427,302 with 5,423,297 individual households and 4,005 institutional
households (Barracks, Hostels, and Monasteries etc.). However, 8
monasteries and all the members involved to achieve the specific goal or
target in the respective monasteries such as monks, nuns, students,
teachers and administrative staffs with management committee members
will be selected as population and household for this research work.

3.1.2 Religion

29
There are ten types of religion categories reported in the census.
Hinduism is followed by 81.3 percent (21,55IA92) of the population while
Buddhism (9.0%; 2,396,099), Islam (4.4%; 1,162,370), Kirat (3.1%;
807,169), Christianity (1.4%; 375,699), Prakriti (0.5%; 121,982), Bon
(13,006), Jainism (3,214), Bahai (1,283) and Sikhism (609). This research
has been done in monasteries of Kathmandu valley. Out of total
monasteries the study will based on the following;

No of Monasteries Selected for the research

SN Monasteries

1. Shechen Monastery Boudha.

2. Khawalung Monastery, Boudha-Sirnaltar.

3. Kopan Monastery, North of Boudhanath.

4. Thrangu Monastery, Boudha, Nepal.

5. Dilyak Monastery, PO Box No. 4512, Boudha, Kathmandu.

6. Pullahari Monastery & Retreat Centre, P.O. Box 11015, Jagdol.

7. Khachoe Ghakyil Ling Nunnery (The Kopan Nunnery).

8. Ka-Nying Shedrub Ling Monastery, North of Boudha, Nepal.

3.2 Introduction of selected monasteries

According to Culture & Tradition, 16 April, 2015, inside the Himalaya,

there are said to be over 1,200 Buddhist temples in Nepal, some going
back as far as 2,000 years. As well as in the Kathmandu Valley,
monasteries can be found in many of the mountain districts that border
onto Tibet to the north and India to the east.
In the city of Kathmandu, the stupa at Boudha is the largest Buddhist
temple in Nepal and one of the largest stupas in the world. Another of

30
Kathmandu’s five World Heritage Sites, the original site of Boudha’s
stupa is said to be at least two thousand years old. Most historians believe
that the current stupa was built sometime in the 7th century. One of the
most sacred Buddhist temples in Nepal, the stupa is a huge dome structure
with a gilded spire with Buddha’s eyes painted on the base and a brass
canopy on the top. The relics of Kashyap Buddha, one of the mythical
Buddhas, is said to be enshrined there. There are also about 50 Buddhist
monasteries in and around Boudhanath.
Just north-west of Boudha’s stupa, is the White Monastery, popular for
Buddhist studies, meditation and learning Tibetan language. After Tibetans
were exiled from their homeland, many came to live in and around
Boudhanath, making it Nepal’s and one of the world’s largest Tibetan
settlements outside Tibet.

Similarly, in Swayambhunath, there is another giant stupa. Standing on the

top of a hill on the western side of Kathmandu, it is the oldest stupa temple
in Nepal. The exact date of its origin unknown, but the construction of
current stupa is credited to King Manadeva who ruled Nepal in the 5th
century. Over time, rulers of Nepal have added to the main stupa and now
there are many shrines, temples, a library, museum and a monastery in the
Swayambhunath complex. Out of these, 8 monasteries are to be considered
in this research for further analysis as sample size. The short introduction
of these monasteries are as follows;

3.2.1 Shechen Monastery Boudha

Shechen Monastery, one the six main Nyingma monasteries of Tibet, was
destroyed in the late 1950's during the Chinese occupation of Tibet. In
exile, Dilgo Khyentse Rinpoche (1910 - 1991) transplanted the rich
tradition of the original Shechen Monastery to a new home a magnificent
monastery near the great stupa of Bodhnath, Nepal. It was his wish that
this Monastery would maintain the philosophical, contemplative and

31
artistic traditions of the mother monastery.

3.2.2 Khawalung Monastery, Boudha-Simaltar

Khawalung Monastery was founded by Vajra Master Jigme Dorje

Rinpoche, who is a'. Spiritual heir of Yogi maste Choying Wangpo
Rinpoche. The Monastery was inaugurated and blessed in 2005 by H.H.
Trulshik Rinpoche and H.E. Shechen Rabjam Rinpoche .The main aim and
objectives of this monastery institution is to preserve, uphold and
disseminate the general Buddhist Teachings, in particularly the tradition of
Nyingmapa, one of the four major sect of Vajrayana Buddhism, and
especially the treasure teachings (Termas) of H.H. Dilgo Khyentse
Rinpoche. The Monastery includes an elementary school & a training
school for rites and rituals. At the moment 3 teachers have the noble tasks
of instructing and teaching the forty young monks who came from very
remote region of Nepal and Tibet. Besides offering religious education in
basic and advanced courses, the monastery provides free food, clothing
an,d medical expenses for all the Monks.

3.2.3 Kopan Monastery, North of Boudhanath

On a hilltop north of Bodhnath, Kopan Monastery was founded by Lama

Thubten Yeshe, who died in 1984, leading to a worldwide search for his
reincarnation. A young Spanish boy, Osel Torres, was declared to be the
reincarnated lama, providing the 'inspiration for Bernardo Bertolucci's film
Little Buddha. Lama Tenzin Osel Rinpoche no longer resides at Kapan (he
recently renounced his vows to become a cinematographer in Ibiza!), but
visitors are welcome to explore the monastery and many people come here
to study Buddhist psychology and philosophy.

3.2.4 Thrangu Monastery, Boudha, Nepal

Thrangu Tashi Choling, located dose to and facing the Great Stupa of
Boudhanath, was founded by Thrangu Rinpoche is. 1979 when
32
construction began. The ancient stupa is a major pilgrimage site for
Buddhists, one of the most important holy places in Nepal and is also the
largest Tibetan settlement outside Tibet. At the time or' purchasing the
land, there were only a few monasteries in Boudhanath and the area
surrounding the Stupa was mostly rice fields. Rinpoche was just getting
established in Nepal and had very little money. It was originally planned
to be a library and then a shedra but then it became possible to build a
small monastery. Later it became necessary to expand to accommodate the
many monks who were arriving to join the monastery.

3.2.5 Dilyak Monastery, Boudha, Kathmandu

Dilyak Dabzang Monastery is the oldest original Karma Kagyu monastery

in Boudha, Nepal. The monastery was established by Very Yen. 7th
Dabzang Rinpoche year 1963 near the great stupa. V.Ven. Dabzang
....
Rinpoche is one of great teacher of Karma Kagyu lineage. The 7th
Dabzang Rinpoche, Karma Ngedon Drubgyu Chokyi Nyima, the Vajra
holder great master was born in Derge of eastern Tibet to the aristocratic
Jadatsang family. He was recognized precisely with the prediction of Situ
Rinpoche Pema Wangchuk Gyalpo. Dabzang Rinpoche passed away April
1992.

The 8th Dabzang Rinpoche was recognized by H.H 17th Karmapa Orgyen
Drodul Trinley Dorje. Currently, he resides in the original Dilyak
monastery in eastern Nangchen. Since 1992, Ven.Dilyak Drupon Rinpoche
(Karma Shenpo Lodro Chokyi Senge) has been the regent and acting
director for Dilyak Dabsang Monastery in Nepal.

The monastery grounds is not very large but we have planted many trees
and plants. We have also renovated our public toilets and our washing
area so that water is not wasted.

3.2.6 Pullahari Monastery & Retreat Centre, P.O. Box 11015,

33
Jagdol

Pullahari is the seat of His Eminence Jamgon Kongtrul Rinpoche in

Nepal, located in the. Foothills north of the Great Stupa of Boudhanath.
In the secluded serenity with spacious views, the age-old tradition of
prayers, rituals, training, and education of monks continues in the
monastery, and also in the Mahamudra retreat centre. In addition,
residential programs for lay practitioners are offered at the Rigpe Dorje
Institute, and the facilities for individual retreat are open throughout the
year.

3.2.7 Khachoe Gbakyil Ling Nunnery (The Kopan Nunnery)

Khachoe Ghakyil Ling Nunnery, a branch of Kopan Monastery, was born

from Lama Yeshe and Lama Zopa Rinpoche's inspiration and kindness. In
1979 the lamas 'invited two young women who had just escaped from
Tibet to join their monastery in Kathmandu. The growing community of
nuns lived and studied at Kopan Monastery till in 1990 when land was
acquired to build a nunnery - a gompa with living quarters above, on the
hill below Kopan.

The nunnery was opened in 1994 with a grand ceremony and given the
auspicious name of Khachoe Ghakyil Ling"- Pure. Land of Bliss. One
hundred and twenty five nuns moved to the new home at that time. Within
the next 20 years it developed into one of the biggest nunneries in Nepal.

The nunnery is home to 360 nuns, many of them refugees from Tibet. All
of them are women who wish to be nuns and follow their spiritual calling.
The nunnery is administered by a committee under the guidance of the
Kopan abbot. It has now a branch in Sarnath near Varanasi in India, Yulo
Koepa, where fifteen nuns live and practice.

3.2.8 Ka-Nying Shedrub Ling Monastery

34
Ka-Nying Shedrub Ling lies just a few minutes’ walk north from the
ancient Jarung Khashor Chorten─the Great Stupa of Awakening in
Boudhanath, Kathmandu. It is the main monastery at the heart of our
mandala. Its name means “sanctuary for learning and practice,” and upon
entering the compound, one can feel that the name rings true, as it is a
refuge from the hustle and bustle of the busy city.
Based on the wishes of His Holiness the 16 th Karmapa, Tulku Urgyen
Rinpoche and his family began construction of Ka-Nying Shedrub Ling
Monastery in 1974. Upon its completion in the spring of 1976, His
Majesty King Birendra of Nepal performed the official inauguration. At
that time, the Karmapa appointed Chokyi Nyima Rinpoche as abbot and
his brother, Tsikey Chokling Rinpoche, as master of rituals. Gyalwang
Karmapa then led the consecration ceremonies. Thereafter, he offered the
entire transmission of the Kagyu Ngakdzo cycle of teachings and practices
to both the ordained and the lay sangha.

In keeping with its auspicious and promising beginnings, for decades Ka-
Nying she drub Ling swiftly blossomed in all directions. Numerous
meditation masters from the Himalayas have visited and given teachings
and blessings in the main shrine hall. Hundreds of monks study and
practice at the monastery on a daily basis, both the general teachings of
Buddha as well as the inner tantric rituals with profound meaning.
During the two devastating earthquakes of April and May 2015, the
original main temple suffered extensive damage and can no longer be
used. A new temple has been designed and will be built with the help of so
many experts and friends from both Nepal and all over the world.
One can view all the beautiful new designs here and support this crucial
project by joining our “Pledge to rebuild.” Even during the earthquakes,
the continuity of the practice was not interrupted, and the monastics
performed the daily rituals and prayers in temporary shelters outside the

35
temple, while also hosting hundreds of locals in need of food and shelter.
Until the new temple is built, another building currently serves as the main
shrine hall.
The monastery also houses Rangjung Yeshe Institute, the Center for
Buddhist Studies, in partnership with Kathmandu University. At this
world-renowned institute, local and international students from over thirty
countries study Buddhist philosophy, Tibetan, Sanskrit, Nepali, and other
topics relevant to understanding the history of Buddhism and its
contemporary forms.

3.3 Research design

Research design is defined as a framework of methods and techniques

chosen by a researcher to combine various components of research in a
reasonably logical manner so that the research problem is efficiently
handled. It provides insights about “how” to conduct research using a
particular methodology. Every researcher has a list of research questions
which need to be assessed – this can be done with research design.
Research will resembles exploratory as well as descriptive. Field method,
case study and interview method research design will also applied in this
research.

3.4 Universe and sampling

In social research, universe is the area where the research is conducted.

Likewise, a small part selected as a sample for inspection or analysis asks
a sampling of people which candidate they favor. In other words sampling
is concerned with the selection of a subset of individuals from within a
statistical population to estimate characteristics of the whole population.
Two advantages of sampling are that the cost is lower and data collection
is faster than measuring the entire population. In these research monks,
nuns, staffs and other related members of monasteries will be taken as

36
samples and universe.

3.5 Nature and sources of data

The primary and secondary sources of data will be collected for analysis.
In primary data collection method researchers need to consider the sources
on which to base and confirm their research and findings. They have a
choice between primary data and secondary sources and the use of both,
which is termed triangulation, or dual methodology. Primary data is the
data collected by the researcher themselves, i.e. interview, observation,
action research, case studies, life histories, questionnaires, ethnographic
research,

longitudinal studies are used similarly in secondary sources are data that
already exists previous research, official statistics, mass media products,
diaries, letters, government reports, web information and historical data
and information will be considered.

3.6 Data collection technique

The data will be taken the methodological basis into account of secondary
information, knowledge from the respondent, field visit by using mainly
qualitative and quantitative. Direct personal interview method will applied
to administer the structured questionnaires. However, checklist and outline
will prepare to conduct focus group discussion and key informant
interview. The researcher himself with the support of other personnel will
involve in the entire process of research in order to obtain the research,
following tools and techniques shall be applied for collection of data from
the field:

1. Interview schedule

2. Key informant interview

37
3. Focus group discussion

3.7 Selected variables in the study

As noted in the framework, the focus of the study will to find the guided
principles of accounting system in Buddhist monasteries of Nepal as
dependent variables and the study will be in relation 'to social and
religious perspective, Buddhism concepts, accounting principles and
economic aspects as independent variables. As a researcher this thesis
paper will focus on Buddhism percepts and monasteries accounting
system" in Nepal. The above mentioned dependent and independent
variables are co-related with each other and the cause and relationship
between their variables try to identify in this study

3.8 Data analysis and presentation

The collected data will edited, coded and, tabulated for better analysis.
Data presentation will be in tabular form, pie-chart, bar-diagram, tables as
per the appropriateness of the presentation. All the information mentioned
in the questionnaire have been edited first for consistency with the help of
computer software MS word and MS excel with statistical tool and it will
be entered in the computer before presenting it in a final shape.

3.9 Organization of the Study

This study has been organized into five chapters, each devoted to some
aspects of the study of cross-sectional accounting process as follows:

The first chapter is the introduction chapter that contains the general background,
statement of the problem, objectives of the study, and organization of the study.

Chapter Two includes theoretical review of literature regarding the testing of

relationship between accounting and Buddhism, and concluding remarks of the
review of the study. The next chapter consists of methodological approach
employed in this study. This chapter focuses on research design, nature and

38
sources of data, description of variables, methods of data analysis, and
methodological limitation of the study. The empirical results of the study is
analyzed and presented in Chapter Four. This chapter also includes an analysis of
survey of the respondents’ opinion on various aspects of buddhist percepts and
accounting concepts. Finally, Chapter Five consists of the summary and major
findings of this study.

39
References

Accountancy Business and the Public Interest, Vol. 7, No.2, 2008 121

Aho 2005, p.xii

Akanni-1998, Business and Accounting Operation.

American Accounting Association statement of basic accounting theory

-p-l

Barry Melaachon Yale Club in New York City on September 4, 2002,

AICPA Beekun and Badawi, 2005; Saeed, et aI., 2001;

Best and Kahn. 2004, p.9

Binaya Ghimire -2013, Buddhist Temples and Monasteries in Nepal.

Booth, P. (1993), "Accounting in Churches: A Research Framework and

Agenda", Accounting, Auditing & Accountability Journal, Vo1.6, No.4,
pp.·37-67.

Buddha Net production: Translated by Lim Yong and et al-21-9-1996

Catholicism (McGee, 2006;

Central bureau of statistics 2011, population census.

Christianity .Rodgers and Gago 2006;

Fisher -1980. Money Measure Concept.

Foucault-1977, normalization, punishment and discipline process of

society. Fremgen-1968, Drawing up financial statements.

Hendrikson-1992, Basic Accounting Concept

Ibrahim and Angelidis, 2005; -<

Jefferey Cohen and et al -2006, Issue in Accounting Education.

Joseph Solberg and et al-1995, The Journal of Business Ethics.

Journal of Business Ethics, (IBE) (from 1997 to 2006).

40
Journal of Religion and Business ethics -2014 Vol. -3

Judaism (Pava, 1998), and Islam (Rice, 2006)

Keynes -1980, Inflation and Price Level Charge

Kimball- 2000.

Lam and Hung, 2005; Enderle, 1997

Littletion-1993. Accounting history and Accounting Progress. Gates 1992

Majjhima Nikdya, Niinamoli and Bodhi, 2001, pp. 763-770

Marens, 2005; Bowes, 1998; 1'vlcKenna, 1997),

Naughton and Naughton, 2000; Rice, 1999).

Omolechinwa- 2003, Business entity concept

Pence Ted- 2011, Duality and non-quality.

Pitter Harvey-1998, the Eight Fold Paths.

Principles of Accounting- 2005, Bhundipuran Publication Kathmandu.

Prof. Dr. Khadga Man Shrestha, Buddhism in Nepal-20 13 vol. 1 p-l

Radha-1997, Zen Approach of Knowledge

Robert et al-1990, Accounting Teaching.

Sterling-1972, Rules of Debit and Credit.

W. Rahula-1974, What the Buddha Taught?

41
 A Thesis Proposal
On
Guided principles of Accounting System
In the Monasteries of Nepal.

Submitted To:
Ph. D Program,
Lumbini Buddhist University,
Office of the Dean,
Faculty of Buddhist Studies,
Lumbini, Nepal.

Submitted By:
Kalyan Kumar Dahal
Email: kalyandahal2030.kd@gmail.com
2019
 Table of Contents

Chapter 1

Introduction

1.1 Background of the study

1.2 Statement of problem

1.3 Objectives of the study

1.4 Significance of the study

1.5 Conceptual frameworks

1.6 Limitation of the study

Chapter2

Literature reviews
2.1 Theoretical review

2.1.1 Chronological review

2.1.2 Thematic review

2.1.3 Methodological review

2.1.4 Theoretical review

2.1.5 Policy review

Chapter 3

Research methods

3.1 Rationale of the selection of the study area

3.1.1 Population and Households

3.1.2 Religion
3.2 Introduction of selected monasteries

3.2.1 Shechen Monastery Boudha

3.2.2 Khawalung Monastery, Boudha-Simaltar

3.2.3 Kopan Monastery, North of Boudhanath

3.2.4 Thrangu Monastery, Boudha, Nepal

3.2.5 Dilyak Monastery, Boudha, Kathmandu

3.2.6 Pullahari Monastery & Retreat Centre, P.O. Box 11015, Jagdol

3.2.7 Khachoe Gbakyil Ling Nunnery (The Kopan Nunnery)

3.2.8 Ka-Nying Shedrub Ling Monastery, North of Boudha, Nepal

3.3 Research Design

3.4 Universe and sampling

3.5 Nature and sources of data

3.6 Data collection technique

3.7 Selected variables in the study

3.8 Data analysis and presentation

3.9 Organization of the Study

References