The purpose of the study is to analyze the accounting equation and the relationship between assetsand claims on assets (liabilities plus stockholders’ equity), based on the dual concept of monetary units. Themethod is rationalistic, analytical and deductive, focusing on the implications that the dual concept has for theaccounting equation. The analysis consists of the application of the identity and characteristic functions alongwith a coordinate transformation, to show that the assets-claims on assets relationship involves a change inassets value. The identity function represents the dual concept of monetary unit and the characteristic functionrelates both sides of the equation linking accounts whose units are partially identical. A reformulation of theaccounting equation is made; the new equation has different number of terms on each side. Finally, acoordinate transformation for the assets side terms is done. Results show that the accounting equation consistsof a series of addition functions, which take into account the dual concept of monetary units. A differentnumber of coordinate dimensions arises on each side of the final equation, and a coordinate transformation isapplied to have both sides of the equation with two dimensions. This transformation results in a change in thevalue of assets
