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    History of Accounting

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    Blessylyn Aguilar
    Accounting has a long history dating back to 3600 BC where record keeping was common in ancient civilizations. A key development was double entry bookkeeping in 14th century Italy which helped establish modern accounting principles. During the French Revolution and Industrial Revolution in the 1700-1800s, accounting theory and standards began developing to address the needs of changing governments and businesses. In the 19th century, chartered accountants emerged in Scotland and Britain and helped form early accounting societies and standards in Europe and America. Today, the accounting profession continues to develop global standards to ensure transparency with the growing globalization of commerce.

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    History of Accounting

    Uploaded by

    Blessylyn Aguilar
    117 views10 pages
    Accounting has a long history dating back to 3600 BC where record keeping was common in ancient civilizations. A key development was double entry bookkeeping in 14th century Italy which helped establish modern accounting principles. During the French Revolution and Industrial Revolution in the 1700-1800s, accounting theory and standards began developing to address the needs of changing governments and businesses. In the 19th century, chartered accountants emerged in Scotland and Britain and helped form early accounting societies and standards in Europe and America. Today, the accounting profession continues to develop global standards to ensure transparency with the growing globalization of commerce.

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    Accounting has a long history dating back to 3600 BC where record keeping was common in ancient civilizations. A key development was double entry bookkeeping in 14th century Italy which helped establish modern accounting principles. During the French Revolution and Industrial Revolution in the 1700-1800s, accounting theory and standards began developing to address the needs of changing governments and businesses. In the 19th century, chartered accountants emerged in Scotland and Britain and helped form early accounting societies and standards in Europe and America. Today, the accounting profession continues to develop global standards to ensure transparency with the growing globalization of commerce.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    117 views10 pages

    History of Accounting

    Uploaded by

    Blessylyn Aguilar
    Accounting has a long history dating back to 3600 BC where record keeping was common in ancient civilizations. A key development was double entry bookkeeping in 14th century Italy which helped establish modern accounting principles. During the French Revolution and Industrial Revolution in the 1700-1800s, accounting theory and standards began developing to address the needs of changing governments and businesses. In the 19th century, chartered accountants emerged in Scotland and Britain and helped form early accounting societies and standards in Europe and America. Today, the accounting profession continues to develop global standards to ensure transparency with the growing globalization of commerce.

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    HISTORY OF

    ACCOUNTING
    • The Cradle of Civilization
    Around 3600 B.C., record-keeping was
    already common from Mesopotamia, China
    and India to Central and South America.

    The oldest evidence of this practice was the


    “clay tablet” of Mesopotamia which dealt with
    commercial transactions at the time such as
    listing of accounts receivable and accounts
    payable.
    • 14th Century - Double-Entry Bookkeeping
    - The most important event in accounting history is generally
    considered to be the dissemination of double entry bookkeeping
    by Luca Pacioli (‘The Father of Accounting’) in 14th century
    Italy. Pacioli was much revered in his day, and was a friend and
    contemporary of Leonardo da Vinci.

    - The Italians of the 14th to 16th centuries are widely


    acknowledged as the fathers of modern accounting and were the
    first to commonly use Arabic numerals, rather than Roman, for
    tracking business accounts. Luca Pacioli wrote Summa de
    Arithmetica, the first book published that contained a detailed
    chapter on double-entry bookkeeping.
    • French Revolution (1700s)

    • The thorough study of accounting and


    development of accounting theory began
    during this period. Social upheavals affecting
    government, finances, laws, customs and
    business had greatly influenced the
    development of accounting.
    • The Industrial Revolution (1760-1830)

    Mass production and the great importance of


    fixed assets were given attention during this
    period.
    19th Century – The Beginnings of Modern
    Accounting in Europe and America
    The modern, formal accounting profession emerged in Scotland in 1854
    when Queen Victoria granted a Royal Charter to the Institute of Accountants
    in Glasgow, creating the profession of the Chartered Accountant (CA).

    In the late 1800s, chartered accountants from Scotland and Britain came to
    the U.S. to audit British investments. Some of these accountants stayed in the
    U.S., setting up accounting practices and becoming the origins of several
    U.S. accounting firms. The first national U.S. accounting society was set up
    in 1887. The American Association of Public Accountants was the forerunner
    to the current American Institute of Certified Public Accountants (AICPA)
    19th Century – The Beginnings of Modern
    Accounting in Europe and America
    In this period rapid changes in accounting practice and reports were made.
    Accounting standards to be observed by accounting professionals were
    promulgated. Notable practices such as mergers, acquisitions and growth of
    multinational corporations were developed. A merger is when one company
    takes over all the operations of another business entity resulting in the
    dissolution of another business.

    Businesses expanded by acquiring other companies. These types of


    transactions have challenged accounting professionals to develop new
    standards that will address accounting issues related to these business
    combinations.
    The Present - The Development of Modern
    Accounting Standards and Commerce

    The accounting profession in the 20th century developed around


    state requirements for financial statement audits. Beyond the
    industry's self-regulation, the government also sets accounting
    standards, through laws and agencies such as the Securities and
    Exchange Commission (SEC). As economies worldwide
    continued to globalize, accounting regulatory bodies required
    accounting practitioners to observe International Accounting
    Standards. This is to assure transparency and reliability, and to
    obtain greater confidence on accounting information used by
    global investors.
    The Present - The Development of Modern Accounting
    Standards and Commerce

    Nowadays, investors seek investment opportunities all


    over the world. To remain competitive, businesses
    everywhere feel the need to operate globally.

    The trend now for accounting professionals is to


    observe one single set of global accounting standards
    in order to have greater transparency and comparability
    of financial data across borders.
    GROUP ACTIVITY:
    (5 to 6 members)

    Using a long bond paper, MAKE A


    TIMELINE of the HISTORY OF
    ACCOUNTING.

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