The study of history is defined as the narration, documentation and analysis of events that occur in the past, and for many years history has influenced several structural models and customs within the present-day society. Accounting history is, the narration and interpretation of historical events that have impacted the accounting profession. This essay seeks to investigate the impact of history on accounting and the relevance of accounting history, to addresses and answer the question of the importance of history in the accounting profession. T. A. Lee’s (1990) article, ‘A Systematic View of the History of the World of Accounting’ provides comprehensive evidence that is consistent with the premise that accounting has been significantly influenced by changes in history. The four coinciding stages of accounting history will be briefly dealt with to observe such premise. Earliest times (8000BC-1000AD), …show more content…
This is “What 'was' (the historical state) to what 'is' (the positive state) to what 'ought to be' (the normative state)” (Previts, 1984:3). The idea is that through examination and interpretation of the history, researchers will receive a clear understanding of how the ‘present’ was developed and through historical analysis the future can be forecasted because as Demski notes: “Whenever we encounter a problem it goes without saying that the problem has a past and, presumably, a future” (Demski, 1985:72). C.W. Haskins further corroborates by stating that accounting history allows one to “better…understand our present and forecast or control our future” (Haskins, 1904:141). Historians Previts, Parker and Coffman’s (1990:3-8) article ‘’Accounting History: Definition and Relevance’ also analyses the relevance of accounting history by debating advantages that fall into 3 categories that will be discussed below with the consideration of the was-is-ought
Lucas Pacioli was the first to describe a system of debts and credits in accord with journals and ledgers in 1494. These basics came together to be the concoction for what is known as accounting. Since the formal establishment of accounting in 1494, the field has expanded as the demands of the ever-changing economy became greater. The industrial revolution created the first jump in the field forcing the creation of sectors within. Since this first creation of sectors, accounting as a field has been creating more specific sects to accommodate a large variety of areas. The most common and large sects created this far include public and private accounting. Although both sects carry the same basis for their work, the variation between the two lies in their demographic, demands, and decoration.
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
Although the author contends that modern accounting was first developed by the Muslim world in 622 AD, the history of accounting is as old as civilization itself. It was key to critical stage of history and was among the most important professions involving economics and business. It is hard to imagine that the Roman Empire, Greeks before them, and multiple other civilizations could have flourished without a system for tracking their financial resources. According to Gary Giroux, “It took archaeologists to dig up the early history and scholars from many fields to demonstrate the importance of accounting to so many aspects of economics and culture. The role of accountants in the ancient world is coming into clearer focus with new archaeological discoveries and innovative interpretations of the artifacts” (Giroux 1). This is further supported by John Alexander’s, History of Accounting, in which he states five thousand years before the appearance of the double entry accounting system in Italy in the late 1300’s, the Assyrian, Chaldaean-Babylonian, and Sumerian civilizations were thriving in the Mesopota...
Al-Aqeel, E (2013) Historical Introduction On Accounting and Auditing Profession in Saudi Arabia , King Saud University 2nd Semester , 1426-1427
Wolk, H., Dodd, J., & Tearney, M. (2003). Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South-Western College Pub.
As explained above, the accounting science as the rest of the social sciences and Humanities founded, principles and assumptions because of accounting theory cannot reach the effect without a unified subject fundamentals of this science in all countries of the world, hence we have to address the accounting principles and assumptions that underlie accounting in order to put the reader in the perception of accounting and its principles. [1]
The essay sets to provide a perspective upon Management accounting and the effect it can have in creating added value for a firm. It purposes to do so by first giving a short definition and history of management accounting, identifying the differences between management accounting and financial accounting and then proceeding to analyzing some of the most important tools for management accounting. The pylons of the essay will be defining the strategy and its role in management accounting, presenting the plan–do–check–act cycle, the strategy map and the Balanced Scorecard.
Luca Pacioli, the father of accounting, would be astonished. among other things at how the current accounting professional could not operate efficiently and effectively today without technology. Although the contemporary accounting professional has a broad understanding of the accounting process, it is the ever changing technological advances. Evolution of Accounting Technology Some of the earliest forms of writing were on clay tablets from the Middle East and date back to around 3000 B.C.E. After translation, some of these tablets were found to be records of taxes.
Managerial accounting has changed over the years. Managerial accounting focuses on more than the financial aspect. We will be looking at how managerial accounting affects the business world today. Business also look to the economy, federal taxes, and the financial market so it can make the best decisions for their business.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
At a glance, accounting might appear as a repetitive cycle of preparing and examining financial statements. However, a brief exposure to accounting has taught me how chaotic it can be for accountants. An accountant captures and represents the information of businesses. By reviewing financial operations, an accountant helps a business run efficiently. This profession can be intellectually stimulating and rewarding. After learning about accounting, I cannot help but be interested and desire to work toward a degree in accountancy. In my studies, I have learned accountants require a plethora of qualities to be successful. And to mature from a student to a professional, I must resolve to strengthen my weaknesses. There is much I must learn and achieve, but a degree in accounting is well worth the time spent.
Change is inevitable. Yogi Berra once said “The future ain’t what it used to be.” It is clear that the future of the accounting profession ain’t what it used to be (Gormon and Hargadon 1). The changes occurring are happening fast, they are dynamic and they are completely and undeniably real. Since the world around the accountant is changing, the accountant has no option but to change as well. The field of accounting has always been one to know change and to know adjustment, but within the recent past and certainly within the next few decades, the changes that are occurring and will occur absolutely are the most dramatic and exponential yet. Obvious changes lie in the expanding scope of services performed by accountants, the increased use of
The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.
Accounting is so important in our modern society. It serves a variety range of place in our society. It serves a variety range of place in our soceity, from school to hospital, from business firm to government agencies. It's also the main force in regulation of taxation and industrial activity. It serves a great aspects on the development of mass-production systems, any way, it's a very important term in our modern soceity.