Essay Development of Accounting

4591 Words Mar 3rd, 2016 19 Pages
Contents
1. INTRODUCTION..................................................................................................................... 2
1.1 Luca Pacioli: Father Of Modern Accounting ...................................................................................... 2
1.2 19th Century – The Beginnings of Modern Accounting in Europe and America ............................... 3
1.3 20th Century – The Development of Modern Accounting Standards................................................. 4
1.4 21st Century – Accounting Regulation in Modern Commerce ........................................................... 4

2. DEVELOPMENT OF ACCOUNTING ..................................................................................
…show more content…
This definition indicates the phases involved in accounting. First the accounting/financial information would be obtained by the accountant in respect of transactions from source documents such as payment vouchers, invoices and receipts. Next the information would be recorded. During this stage the accountant would classify and summarize the transactions into meaningful groups. Then the accountant would analyze and interpret the information in a manner that would make them comprehensible for the users so that they could, in turn make appropriate decisions.
1.1 Luca Pacioli: Father Of Modern Accounting
According to Burk (1973), Luca Pacioli (pot-chee-O-lee) set down in writing for the first time a description of the double-entry system of accounting, which we still use today in much the same form. Although he didn't actually invent the system he is called "the father of accounting" for his contributions and for documenting the system.
According to Burk (1973), accounting was born before writing or numbers existed, some 10,000 years ago, in the area known as Mesopotamia, later Persia, and today the countries of Iran and
Iraq. This area contains the Tigris Euphrates river valley, a large fertile area 10,000 years ago with a large thriving population and active trading between towns and cities up and down the two rivers. Merchants faced many of the same problems businesses face today. They had to ship their merchandise up and down the

Related Documents