We use cookies to give you the best experience possible. By continuing weā€™ll assume youā€™re on board with our cookie policy

The History Of Accounting

essay
The whole doc is available only for registered users

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

Ancient Egyptian bookkeepers kept meticulous records of the inventory of goods kept in royal storehouses. The accuracy of these records was assured by the swift and severe penalty that came if mistakes were ever discovered. ANCIENT ACCOUNTING (CONTINUED) ļ‚¢ In Mesopotamia scribes kept records of commerce on clay tablets. In ancient Greece, the account books of bankers show that they changed and loaned money and helped people make cash transfers through affiliated banks in their cities.

THE FATHER OF ACCOUNTING ļ‚¢ It was Luca Pacioli, who in 1494 first described the system of double- entry bookkeeping used by Venetian merchants in his Summa de Arithmeica, Geometria, Proportioni et Proportionalita. Also, the first to describe the system of debits and credits in journals and ledgers that is still the basis of todayā€™s account system. THE BEGINNING OF MODERN ACCOUNTING 19th Century ļ‚¢ 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 charted accountant (CA). ļ‚¢ 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. ļ‚¢ The first national U.S. accounting society was set up in 1887. 1816 ļ‚¢ John Croaker, a bank clerk from England, was caught and charged with embezzling from the bank and was sent to the colony of New South Wales.

Upon arrival he was granted an immediate ticket of leave and began working as a clerk in the justiciary and set himself up as a commodities dealer. At this time, the first Bank of New South Wales opened, and John Croaker helped to establish their bookkeeping practices, instigating double-entry bookkeeping for the first time in Australia. 19th Century 1854 ļ‚¢ On the 6th of July 1854, a petition was signed by forty-nine accountants in Glasgow asking Queen Victoria for the grant of a Royal Charter. Thus the formal accounting profession emerged in Scotland with the formation of Edinburgh Society and Glasgow Institute of Accountants. The title ā€˜Chartered Accountantā€™ was decided upon and adopted for members of the Society, and was soon adopted by the Glasgow Institute and the later formed Aberdeen Society. However the Institute of Chartered Accountants of Scotland was not formed until the three societies merged in 1951. 19th Century 1880

In 1880, the Institute of Chartered Accountants in England and Wales was formed, bringing together members from a number of individual accounting organizations. The newly formed institute developed standards of conduct and examinations for admission. Books such as Book-keeping exercise for accountant students, The studentā€™s business methods and commercial correspondence and Australian elementary bookkeeping represent examples of the shift towards professional education and accreditation in the accountancy proffesion. 19th Century 20th Century THE DEVELOPMENT OF MODERN ACCOUNTING STANDARDS ļ‚¢ The accounting profession in the 20th century developed around, at first, state requirements for financial statement audits, and then around Federal requirements created by securities acts passed in 1933 and 1934 (which created the Securities and Exchange Commission) SECURITIES AND EXCHANGE COMMISSION (SEC) ļ‚¢ The U.S. Securities and Exchange Commission (SEC) is a federal agency that provides protection for investors and regulates the bulk of the securities industryā€”including U.S. stock exchanges, options markets, and other electronic exchanges and securities markets.

Created by The Securities Exchange Act of 1934ā€“ a law governing the secondary trading of securities in the U.S. Publicly-traded companies were now obligated to disclose investment risks and provide full information about the state of their business. 21st Century ACCOUNTING REGULATION IN MODERN COMMERCE ļ‚¢ The 21st century saw the passage of the Dodd-Frank Act after the recession of 2008. The act contained 16 major areas of reform, including creation of the Financial Stability Oversight Council and the Volcker Rule that restricts banks from owning, investing, or sponsoring hedge funds, private equity funds, or any other type of proprietary trading operations that result in their own profit THE FUTURE OF ACCOUNTING

The global standard outside of the U.S. is the International Financial Reporting Standards (IFRS). As global commerce continues to grow, efforts are underway to create consistent accounting standards across borders through the widespread adoption of IFRS by American business and accounting firms who wish to continue to participate in the global economy. Accountants looking to the future have recognized that existing accounting principles in place in the United State known as the Generally Accepted Accounting Principals (GAAP), are likely to change in the near future.

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59