(Accounting)

Notes 2

History
Date: 08/13/21

Origin & History of Accounting

 Abacus is used as a calculator in ancient times which were developed by Sumerians.
 In 14th Century, Luca Pacioli, known as the “Father of Accounting” wrote a book called “De
computis et Scripturis (of Rechonings and Writings) that composed of 36 short chapters
describing bookkeeping.
 Also on that time, Benedetto Cotrugli explained about double entry of bookkeeping on his
book titled Della Mercatura et del Mercante Perfetto ( of Trading and the Perfect Trader).
 Maecenas porttitor congue massa.
 Fusce posuere, magna sed pulvinar ultricies, purus lectus malesuada libero, sit amet commodo
ANCIENT EGYPT, MESOPOTAMIA, GREEK, ROME,
& ENGLAND
Egypt Mesopotamia
• Papyrus was created by Egyptians for
recording transactions and transcriptions.
• Dr. Gunter Dreyer discovered clay tablets
which to be known as the oldest written tax
accouting records.
• He also discovered old stone labels which
were believed to be paid to the king as taxes.
• They introduced money in the form of coins.
• They also adopted the Phoenician writing
system and invented a Greek alphabet to
facilitate record-keeping.
• Through the used of Banker’s books of
account, Greeks offered credit.
Greeks
Information age
• They had clay tokens and tablets to record their
loans, herds, crops, and system of trade.
• Scribes are equivalent of present-day
accountants.
Rome
• Annual Budget were introduced by Romans.
• A cash book is used by households for their
England
• Domesday Book composed of all the real state
surveyed by William the Conqueror.
• Pipe Roll or the Great Roll of Exchequer which
is the most ancient surviving accounting record
in the English language which contains annual
accounting rents, fines and taxes due to the King
of England from year 1130 to 1830.
 Also known as Computer Age, Digital Age or New Media Age that
change accountant’s work.

• Manual, tedious and time-consuming tasks were

replaced by faster and more accurate computer
methods.
• Transactions can be consummated online with the help
of internet.
• Various software applications in accounting were
developed to expedite procedures and accommodate
the numerous needs and demands of the different
businesses.

Centuries

19th Century 20th Century 21th Century

• In England, Industrial • AICPA was formed in • International Accounting

Revolution transformed
accounting into an actual
profession.
• Securities and
• In Scotland, Queen
Victoria granted a royal
charter to the Institute
of Accountants thereby
creating the profession
Chartered Accountant
(CA), thus, making
• Financial Accounting
accounting a formal
profession
• AICPA was called
American Association
of Public Accountants
before.
• It was the first national • FASB and Government
US accounting society
which provided form
certification process for
accountants.
the United States. Standards Board (IASB)
was replaced for IASC
(committee) in Jan. 2001.
Exchange Commission
(SEC) monitors the • Enron Scandal, the greatest
conditions of the corporate fraud case recorded
companies in the US in the American history,
caused by economic caused by Arthur Andersen,
depression. one of the top audit firms in
the US.
• Sabarnes-Oxley Act is a law
Standards Board
passed by US Congress to
(FASB) was established
in 1973 and tasked to set protect investors from
the accounting and corporate misinformation.
auditing standards for
financial reports to be • Due to Great Recession,
filed with SEC. Dodd-Frank Act was created
as a federal law on July 21,
2010 with 16 major areas of
Accounting Standards reform.
Board (GASB) are
authorities establishing • Philippines have adopted the
the Generally Accepted IAS and International
Accounting Principles Financial Reporting
(GAAP) in the US. Standards (IFRS) in order to
support efficient financial
statements across the globe.
16 Major Areas Reform in Dodd-Frank
Act
• Financial stability
• Orderly liquidation authority
• Transfer of powers to the Comptroller
• FDIC and the Fed
• Regulation of advisors to Hedge funds others
• Insurance
• Improvements to regulation
• Wall Street Transparency and accountability
• Payment, clearing and settlement supervision
• Bureau of consumer financial protection
• Federal system reserve provisions
• Improving access to mainstream financial institutions
• Pay it back act
• Mortgage reform
• Anti-predatory lending act

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