Name : Tanvir Ahmed Mutain

ID : B170201021
The development of accounting principles

Four phases of accounting :

 Management contribution phase (1900 - 33)

 Institution contribution Phase (1933 - 59)

 Professional contribution phase (1959-73)

 Politicization phase (1973 - Present)

Management contribution phase (1900 - 33)

 The influence of management from increasing

number of shareholders and industrial
corporation after 1900

 AIA(1917) created uniform CPA examination and

The New York stock exchange required to publish
annual financial statements
 End of 19th century , overhead in production cost
became major issue in accounting and focuses on
realistic production cost

 The 1918 Act recognized accounting role for

determination of taxable income
Institution contribution phase (1933 -59)

 Increase influence of institution in the developent of

accounting principles. In 1934, Congress created SEC to
administrate various law(The Securites Act of 1933 ,
The Securites Act of 1933 )

Corporation free to choose accounting methods and

procedures but had to disclose them
CAP
 Because of criticism about AAA, it empowed CAP.
It gave 12 Accounting Research Bulletins (1938-
39)

 But,CAP was criticised intensely for various

reasons (1957-1959)