Examining Accounting As A Historical Practice Accounting Essay

Accounting is the art of communicating fiscal information about a concern entity to users such as stockholders and directors. Accounting has been used in human society for more than 7000 old ages, so as I pursue in deepness survey, I try to happen out the history of the accounting, how Accounting been use otherwise compare to the yesteryear? What of import function does Accounting play in the human society? What are the Accounting policies and moralss? How Accounting has been patterns otherwise between states? How do we derive some value from Accounting?

Since prehistoric times, households had to account for nutrient and vesture to confront the cold seasons ( DeSantis, 1995 ) . Subsequently, as adult male began to merchandise, we established the construct of value and developed a pecuniary system. Evidence of accounting records can be found in the Babylonian Empire ( 4500 B.C. ) , in Pharaoh ‘ Egypt and in the Code of Hammurabi ( 2250 B.C. ) . Finally, with the coming of revenue enhancement, record maintaining became a necessity for authoritiess to prolong societal orders.

In 1494, Fra Luca Pacioli wrote his “ Summa ” covering with record maintaining and double-entry accounting, one of the really foremost published books of the clip that would go the accounting “ text edition ” for the following 500 old ages. The Summa was one of the first books published on the Gutenberg imperativeness, became an instant success and was translated into German, Russian, Dutch, and English. The Summa made Pacioli a famous person and insured him a topographic point in history, as “ The Father of Accounting.

Pacioli ‘s accounting system has non changed practically for the last 500 old ages, and every bit long as our wealth was physical and our costs included largely material and labour, this system was equal. The double-entry accounting system relied on historical information and has traditionally provided fiscal studies and statements two hebdomads after the month-end shutting period. Businesss today, necessitate information non two hebdomads after month-end but instantly ; accounting information, activities and indices of public presentation must be available at the push of a button. The tendency in the information age is to gestate and implement accounting as a information base information system garnering all the quantitative and qualitative events of all the countries of a company.

Accounting demand to garner a majority of information and its intent is to demo how the entity has performed over a peculiarly period of clip. Obvious, this requires a complicate procedure and accurate information to carry through it. In the Virginia, happening chances to larn accounting topic is non hard. For case, George Mason University has offer the Accounting classs from get downing degree to MBA degree. GMU besides have many activities relate to accounting major, Beta Alpha Psi which is one of activities for the national honorary and service fraternity of fiscal information professionals. Activities include frequent meeting with presentations by members of the Accounting and Financial services professions.

Accounting research can besides be enhanced by organisation like American Accounting Association ( AAA ) . AAA holds an one-year meeting in August 15 ; its mission is to further world-wide excellence in the creative activity, airing and application of accounting cognition and accomplishment. Another organisation, the Iclub Central assisting investing nines track their fundss through accounting package to develop long term prognosis on one-year budgeting.

Accounting policies and moralss are critical of import in concern universe ( Williams, 2009 ) . This is because of the trust placed in professionals who conduct complex and sometimes arcane undertakings. The general public needs to do certain that those who are making accounting pattern would adhere to high criterion in their behavior. These ethical codifications, enforced by professional organisations, go beyond ordinances and Torahs. There are three organisations that provide a codification of moralss for comptrollers. They are the American Institute of Certified Public Accountants ( AICPA ) ; the Institute of Management Accountants ( IMA ) and the Institute of Internal Auditors ( IIA ) . By fall ining one of these professional organisations, comptrollers agree to the rules that guide their profession. While each group has a somewhat different function in the accounting procedure, the ethical codification is the same: They provide a positive set of statements and guidelines for CPAs. The particulars of the regulations of behavior are expressed about what should or should n’t be done by a professional comptroller.

The end of the three groups is to specify the duties of a professional comptroller. They require that a professional comptroller exercising sufficient diligence and attention in practising her profession. They do non let the revelation of confidential information, whether it is fiscal or otherwise. However, comptrollers do non hold the option to exert the accounting version of attorney-client privilege ; they are capable to oppugning in tribunal and can be subpoenaed for that intent.

Accounting has been patterns otherwise between states ( Cochran 2010 ) . Although accounting criterions and patterns are the same across the board in their beginning, the accounting and revenue enhancement constructions of different states around the universe makes them vary between states. For illustration, Japan, France, Brazil, Switzerland and Netherlands are allowed cost of Research and development in the balance sheet, but non in Germany or the United States. Similarly, book and revenue enhancement timing differences being recorded on the balance sheet as deferred revenue enhancements is required in the United States and the Netherlands, but simply allowed in some instances in the other states. These accounting differences could truly do struggle between states because of international minutess and material. There are significant inquiries of competitory advantages and informational lacks that may ensue from these go oning differences across states. Some of the differences between states include fixed plus reappraisals stated at an sum in surplus of the cost, stock list rating utilizing LIFO, finance rentals capitalized, pension disbursal accrued during period of service, current rate method of currency interlingual rendition. The differences in accounting rules between states could truly do incompatibilities between international operations. Possibly if an international criterion were set for all states, there would be less disputing and more understanding in accounting between states. That manner there would be less disagreement in the accounting rules and the balance sheets for each state.

Accounting is a field that requires you do a batch of research. Because of update information one-year from IRS ( Internal Revenue Service ) , Accountant needs to establish intelligence of diary, article, or magazine ( website provided in the appendix ) to derive some freshly information for revenue enhancement intent at the terminal of each twelvemonth. For illustration, anyone who purchase house as a first place purchaser before April 30, 2010 would measure up a revenue enhancement deductable up to $ 8000.00 dollars ( Gopal, 2009 ) . Accounting is highly careful about what is considered a dependable beginning. A dependable beginning for information could be obtained from GMU Library. It is available online at George Mason University database. It is besides available in the mention subdivision of Fenwick Library following to Robinson Hall.

Other manner to obtain dependable information would be accounting seminar. One of the top seminars in Washington DC country is American Management association. This seminar gives you the accomplishments to manage the particular accounting and coverage demands and trades with the most recent alterations impacting these organisations, review internal controls, fiscal statement demands and the FASB codification. American Management Association besides provide a learning talk to people who are non certain what Accounting would be or whether you want to come in the Accounting universe and go a Accountant.

Accounting has become one of of import tool usage in concern field. By supplying an Appendix, we can larn deeper penetration of value and do Accounting as a utile tool to our day-to-day life.


DeSantis, J. ( 1995 ) . A Brief history of accounting: from prehistoric culture to the information age. Pacioli 2000 for Windows, Retrieved from hypertext transfer protocol: //ensign.ftlcomm.com/historyAcc/ResearchPaperFin.htm

Cochran, S. ( 2007 ) . Accounting differences and their impact on international patterns. EquineKingdom, Retrieved from hypertext transfer protocol: //www.equinekingdom.com/miscellaneous/stuff % 20I % 27ve % 20written/accounting % 20differences.htm

Gopal, P. ( 2009 ) . Who Qualifies for new homebuyer revenue enhancement recognition? . Business Week, Retrieved from hypertext transfer protocol: //www.businessweek.com/the_thread/hotproperty/archives/2009/11/who_qualifies_f.html

Williams, C. ( 1999 ) . The Accounting codification of moralss. Business Management, Retrieved from hypertext transfer protocol: //www.ehow.co.uk/about_4675068_accounting-code-ethics.html