The aim of this essay is to prove that accounting history does matter and is important to learn due to its relevance in today’s economy. A good understanding of the history of accounting will aid the people working in the accounting bodies that are making and bettering the accounting techniques and standards. Accounting history can be used to lean from previous mistakes and ensure they do not occur again. In order to create effective future economic policy we need to understand the history so that we avoid the mistakes of the past. Currently, there are accounting bodies such as IFRS the International Financial Reporting Standards, IASB the International Accounting Standards Board, IRBA International Regulatory Board for Auditors which regulate the accounting profession as well as lead the continual and sustained growth of the accounting profession.
Accounting is a practice that operates throughout a wide range of socio – economic environment which is why the knowledge that is needed or should be possessed by an accountant cannot be accurately categorized. This is the reason why it is impossible to discuss an area of a particular concept without having complete knowledge of the other key areas of accounting as well. Therefore for an accountant, it is a must to not only know what accounting is but should also be able to comprehend it.Taylor and Shearing defines accounting as "An art and science of recording business transactions in a methodological manner so as to show: (a) the true state of affairs of a business of a particular period of time and, (b) the surplus or deficiency which has accrued during a specific period.” The theories of accounting explain why they are being practiced with a reason. Even Generally Accepted Accounting Principles cannot be changed entirely because they are being commonly used all around the world but they can be altered and refurnished according to the requirement of the adjustments in the Society or Economy. Now to resolve any actual accounting problem, every accountant must have adequate empirical experience adjoined with abundant theoretical understanding.
However, no standard setters have developed a complete Conceptual framework due to the complexity and difficulty of setting a basis for addressing the various accounting issues appropriately. Thus leading to many unsuccessful revisions. “The earliest attempts to develop a ‘conceptual framework’ in the U.S. accounting literature were by William A. Paton and John B. Canning through their monograph in 1940,” (Stephen A. Zeff, 1999). Later, two Accounting Research Studies by Moonitz (1961) and Sprouse (1962) suggested that accounting practice should move towards a system based on current values. However, AICPA (1962) rejected the proposal because they were radically different from GAAP.
(Janse, et al, 2009), (Armstrong, et al, 2010), (Laux and Laux 2009) have demonstrated that administrators' motivators and remunerations are connected to bookkeeping anomalies and inward control viability, and such an outcome is evident in the US, as well as in different nations. Why is freedom and detail of the board of trustees individuals so vital, and would they be able to be dispassionately and autonomously enough to keep up inside control frameworks, and stop infringement to inward control working? (Naiker, et al 2009), and (Magilke, et al 2009) are among the first to inspect the connection. To put it plainly, the natural elements can contribute altogether to the viability of bookkeeping working, and the nature of bookkeeping detailing. The abnormalities and forceful bookkeeping are probably going to acquire if the situations are debilitate, and fall apart in the part of backings and observing.
Their drive was to make accounting standardized so that it can be understood by most accounting users in the world. Modern accounting profession has developed itself into critical part of modern businesses. Accountants today have the responsibility to work in the best of public interest and comply with strict ethical and technical requirements. There have been cases in the recent past where accountants have been involved in manipulating and fraudulent accounting activities, such as Enron Scandal in 2001. These scandals have put them in major public scrutiny and more regulations have been enforced to avoid such incidents in
Cost management is known as a process that plan and control budget of any businesses made by an organization. It is also a form of management accounting that helps a business to predict the future expenditures and reduce chances of spending over the limit that has been planned in the budget. It is usually the most challenging tasks for officers whom are experts in accounting and finance because they have to think of the expenditures and benefits of it in a long-term period. Also, we can never predict the economy stability and circumstances. Moreover, it is challenging because having a good budget is known as an essential to any development of an organization whereby having drawbacks in planning a budget may be number one factor of why an organization
Firstly, there is only one source of information about a company, secondly, earnings numbers are useless because they were not prepared according to a single basis, and lastly, it is possible to mislead the stock market by manipulating the earnings number through accounting choices. Besides, the believers in EMH and CAPM argued that it is not possible to systematically mislead the market by accounting changes. As researched that, the market differentiates between accounting changes having cash flow effects and changes with no cash flow effects. Therefore, the mechanistic hypothesis was unlikely to be descriptive of the real
History prepares persons for the long term for employment. Person involved with history are analytical, and as such is vital for variety of work. In the current financial situation, there is no doubt that studying or teaching history is questioned, however, studying or teaching history is not an indulgence as it goes hand in hand with many
Many have argued if whether the relevance of accounting history as an academic discipline will benefit the way in which accountants apply themselves. To some, accounting history has no effect on the way in which individuals conduct the practice of accounting; while others may think otherwise. This essay will attempt to debate, in favour of the relevance of accounting history as an academic discipline. The History of Accounting dates back thousands of years to archaic civilisations but was formally recognised in the 14th century, when double-entry bookkeeping had emerged and had been published by Luca Pacioli (the Father of Bookkeeping), in Summa de arithmetica, geometria, proportioni et proportionalita (1494). This included and explained the use of ledgers and journals, assets, liabilities, expenses and incomes, income statements and balance sheets – all of which are still utilised today.
STATEMENT OF PURPOSE “Discovery consists of seeing what everybody has seen and thinking what nobody has thought", as said by Albert Szent-Gyrgyi I Simranjeet Singh Grewal believe in imagining things, pursuing them with all my strength and shaping them into reality. It is difficult to understate the importance of Accounting in companies and the business world as a whole. It is because of my recognition of the importance of accounting that I have decided to seek further education and a career in this field. After careful consideration, it has become clear to me that developing a successful career in accounting in the modern business environment requires advanced training in accounting and related subjects. I am motivated to study in your master’s