Far600
Accounting history
# Study of evolution in accounting, thought, practice & institutions
# Responds to change in environment & societal needs.
# Understand better the present, to forecast the future.
# Contribute to acting pedagogy, policy & practice.
History Development of Accounting
Development of accounting record
General Scientifc Period(1800-1955).
# Concern about explaining what has been done without concerning about whether it is correct or not.
Normative period (1957-1970)
# Corncerning what should be done for best accounting practice.
# Factors of normative period’s demise : a) The unlikehood of one particular normative theory being generally accepted b) The application of financial economic principles. c) The availability of empirical data and new testing methods. Positive Era (1970)
# Explain what have been done & predict what should be done.
Behavioral research ( 1980)
# Concerned how much user react with the outcome.
Age of record keeping
# Oral tradition of stewardship
# Written form more comman – 15th
# Roman numeral – 15th. -No zero balance - cannot be adapted for division or multiplication
# Arabic numbers -Could be easily changed for fraudulent purpose
# Merchant account -To record receipts & payment Settle different between partner Recent Developments
# Academic and professional development
# Academic research focus on : a) Capital market b) Agency theory c) Behavioral aspects
Purpose of accounting theory
# To explain current practices.
#To evaluate practice
#To facilitate the development of future practice.
Theory is accepted if :
# It is well explains & predict reality.
# It is constructed theoretically & empirically.
# Accepted implications.
Accounting theory meaning
- A set of broad principles that provide a general frame of reference by which accounting practice can be evaluate & guides the development of new practice & procedures.
# Study of evolution in accounting, thought, practice & institutions
# Responds to change in environment & societal needs.
# Understand better the present, to forecast the future.
# Contribute to acting pedagogy, policy & practice.
History Development of Accounting
Development of accounting record
General Scientifc Period(1800-1955).
# Concern about explaining what has been done without concerning about whether it is correct or not.
Normative period (1957-1970)
# Corncerning what should be done for best accounting practice.
# Factors of normative period’s demise : a) The unlikehood of one particular normative theory being generally accepted b) The application of financial economic principles. c) The availability of empirical data and new testing methods. Positive Era (1970)
# Explain what have been done & predict what should be done.
Behavioral research ( 1980)
# Concerned how much user react with the outcome.
Age of record keeping
# Oral tradition of stewardship
# Written form more comman – 15th
# Roman numeral – 15th. -No zero balance - cannot be adapted for division or multiplication
# Arabic numbers -Could be easily changed for fraudulent purpose
# Merchant account -To record receipts & payment Settle different between partner Recent Developments
# Academic and professional development
# Academic research focus on : a) Capital market b) Agency theory c) Behavioral aspects
Purpose of accounting theory
# To explain current practices.
#To evaluate practice
#To facilitate the development of future practice.
Theory is accepted if :
# It is well explains & predict reality.
# It is constructed theoretically & empirically.
# Accepted implications.
Accounting theory meaning
- A set of broad principles that provide a general frame of reference by which accounting practice can be evaluate & guides the development of new practice & procedures.