Topics: Scientific method, Accountancy, Economics Pages: 4 (699 words) Published: May 13, 2013
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...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • FAR600 Essay
  • FAR600 Essay
  • Far600 Case Study Worldcom Essay
  • Summary Far600 Chapter 8 Essay

Become a StudyMode Member

Sign Up - It's Free