History of

Accounting
Rochelle Bermas Morcoso, LPT,MPA
 ACCOUNTING

ACCOUNTING STARTED AS A SIMPLE RECORDING OF

REPITITIVE EXCHANGES.
THE HISTORY OF ACCOUNTING IS OFTEN SEEN AS
INDISTINGUISHABLE FROM HISTORY OF FINANCE AND
BUSINESS.
•THE EARLIEST ACCOUNTING
RECORDS WERE FOUND OVER 7,000 YEARS AGO AMONG THE RUINS OF ANCIENT
MESOPOTAMIA., PEOPLE RELIED ON ACCOUNTING TO KEEP A RECORD OF CROP
AND HERD GROWTH.

• INDUSTRIAL REVOLUTION
IT GIVES THE IMPORTANCE OF ASSETS DURING
THIS PERIOD.
ROMAN EMPIRE
“THE DEEDS OF THE DIVINE AUGUSTUS” IS AN ACCOUNT OF
EMPEROR AUGUSTUS’ FINANCIAL DEALINGS. IT LISTED SUCH
QUANTITIES AS DISTRIBUTIONS TO THE PEOPLE, GRANTS OF LAND,
BUILDING OF TEMPLES, MONEY TO MILITARY VETERANS, RELIGIOUS
OFFERINGS, AND MONEY SPENT ON THEATRICAL SHOWS AND
GLADIATOR EVENTS.
14TH CENTURY – DOUBLE ENTRY
BOOKKEEPING
LUCA PACIOLI (THE FATHER OF ACCOUNTING) IN 14TH CENTURY ITALY. AS THE
FATHER OF MODERN ACCOUNTING AND THEY WERE THE FIRST TO COMMONLY
USE ARABIC NUMERALS, FOR TRACKING BUSINESS ACCOUNTS.
PACIOLI DECLARES THAT A SUCCESSFUL MERCHANT NEED THREE THINGS:
SUFFICIENT CASH OR CREDIT, GOOD KEEPERS AND AN ACCOUNTING SYSTEM.
THE TRIAL BALANCE (SUMMA SUMMARIUM) IS THE END OF PACIOLI’S
ACCOUNTING CYCLE.
PACIOLI -ACCOUNTING

LUCA PACIOLI WROTE SUMMA DE ARITHMETICA, GEOMETRIA, PROPORTIONI ET

PROPORTIONALITA, WHICH INCLUDED A TWENTY-SEVEN-PAGE TREATISE ON
BOOKKEEPING TITLED , PARTICULARIS DE COMPUTIS ET SCRIPTURIS
(DETAILS OF CALCULATION AND RECORDING) ON THE
SUBJECTS OF RECORD KEEPING AND DOUBLE-ENTRY ACCOUNTING.
 19TH CENTURY – BEGINNINGS OF MODERN
ACCOUNTING IN EUROPE AND AMERICA
• THIS PERIOD RAPID CHANGES IN ACCOUNTING PRACTICES AND
REPORTS WERE MADE.

• ACCOUNTING STANDARDS OBSERVED BY ACCOUNTING

PROFESSIONALS WERE PROMULGATED. NOTABLE PRACTICES SUCH
AS MERGERS, ACQUISITIONS AND GROWTH OF MULTINATIONAL
CORPORATION WAS DEVELOPED.
THE PRESENT – THE DEVELOPMENT OF MODERN
ACCOUNTING STANDARDS AND COMMERCE

• THE ACCOUNTING PROFESSION IN THE 20 TH CENTURY DEVELOPED

AROUND STATE REQUIREMENTS FOR FINANCIAL STATEMENTS
AUDITS.

• THE GOVERNMENT ALSO SETS ACCOUNTING STANDARDS, THROUGH

LAWS AND AGENCIES SUCH AS SECURITIES AND EXCHANGE
COMMISSION (SEC). TO CONTINUED TO GLOBALIZE, ACCOUNTING
REGULATORY BODIES REQUIRED TO OBSERVE INTERNATIONAL
ACCOUNTING STANDARDS.
 ACCOUNTING
• ACCOUNTING IS A SYSTEM MEANT FOR MEASURING BUSINESS ACTIVITIES,
PROCESSING OF INFORMATION INTO REPORTS AND MAKING THE FINDINGS
AVAILABLE TO DECISION-MAKERS.

Accounting is the recording of financial transactions along

with storing, sorting, retrieving, summarizing, and
presenting the results in various reports and analyses.
 ACCOUNTING
• ACCOUNTING – IS A SERVICE ACTIVITY, ITS FUNCTION IS TO PROVIDE
QUANTITATIVE INFORMATION, PRIMARILY FINANCIAL IN NATURE, ABOUT ECONOMIC
ENTITIES, THAT IS INTENDED TO BE USEFUL IN MAKING ECONOMIC DECISION.
( ACCOUNTING STANDARDS COUNCIL/ PHIL. FINANCIAL REPORTING STANDARDS
COUNCIL)
Accounting is the process of identifying, measuring and
communicating economic information to permit informed
judgment and decision by users of the information
- American Accounting Association/ basic accounting
theory-
 IMPORTANCE OF
ACCOUNTING
• ACCOUNTING ASSISTS IN ASSESSING A BUSINESS’S
PERFORMANCE

• ACCOUNTING ENABLES A BUSINESS TO FOLLOW LAWS AND

REGULATIONS

• BUSINESSES CAN MONITOR AND MANAGE CASH FLOW WITH

THE HELP OF ACCOUNTING

• ACCOUNTING ALSO ASSISTS IN MAKING BUDGETS AND FUTURE

PREDICTIONS

• BUSINESSES CAN FILE DIFFERENT STATEMENTS AND FORMS

WITH ACCURATE ACCOUNTING