Accounting- is the process of mathematician), the father of modern
identifying, recording, and communication accounting. Friend and colleague of
economic events of an organization to Leonardo Da Vinci. This concept is
interested economic users to used for explain in detailed from his
economic decisions. published book, Summa Di
Arithmetica Geometria Proportioni
Nature of Accounting: and Proportionista. (Nov. 10, 1494).
Accounting is a service activity French Revolutions (1700s) and The
Accounting is a process industrial Revolutions (1760-1830)
Accounting is an art and discipline the development of accounting and
Accounting deals with financial the rise of importance in mass
information and transaction. productions and fixed assets.
Accounting is an information system
19th century- The beginnings of Modern
Accounting is a language of business- Accounting in Europe and America-
because the information generated The modern formal accounting
through accounting system. This helps to profession starts in Scotland in 1854
flourish and monitor the performance of, when Queen Victoria granted a royal
as well as to determine to unfavorable charter sa Institute of Accountants sa
outcome and mitigate the effect of it in Glasglow, (creates the profession of
the business through the accounting Chartered Accountants).
principles. It also helps to scale the In 1800s, these CA from Scotland
growth and viability of financial capacity and British visit US to audit British
of the business for a longer term. Thus, Investments.
accounting is the blood that circulates in Some stayed in US which the
the business as the body to be alive. beginning of several accounting
firms of the country.
History of Accounting In 1887, the 1st national US
accounting society or organization is
The Cradle of Civilization AAA (American Association of
Accounting is as old as the Public Accountants or AKA now as
civilization around 8,500 B.C in AICPA) American Institute of
Mesopotamia, china, india, to Certified Public Accountant)
central, and south America. This is The Present- The Development of
evident from the ancient practices Modern Accounting Standards and
found in Mesopotamia, by the used Commerce
of “Clay Tablet” to dealt with In 20th century the state required
commercial activities by listing the financial audits to myriad private
AR and AP. organizations, sectors, and
government.
14th Century Double-Entry Bookkeeping. The implementation of accounting
The most important event of standards by laws and agencies like
accounting in history. As the first SEC, CDA, DTI.
double-book entry concept created Accounting regulatory bodies
by Fra. Luca Pacioli (monk and required to observe IAS.
Now, we have single set of
accounting standard exercise by all
businesses for greater transparency
and comparability of financial data
across the globe.
Branch of Accounting
1. Financial Accounting- focus on
meeting the needs of external users.
Primarily in recognizing, measuring,
and communicating (financial
statement) the economic activities.
But internal users also used the
information for economic decisions.
Complied with the standards
developed by PFRS set up FRSC.
More objective established fairness
and transparency.
2. Management (Managerial)
Accounting
Emphasize the preparation and
analysis of accounting information
within the organization
Providing a timely and relevant
information for internal users to use
in decision-making.
Subjective- for having a sensitive
information and prepared in point of
view of management.
Ex: financial analysis, budgeting,
and forecasting, cost evaluation.
3. Government Accounting- involves of
processing information about
government activities within the
public using accounting procedure.
The inflow and outflow of the
government funds.
