GAAP have been centrally located into what is known as the “codification.” The codification reveals all of the current practices and standards, and even reveals developing areas of standards of accounting that are currently being debated upon. Through the help of technology and computer systems all standards created for U.S. Since this time the AICPA and FASB have been working together with the Securities Exchange Commission (SEC) to develop accounting standards for business. GAAP was developed shortly after by the American Institute of Certified Public Accountants (AICPA) and the Financial Accounting Standards Board (FASB) in the year 1939. The 20s accounting really became important to reduce the amount of fraud and scandals that were performed in businesses around the country. The title and professional license of the Certified Public Accountant followed shortly in the year 1896. Shortly after, the first accounting organization was developed in New York in the year 1887. Several of the double entry accounting methods was truly developed in this area as there was a focus on business as never before. 1700 – 1900ĭuring the Industrial Revolution, accounting really took off as industrial companies sought out to gain financing and maintain efficiency through operations. They used the first presentation to gain investors, while they used the next presentation for business efficiencies. This also created the need for a change in financial accounting and managerial accounting. For example, the East India Company develops invested capital and dividend distribution during the 17th century. 1500 – 1700Īs the time progressed, double entry records had large and small innovations added. With these records came the primitive income and balance sheet statements. He revealed that several merchants kept books of debits which means “he owes” as well as credits which means “he trusts.” With this early double entry accounting system merchants were able to maintain records so that they could improve the efficiency of their businesses. Luca Pacioli, the father of accounting, writes his famous paper “Everything about Arithmetic, Geometry, and Proportion.” The treatise that he writes is mainly a study that Pacioli performs on the common practices of merchants in Venice, Florence, and Milan. It walks you through steps to accelerate your career in becoming a leader in your company.ĭownload The 7 Habits of Highly Effective CFO Want to take your financial leadership to the next level? Download the 7 Habits of Highly Effective CFOs. They took these records mainly to keep track of the day to day transactions and credit accounts with other businesses. The first requirement for businesses to keep accounting records spread across many of the Italian Republics in the 13th century. The reports accountants took were given orally, hence the name “ auditor.” 1200 – 1493 The auditing profession was born to double check storehouses as to what came in and out the door. They even invented the first bead and wire abacus. 500 B.C.Įgyptians carried on with accounting records. The Phoenicians created an alphabet with accounting so that they were not cheated through trades with ancient Egyptians. Back then, rulers kept accounting records for taxing and spending on public works. Historical accounting records have been found in ancient civilizations like the Egyptian, Roman, and Greek Empires as well as ancient Arabia. The history of accounting timeline starts in 2500 B.C. It encompasses primitive accounting, with the use of an abacus, to the accounting software and regulation that we use today. International Financial Reporting Standards (IFRS)įinancial Accounting Standards Board (FASB)Ĭertified Public Accountant (CPA) History of Accountingīelow is the history of accounting timeline is a general overview of larger events which have all contributed to modern day accounting. Generally Accepted Accounting Principles (GAAP) Jul 24 Back To Home History of Accounting
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