History/Origin of

Accounting
Fundamentals of Accounting, Business and Management 1
ABM_FABM11-IIIa-4

http://onlinelessonsresources.blogspot.com/
 History of Accounting
 History of Accounting

It is believed that the history of accounting is thousandsof

years old and can even be traced to ancient civilizations. A
number of history books suggest that the early development
‘ of accounting can be dated back to ancient Mesopotamia.
During those times, people followed a system of writing and
counting money. The development of accounting may be 1
related to the taxation and trading activities of temples.
http://onlinelessonsresources.blogspot.com/
 Accounting and Its Environment
Brief History
I. Early development in Mesopotamia
• People followed a system of writing and counting money. The
development of accounting may be related to the taxation and trading
activities of temples.

Bulla (plural Bullae) found in

Mesopotamia. Experts consider this
stage of record keeping the beginning
of the art of writing.
The original bulla was a lump of clay molded
around a cord and stamped with a seal. Once
the clay has dried, the container (such as
a vase or money bag) cannot be violated without
visible damage to the bulla, thereby ensuring the
contents remain tamper-proof until they reach
http://onlinelessonsresources.blogspot.com/
their destination
DEPARTMENT OF EDUCATION
 History of Accounting
 The reign of Emperor Augustus (63ac—14Ao) provided more evidence
about the development of accounting. The Roman government kept
detailed financial information of the deeds of Emperor Augustus
regarding the stewardship of Roman resources. This is evidenced by
the Res Gestae Divi Augusti (The Deeds of the Divine Augustus).The
Roman historians Suetonius and Cassius Dio recorded that in BBC,
Augustus prepared a rationarium (account) which listed public
revenues, the amounts of cash in the aerarium (treasury), in the
provincial nsci (tax officials), and in the hands of the publicani
(public contractors); and that it included the names of the freedmen
and slaves from whom a detailed account could be obtained. The
closeness of this information to the executive authority of the
emperor is attested by Tacitus’ statement that it was written out by
http://onlinelessonsresources.blogspot.com/

Augustus himself. (Oldroyd 1995)

 Accounting and Its Environment
Brief History
II. Development in the Roman Empire

• The reign of Emperor Augustus (63BC-14AD) provided more evidence

about the development of accounting.
• The Roman government kept detailed financial information of the deed
of Emperor Augustus regarding the stewardship of Roman resources.
• Roman historian Suetonius and Cassius Dio recorded that in 23BC,
Augustus prepared rationarium (account) which listed public revenues,
the amounts of cash in the aerarium (treasury), in the provincial fisci
(tax officials), and in the hands of the publican (public contractors); and
that it included the names of the freedmen and slaves from whom a
detailed account could be obtained.
http://onlinelessonsresources.blogspot.com/

DEPARTMENT OF EDUCATION
 History of Accounting
 Many consider the dissemination of the double-entry
bookkeeping of Luca Pacioli in the fourteenth century Italy is
the most important event in accounting history. In fact, Luca
Pacioli is acknowledged as the father of modern accounting
because of this. The double- entry bookkeeping system is
defined as any bookkeeping system that has a debit and a
credit for each transaction. Luca Pacioli’s Summa
de'Arithmetica, Geometric, Proportioni et Proportionalita
(Review ofArithmetic, Geometry, Ratio, and Proportion) is the
first book printed with a treatise on bookkeeping. The double-
entry bookkeeping system is the system being used to this very
http://onlinelessonsresources.blogspot.com/

day. (Sangster et al. 2007)

 Accounting and Its Environment

Brief History
III. Dissemination of double-entry bookkeeping the 14th century Italy

• Most important event in accounting

history
• Luca Pacioli is acknowledged as the
father of modern accounting because
of this. His “Summa de Arithmetica,
Geometria,Proportioni et
Proportionalita” (Everything about
Arithmetic, Geometry and Proportion)
is the first book printed with a
treatise on bookkeeping.
http://onlinelessonsresources.blogspot.com/

DEPARTMENT OF EDUCATION
 History of Accounting
 The modern profession of the chartered
accountant'originated in Scotland in the nineteenth
century when Queen Victoria granted a royal charter
to the institute of Accountants in Glasgow At present
times, accounting standards are already available to
guide accountants in their practice of the profession.
Some of these standards include _ the PFRS
(Philippine Financial Reperting Standard) and the PAS
(Philippine Accounting Standards).
http://onlinelessonsresources.blogspot.com/
 Accounting and Its Environment

Brief History

IV. Signing of charter by Queen Victoria

• The modern profession of the chartered accountant
originated in Scotland in the 19th century when
Queen Victoria granted a royal charter to the
Institute of Accountants in Glasgow.

V. Formation of accounting standards such PAS

and PFRS
http://onlinelessonsresources.blogspot.com/

DEPARTMENT OF EDUCATION
 Individual Activity
As discussed in the “History of Accounting”
section of this chapter, accounting is used
even in the early ancient periods. In a one-
page paper, give at least three examples of
how people from earlier periods made use of
the accounting process. How did the
accounting process help such persons in their
lives?
http://onlinelessonsresources.blogspot.com/
 CREDIT TO

MSEUF for some slides

in this presentation.

http://onlinelessonsresources.blogspot.com/