ABM1_Concepts and Principles.pptx

1. FUNDAMENTALS
OF
ACCOUNTANCY,
BUSINESS AND
MANAGEMENT 1
HISTORY OF
ACCOUNTING

2. WHEN DID ACCOUNTING BEGIN?
• It is said that the beginning of accounting can be
traced back to as early as when people learned to
trade, tax and develop a system of counting money.
According to history, in 4000B B.C., the income of
temples was recorded in lower Mesopotamia. The
Phoenicians also in 1000 B.C. created an alphabet
with accounting to help them in their trades with the
ancient Egyptians and avoid being cheated. In 500
B.C. history recorded the invention of the first bead
and wire abacus by the Egyptians who were already
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3. WHEN DID ACCOUNTING BEGIN?
•In the 14th century, Luca Pacioli became a
prominent person in accounting history due to
writing a book that introduced and disseminated
the double-entry bookkeeping. The Summa de
Arithmetica, Geometria, Proportioni et
Proportionalita of Pacioli is the first book to
introduce bookkeeping. Pacioli is considered as
the father of modern accounting.
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4. WHEN DID ACCOUNTING BEGIN?
•Another event in accounting history and
development took place in Scotland in the 19th
century where the modern profession of
chartered accountants originated. This became
possible by the granting of Queen Victoria of a
royal charter to the Institute of Accountants in
Glasgow.
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5. WHEN DID ACCOUNTING BEGIN?
•Currently, accounting standards are available to
provide guidance to accountants in their
professional practice. Some of these are the
Philippine Accounting Standards (PAS), the
Generally Accepted Accounting Principles
(GAAP), and the International Financial
Reporting Standards (IFRS). Since 2005, the
Philippines became completely compliant with
the IFRS.
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6. WHEN DID ACCOUNTING BEGIN?
The Present – The Development of Modern Accounting
Standards and Commerce. The accounting profession in the 20th
century developed around state requirements for financial statement
audits. Beyond the industry’s self-regulation, the government also sets
accounting standards, through laws and agencies such as Securities and
Exchange Commission (SEC). As economies worldwide continued to
globalize, accounting regulatory bodies required accounting practitioners
to observe International Accounting Standards. This is to assure
transparency and reliability, and to obtain greater confidence on
accounting information used by global investors. Nowadays, investors
seek investment opportunities all over the world. To remain competitive,
business everywhere feel the need to operate globally. The trend now for
accounting professionals is to observe one single set of global accounting
standards in order to have greater transparency and comparability of
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7. ANSWER ME!!!!: TRACE
BACK TO HISTORY!

8. TRACE BACK TO HISTORY!
WHEN DID ACCOUNTING START? WHO WERE THE PEOPLE WHO CONTRIBUTED TO ITS
DEVELOPMENT? ORDER THE FOLLOWING EVENTS IN ACCOUNTING HISTORY AND
DEVELOPMENT BY WRITING 1 FOR THAT WHICH HAPPENED FIRST, 2 FOR THAT WHICH
HAPPENED NEXT, AND SO ON UNTIL 5. BE SURE TO BE ON WATCH FOR CLUES ALONG EACH
ITEM. WRITE YOUR ANSWERS ON YOUR ANSWER SHEET
_______ 1. Luca Pacioli wrote his Summa de Arithmetic, Geometria, Proportioni
et Proportionalita which introduced double-entry bookkeeping in 1400s.
_______ 2. A remarkable leap in accounting took place in the 19th century when
Queen Victoria of Scotland gave a royal charter to the Institute of Accountants in
Glasgow.
_______ 3. Philippines has started to be completely compliant with the
International Financial Reporting standards to the present.
_______ 4. Egyptians invented the abacus of bead and wire and were making
and keeping accounting records.
_______ 5. The beginning of accounting can be traced back to income
calculation and taxation activities of Ancient Mesopotamia.

9. TRACE BACK TO HISTORY!
WHEN DID ACCOUNTING START? WHO WERE THE PEOPLE WHO CONTRIBUTED TO ITS
DEVELOPMENT? ORDER THE FOLLOWING EVENTS IN ACCOUNTING HISTORY AND
DEVELOPMENT BY WRITING 1 FOR THAT WHICH HAPPENED FIRST, 2 FOR THAT WHICH
HAPPENED NEXT, AND SO ON UNTIL 5. BE SURE TO BE ON WATCH FOR CLUES ALONG EACH
ITEM. WRITE YOUR ANSWERS ON YOUR ANSWER SHEET
_______ 1. Luca Pacioli wrote his Summa de Arithmetic, Geometria, Proportioni
et Proportionalita which introduced double-entry bookkeeping in 1400s.
_______ 2. A remarkable leap in accounting took place in the 19th century when
Queen Victoria of Scotland gave a royal charter to the Institute of Accountants in
Glasgow.
_______ 3. Philippines has started to be completely compliant with the
International Financial Reporting standards to the present.
_______ 4. Egyptians invented the abacus of bead and wire and were making
and keeping accounting records.
_______ 5. The beginning of accounting can be traced back to income
calculation and taxation activities of Ancient Mesopotamia.
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