Question

II. Accounting Environment (25%) o Accounting History & Evolution; Accounting Standards Adopted o Dominant Accounting Methodologies/Considerations

Answer 1

Accounting history and evolution

The early development of accounting dates back to ancient Mesopotamia, and is closely related to developments in writing, counting and moneyand early auditing systems by the ancient Egyptians and Babylonians. By the time of the Roman Empire, the government had access to detailed financial information. Chanakaya's book "Arthashasthra" contains few detailed aspects of maintaining books of accounts for a Sovereign State. The Italian Luca Pacioli, recognized as The Father of accounting and bookkeeping was the first person to publish a work on double-entry bookkeeping, and introduced the field in Italy.The modern profession of the chartered accountant originated in Scotland in the nineteenth century

Dominant accounting considerations

• Accrual principle
• Conservatism principle
• Consistency principle
• Full disclosure principle
• Going concern principle
• Matching principle.