International Journal of Sustainable Development Research
Volume 1, Issue 2, November 2015, Pages: 14-20

History and Development of Accounting in Perspective

Balogun Akinyemi1, *, A. E. Okoye2, Prince Famous Izedonmi2

1Banking & Finance Department, Achievers University, Owo, Nigeria

2Accounting Department, University of Benin, Benin, Nigeria

Email address:

(Balogun Akinyemi)

To cite this article:

Balogun Akinyemi, A. E. Okoye, Prince Famous Izedonmi. History and Development of Accounting in Perspective.International Journal of Sustainable Development Research.Vol.1, No. 2, 2015, pp. 14-20. doi: 10.11648/j.ijsdr.20150102.11


Abstract: No discipline can develop without a strong theoretical base practice should backed by sound theory. This article covered the History of Accounting Development; it embodies stewardship, Ancient civilization of accounting, double entry and book keeping system. Accounting as it is practiced today, evolved gradually over the years, and we can must pin-pint the time of the first Accounting system.

Keywords: Accounting History, Accounting Development, Double Entry Accounting, Uses of Accounting History


1. Introduction

Since we cannot say precisely as to the date and where Accounting originate from hence the origin of accounting is not certain, historical research and finding is mainly a gap filling exercise. Accordingly it is a known fact that examination of past events enables us to appreciate the complexity and persistence of many problem presently facing accounting studies and professionals. This should therefore help to guard against last judgments and premature adoption of non-tested principle, price of policies and techniques.

Every organization uses accounting. The store-keeper maintains accounting records to measure success selling of goods. The large organization needs accounting to keep track of their transactions. Accounting became so important because it helps an organization the same way model helps an Architect construct a building.

Accounting has been defined by many scholars, researchers and authors. Accounting simply means a process of recording; classifying, selecting, measuring, interpreting and communicating financial data of an organization to enable users make decision.

Despite the numerous importance of accounting to man, there are many controversies in the profession. Such as accounting policies, principles, concept, convention and large, whatever that• is established, good or bad has a beginning. Therefore, this article intends to show how came about accounting and development to date. All these will help in the development of accounting and actualize the mandate of producing globally relevant accounting professionals.

1.1. What Is Accounting History?

Accounting as a profession, or career of study like other discipline has a beginning. Any discipline of study has a biography to enable the intended users obtain facts and idea concerning the discipline

Accounting history deals with fact findings behind the profession. To historian facts are of little value unless there are causes of the phenomena he studies. The reason behind accounting history is to appreciate some pattern of development in the field of study.

1.2. Uses of Accounting History

John (1989), identified the following three reasons for accounting

History

Recreational

Intellectual

Problem solving

Recreational: The intention of some researchers about accounting history is to get pleasure without the intention of learning anything useful or making any addition to knowledge some of the accountants considered the prestige. In the profession as an "Accountant" positioning themselves as "The lady in the Late"

Similarly, we may be fascinated by the phrase "king’s eyes and ears’ used to describe government auditors in Nigeria. These groups of accountants feel so pompous about the profession, because they belong to one of the accounting bodies in the Country.

Intellectual: The study of accounting history helps us to understand our past. And gives us an appreciation of how our current practices and problems came into being. For example, the source of the Accountant’s conservative approach to assets valuation is popularly identified with the late, Nineteenth century business environment.

Some persons (Accountants) have special, interest to trace the history of accounting, obtaining facts to reconcile issues that may confront them when discharging their profession duties.

Problem Solving: Some argue that the study of accounting history providers insights for the solution of present day accounting problems and helps predict future likely developments.

These are ambitious claims which must be treated with some caution, but we can probably agree that the subject has some contemporary relevance. For example, accounting, history throw light on the origin of particular policies, procedures. and practices. and therefore, helps us understand possible limitations on their present and future application; e.g. the weakness of the balance sheet as a measure of value becomes much more easy to understand when we realize that the system of double entry record keeping, on which it is based, was initially devised, not to facilitate the preparation of final account, but to enable business transactions to be recorded in an orderly and accurate manner, and to keep track of person accounts, and simple physical objects such as cash.

At the same time accountants, have used’ their knowledge of history of accounting to forecast recently future events.

1.3. Stewardship

This has to do with individual or a. group of individuals acting on behalf of someone else or group of persons to manage resource. At the end, the people expect account to be rendered to them.

For simplicity, we will call the person who owns the resource (as in the olden, goods the ‘Principal" and the person who is given possession of these goods the ‘agent’. The agent is normally expected to account to the principal for the resource in his possession, although the accounting function may be carried out by a third party called an audit, to check the accuracy of the information provided by the agent for the principal.

In earlier time, when the rate of lifestyle was loss, records were substantially in non-written form, oral account could only be rendered by the agent concerning the goods entrusted ion him. He orally accounts for the goods; while the auditors listened carefully and assess the accuracy. Ofthe statement made. In the case of taxes collected from local community, members of the public simply assembled in the community headquarter to hear list read out by the collecting agent.

Legal regulation of the accounting and audit process is designed to protect the "rate payer" (Principal) again.st the city Council (Agent). The need of protection is a fairly modern development; compare to the earlier times where the appointment of a particular individual as agent was sometime motivated by the degree of a control enjoyed by the principal. For example the use of shares as record keepers was favored in ancient Greece.

In medieval times the Lord of the manor was no doubt reassumed by the knowledge that the reporting agent (called the reeve); who was fraudulent or failed to prepare an account, would be tried in the manorial court.

In 19th Century, management was separated from the ownership and the growth, in power, of the board of Directors. In 20 Century, the development of legal regulations came in to ensure that the shareholders (investors) are not being cheated by the Directors

2. History and Development of Auditing

Historical Background: According to Balogun, A (2008) in the primitive days, man started his transactions with his fellowmen with the method of "TRADE BY BARTER" thus, the need for record keeping or auditing did not arise. However, the advent of money and the consequent increase in the number of transactions make the keeping of records and accounts and their audits unavoidable. Thus in these days bookkeepers read the accounts to the Auditors who heard them and testified to their correctness or otherwise. Hence the word "AUDITING" originated from the Latin word "AUDIO" or "AUDIRE" which means "to hear". Later on the complexity of modern business transactions necessitate the voluminous accounts keeping and ultimately the scientific examinations of accounts not called modern auditing.

2.1. Ancient Civilization of Accounting

This could be view as follows:

Babylonian civilization 2000 to 3000 BC.

Mohammud (2013) said that the profound political, social and cultural influence imposed upon the near East by the civilization known as the Ancient Babylonian Empire was the most pervasive in this historical period. ‘The City itself — Babylon positioned itself as a centre of pivotal historian developments for centuries. In 2017 BC Cyrus claimed to be the legitimate successors of the ancient Babylonian kings and the Avenger of Bel — Marduk, who ‘was assumed to be wrathful at the impiety of Nabonidus in removing the gods from their ancestral shrines to his, capital Babylon. He left the defence of his Kingdom to other, occupying himself with large tanks of land covering more than 2000 hectares of land where he controlled and governed for period, 2017 to 2035 BC, the said land used for agriculture by use of river Mesopotamia or irrigation.  

During this period trade was taking the cultivated land altercated consumers from other cities as well as other empire. The States of Sumer developed a trade and market economy based originally on the commodity money of the shekel which was a certain weight measure of barley, while the Babylonians and their city state later development the earliest system of price using metric of various commodities that was fixed in a legal code. The ‘early law codes from summer could be considered the first (written) financial law, and had many attributes still in used the current price system. Today, such as codified quantities of money for business deals (interest rate), fines for wrong doing, inheritance rules, laws concerning how private property ‘is to faxed or divided etc. and later in the year 2850 BC introduce coin and silver which were used in trade.

2.2. Egypt Civilization 1000-3000 BC

The success of ancient Egyptian civilization came partly from its ability, adapt to the conditions of the Nile River Valley. The predictable flooding and controlled irrigation of the fertile valley produced surplus crops, which fuelled social development and culture. With resources to spare, the administration sponsored mineral exploitation of the valley and surrounding desert regions, the early development of an independent writing system, the organization of collective construction and agricultural projects, trade with surrounding regions, and a military intended to defeat foreign enemies and assert Egyptian dominance. During the "Old Kingdom" (1050—2181 BC) major advances in architecture, art, and technology were made, fuelled by the increased agricultural productivity made possible by a well-developed central administration. Some of Ancient Egypt’s crowning achievements, the Giza pyramids and Great Sphinx, were constructed during the Old Kingdom. Under the direction of the vizier, state officials collected the success of ancient Egyptian civilization came partly from its ability, adapt to the conditions of the Nile River Valley. The predictable flooding and controlled irrigation

A combination of favourable geographical features contributed to the success of ancient Egyptian culture, the most important of which was the rich fertile soil resulting from annual inundations of the Nile River. The ancient Egyptians were thus able to produce an abundance of food, allowing the population to devote more time and resources to cultural, technological, and artistic pursuits. By the Fifth Dynasty, trade with Punt provided gold, aromatic resins, ebony, ivory, and wild animals such as monkeys and baboons. Egypt relied on trade with Anatolia for essential quantities of tin as well as supplementary supplies of copper, both metals being necessary for the manufacture of bronze (httpwww.management Journal. Info) Greek Civilization 1-1 000 BC

From about 750 BC the Greeks began, 250 years of expansion, settling colonies in all directions. To the east, the Aegean coast of Asia Minor was colonized first, followed by Cyprus and the coasts of Thrace, the Sea of Marmara and south coast of’ the Black Sea. Eventually Greek colonization reached as far northeast as present day Ukraine and Russia (Taganrog). To the west the coasts of lilyria, Sicily and Southern Italy were settled, followed by Southern France, Corsica, and even north-eastern Spain. Greek colonies were also founded in Egypt and Libya.

Athens owned one of the largest war fleets in ancient Greece. It. had over 200 triremes each powered by 170 oarsmen who were seated in 3 rows on each side of the ship. The art of ancient Greece has exercised an enormous influence on the culture of many countries from ancient times until the present, particularly in the areas of sculpture and architecture. In the West, the art of the Roman Empire was largely derived from Greek models In the East Alexander the Great’s conquests initiated several centuries of exchange between Greek, Central Asian and Indian cultures, resulting in Greco-Buddhist art, with ramifications as far as Japan. Following the Renaissance in Europe, the humanist aesthetic and the high technical standards of Greek art inspired generations of European artists. Well into the 19th century, the classical tradition derived from Greece dominated the art of the western world.

The ancient Greeks also made important discoveries in the medical field. Hippocrates was a physician of the Classical period, and is considered one of the most outstanding figures in the history of medicine. He is referred to as the "father of medicine" in recognition of his lasting contributions to the field as ‘the founder of the Hippocratic School of medicine. This intellectual school revolutionized medicine in ancient Greece, establishing it as a discipline distinct from other fields that it had traditionally been associated with (notably theory and philosophy), thus making medicine a profession. At its economic height, in the 5th and 4th centuries BC, ancient Greece was the most advanced economy in the world. According to some economic historians’, it was one of the most advanced preindustrial economies. This is demonstrated by the -average daily wage of the Greek worker which was, in terms of wheat, about 12 kg. This was more than 3 times the average daily wage of. An Egyptian worker during the Roman the ancient Greeks also made www.management Journal. Info.).

2.3. Early Islam Accounting System - 652 AD

The religion of Islam was founded in Makkah in the year 610’ A.D. with the revelation of the Quran to the Prophet Mohammad, peace be upon him: At that time Arabs in the Arabian Peninsula generally, and in Makkah especially, pursued a tribal life characterized by periods of-war between the various tribes. Tribes were not subject to any conventional or written rule except the rules of the head of the tribe. Significant change occurred with the establishment of the Islamic state in 622 A.D. in Al-Madienah Al Munaw’warah when the principle of brotherhood was introduced. This required that all Muslims- act as brothers with no regard to country of origin, race, language, colour, ethnic group or any other factor dividing human beings. This principle was the foundation for social harmonization among those who embraced Islam. Muslims denounced revenge supported each other financially and socially regardless of their historical differences. They understood Islam as being a comprehensive code for spiritual and material The religion of Islam was founded in Makkah in the year 610’ A.D. with the revelation of the Quran to the Prophet Mohammad, peace be upon him: At that time Arabs in the Arabian Peninsula generally, and in Makkah especially, pursued a tribal life characterized by periods of-war between the various tribes. Tribes were not subject to any conventional or written rule except the rules of the head of the tribe. Significant change occurred with the establishment of the Islamic state in 6

Commerce extended beyond the Arabian peninsula to arts of Europe, Africa and the Far East. According to Ekelund et al for/or five centuries, from 700 to 1200 Islam led the world in power, organization, and extent of government; in social refinements and standards of living; in literature, scholarship, science, medicine, and philosophy. It was Muslim science that preserved and developed Greek mathematics, physics, chemistry, astronomy, and medicine during this half millennium, while the West was sinking into what historians commonly call the Dark Ages. The expansion in trade promoted the development of a mechanism for ensuring adequate accountability •for cash, goods received and disbursed. The introduction and organization of zakat in 624 A.D. encouraged accounting for the purpose of zakat calculation and payment. This development was enhanced with the formal introduction of accounting books, concepts and procedures during the time of the second Caliph Omar bin Al-Kattab, who ruled between and 23 Hijri’iah6 [Com

The role of zakat was equally important for both the state and individuals, especially those engaged in business. Individual Muslims generally, and entrepreneurs specifically, were concerned with the development and implementation of accounting books, systems and recording procedures. This interest was inspired by the need to comply with the requirements of Shari’ah lslami’iah. An example of these requirements is the need for proper calculation and payment of zakat as the consequence of conducting business and making profits. This is provided, in 30 Aiah [verse] of 18 Surah [chapter] of the Quran. Furthermore, the Quran requires the writing and recording of debts and business transactions.

2.4. Presource of Islamic Accounting

It started when the Arabians first started to farm and trade within themselves this led to exchange of goods and services with their records, recorded to make signs, symbolic signs, lines dates, names, period, moon to explain transactions of various dimension as well as making signs and lines on the wall. In whallah otherwise known as SLATE with pen and Ink in Arabic languages, hence the assertion that civilization started from Arabian nation and to be precise civilization started from Egypt. Also Jericho, an ancient city located near the Jordan River in the Middle East and in the west bank precisely is estimated to be at least 11,000 years old and is one of the oldest and continuously inhabited cities. It is believed that this society used a barter system until about 7,500 B.C. when simple to kens and clay balls (with various shapes) came to represent inventory figures for agricultural goods including wheat, sheep and cattle. The user of tokens eventually expanded, and to kens and envelopes helped to identikit started when the Arabians first started to farm and trade within themselves this led to exchange of goods and services with their records, recorded to make signs, symbolic signs, lines dates, names, period, moon to explain transactions of various dimension as well as making signs and lines on the wall in whallah otherwise known as SLATE with pen

In accordance to Aiah 282 and 283 of the second Surah of AlBaqarah, the Aiah 282 is known as the debts Aiah. It is the longest Aiah in the Quran and specifies all the requirements for debts and business transactions.

The development and practice of accounting in Muslim society thus reflected Islam, as a comprehensive code of spiritual and material life. These developments and practices were documented by a number of early Muslim scholars from 150 H in numerous printed and handwritten books. Early Muslim scholars10 approached the practice of accounting in the Islamic state from a variety of perspectives. However, it should be mentioned that "the terms accounting and accountant were not used in the early and middle stages of the Islamic state. The exact date these terms came into use is not known but probably could be traced to the influence of colonization and the introduction of Western culture in the 19th century. The terms AlAmel, Mubasher, Al-Kateb, or Kateb Al-Mal were the common titles for accountant/bookkeeper and accounts clerk. These titles were used interchangeably in different parts of the Islamic state. The title Al-Kateb became the dominant title and was used to include any person assigned the responsibility the development and practice of accounting in Muslim society thus reflected Islam as a comprehensive code of spiritual and material life. These developments and practices were documented by a number of early Muslim scholars from 150 H in numerous printed and handwritten books.

Al-Mazenderany was one of the early Muslim scholars who documented the practice of accounting in Muslim society. While Al-Mazendarany’s writings have been referred to by Scholars and Otar in their study of governmental accounting practice in the near East during the II Khan Dynasty (1120-1350) and by Zaid the wider implications of his contribution to the history of accounting deserve exploration. Al-Mazenderany’s book, written in 765H can be consulted in the Sulaimani’yah Library, Istanbul. It appears that the book was neither printed nor commercially published in its original Ottoman language and no evidence has been found to indicate that it was translated into other languages. According to the Arabic pronunciation, the book title reads Risalah Falakiyyah Kitabus Siyakat. This is the source used by Solas and Otar and identified by them as "Risale-l Felekiyya", which is the Turki of the same title.

Al-Mazendarany asserted that other books on accounting had been written before his own. He stated that these books explained accounting practices in Muslim society and in the Middle East in particular. It is likely that these works were written long before 1,363 A.D. Al-Mazendarany further acknowledged the benefits he gained from earlier works when writing his book. Although the earlier works mentioned by AlMazendarany would prove valuable to students of the history of. accounting the search for them may be frustrated by the fact that the "states of medieval Middle East, with the exception of the Ottoman Empire, were destroyed, and, their archives, ceasin to serve any practical purpose, were neglected, scattered and lost. One work which predated AI-Mazendarany was Mafatieh Al-Uloom otherwise called (Keys of Sciences). This appeared in 365 H and. discussed the types of records maintained in the Dewans and the book used to record accounts.12 In one chapter dedicated to "Secretaryship". The technical terms thAl-Mazendarany asserted that. Other books on accounting had been written before his own. He stated that these books explained accounting practices in Muslim society and in the Middle East in particular. It is likely that these. works were written long before 1.363 A.D. Al-Mazendarany further acknowledged the benefits he gained from earlier works when writing his book. Although the earlier works mentioned by AlMazendarany would prove valuable to students of the history of. Accounting the search for them may be frustrated by the fact that the "states of medieval Middle East, with the exception of the Ottoman Empire, were destroyed, www.managernent Journal. Info.)

2.5. The Accounting in Italy in 1495

Throughout the double entries and the first accounting’ institution established in 1581 in Boudqua city, and also agreed that the historical accounting was divided in to four periods before 1495, 1495-1800 which emphasis on double entries, trading, and evolutions. However, the oldest discovered record of a complete double-entry system is the Messari (Italian: Treasurer’s) accounts of the Republic of Genoa in 1801.

The Messari accounts contain debits and credits journalized in a bilateral form, and contain balances carried forward from the preceding year, and therefore enjoy general recognition as a double- entry system. By the end of the 15th century, the bankers- and merchants of Florence, Genoa, Venice and Lubeck used this system widely, with the grant of a monopoly over a Specified territory. The best known example, established in 1801- 1955, was the British East India Company. Queen Elizabeth II granted it the exclusive right to trade with all countries to the east of the Cape of Good Hope. Corporations at this time would essentially act on the government’s behalf, bringing in revenue from its exploits abroad. Subsequently the Company became increasingly integrated with British military and colonial policy, just as most UK corporations were essentially dependent on the British navy’s ability to control trade routes.

2.6. America Accounting Profession

For individuals and businesses, accounting records in Colonial America often were very elementary. Most records of this period relied on the single-entry method or were simply narrative accounts of transactions. As rudimentary as they were, these records were important because the colonial economy was largely a barter and credit system with substantial time passing before payments were made. Accounting records were often the only reliable records of such historical transactions. Prior to the late I 890s, the terms bookkeeping and accounting were often used interchangeably b cause the recording/posting process was central to both activities. There was little need for financial statements (e.g. income statements) because most owners had direct knowledge of their businesses and, therefore, could rely on elementary bookkeeping procedures for information.

Although corporations (e.g., banks, canal companies) were present in the United States prior to the early I 800s, their numbers were few. Beginning in the late 1 820s, however, the number of corporations rapidly increased with the creation and expansion of the railroads. To operate successfully, the railroads needed cost reports, production reports, financial statements, and operating ratios that were more complex than simple recording procedures could provide. The accountant’s responsibility, therefore, expanded beyond simply recording entries to include the preparation, classification, and analysis of financial statements. As Oldroyd wrote in The Rise of the Accounting Profession, "the nineteenth century saw bookkeeping expanded into accounting. (http.www.managmentjounial info.com)

3. Stages in Accounting Development

Dabor (2008) identified the following four stages in accounting development:

Pre-CapitaHst period, 4000BC-1000 AD.

Commercial Capitalism 1000-1750.

Industrial Capitalism, 1760-1830

Financial Capitalism, 1830 to date

3.1. Pre-capitalist Period, 4000BC — 1000 AD

This period stated with the Mesopotamian Civilization and ended through Greek and Roman era to the period of the "dark ages". The need for record keeping initially stemmed, as far as we know, from the extensive trade which grew up within and outside the very fertile Mesopotamian valley. The records quite naturally assumed a form appropriate to an illiterate community, with changes made as society became more sophisticated. One primitive form of record was the knotted card. As a result improvements due to including inscriptions on day tablets, writing on papyrus and paper, during this period, rudimentary form of profit calculation were made from the record of goods and cash.

Features pre-capitalist period are stated below

Wealth tended to accrue to those who held religions, military and political power or status.

The era is non-economy period.

The account is mainly kept for public work by the government, lists of cattle and goods on landed estates, army pay sheets and so on. (.http.www. accountinghistory jounial info.com)

3.2. Commercial Capitalism 1000-1750 AD

At this era, money was invested in stock-in-trade and, when sold for cash, the, proceeds were used to acquire more stock. The investment was mainly short term and little was invested on fixed assets

The development of Mediterranean commerce during and after the crusades, which lasted from the eleventh, to the thirteenth centuries, signaled the advent of commercial capitalism.

Between 1000 — 1 300 AD, new social and economic order began to take shape in Britain. Itinerant Merchants, trade fairs, and towns were observed. As a result, there was improvement in business social and activities’ and politics.

In fourteenth Century, there were total reflection of commercial capitalism in certain parts of Europe, associated with geographical discovers, colonization, and a huge increase in overseas trade. Capitalists protected by •the Government controls, subsidies and monopolies made profits chiefly from the transportation of goods.

The rapidly changing, in the commercial activities and environment, lead from single system of accounting to book keeping. This will be further discuss later. (http.www.accounting historyjournal.info)

3.3. Industrial Capitalism, 1760-1830 AD

At this period, Britain experienced Industrial Revolution when Abraham Derby pioneered the production of high quality iron ore and invent new potential for industrial use. In addition, in Nineteenth Century, the use of machines in manufacturing, and the development of the factory system which, marked the emergence- of Industrial capitalism.

Abundance of labour also contributed to the industrial capitalism, Labour were surplus because of low infant mortality. Textiles were first industrialize, followed by pottery making, mining, iron making and transportation.

This period used double entry system instead of single system because it proved better for control purposes, and facilitated the preparation of final accounts which could be used as the basis for evaluation of performance and resources allocation decision.

It should be noted. That industrial revaluation occurred at different times in different countries. (http.www.accounting historyjournat. info)

3.4. Financial Capitalism, 1830 AD to Date

At this stage of development, fixed capital was relatively unreasonable to finance industrial Revolution, and the initial pressure for capital, on a large scale, slammed from the needs of the public utilities. Capital project such as the Liverpool and Manchester Railway was opened in 1830. This attracted the capital market where securities can be traded. Commercial activities at this time were on a large, scale. As a result, financial data was therefore required, on an unprecedented’ scale to help ensure that the planned project was soundly conceived, to monitor cost during the construction stage, and to report results when the line became operational These developments gave particular emphasis to a wide range of accounting: problems, including the following:

The separation of capital expenditure from revenue expenditure

The valuation of fixed assets;

The calculating of periodic profit and

The appropriate form and content of financial statements published for the shareholders (Investors)

The kinds of accounting, problems which resulted from railway development in the 1830s and 1840s gradually became more broadly based. Consequently, the demand for accountancy professionals became so high, professional bodies started springing up in Italian’ Monk and Mathematician, for Luca Pacioli, brought this system to record.

David and Wayne (1996) said that in 1494, Luca Pacioli, a Franciscan Monk and Mathematics Professor, Published the first known text to describe a "comprehensive double entry book-keeping system" which was developed in to the needs of the Italian Mercantile brandings practices in that period.

Dempsey and Matthew (1984) concluded that the double entry system replaced the single entry as a result of the industrial evolution, the increase in corporate business and the advent of income taxation, more sophisticated financial information was called for.

In Nigeria, record keeping has antecedents in the ancient kings and empire and prominent then was the periodic contributions which were recorded on the wall but the granting of royal character to Royal Niger Company was almost the same as the ones in Britain.

In 1965, the Institute of Chartered Accounts of Nigeria was established and, affiliated with the Professional. Institutes, in Britain and with legal regulatory framework, with successive Companies Acts adding to the, accounting and audit obligations imposed on Directors. (http.www. managementjournal.info)

4. Double Entry/Book Keeping

As discussed above, Accounting is as old as the exchange (whether barter or monetary) that gradually developed with civilization. The earliest written records, including the scriptures contain references to what now is called accounting.

Prior to the 15 Century accounting had no well-defined pattern except that it developed in answer to governing and trading needs of the era.

Long and Kazeem (2008), said that "Lucça Paciolo" introduced the double entry system to replace single entry system in 1494 described "Italian Method". In his famous streetwise Summa De. Arithmetical Geometrical proportion at Proportationalita in 1494 in Venice, Revered father Lucca Paciolo described the double entry system by giving insight into the reasoning behind accounting records.

Peter (2004) said that the modern system of accounting, the double entry principle or duality concept developed after about AD 1.200 in the Roman Empire. Many Nigerians trained abroad came back as professional accountants and became members of the Institute. The institute was charged with the responsibilities of regulating accounting procedures and practice in Nigeria.

In 1982, Nigeria Accounting Standard Board was established to set standards to guide Accounting Operation. Members including Central Bank of Nigeria, Finance Ministry, Nigeria Accounting Teachers Association, Chambers of Commerce etc.

Now in Nigeria, there are two recognized Accounting bodies namely institute of Charted Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria, (ANAN).

5. Conclusion

Since the inception of trade and business, civilization understood the need for accurate record. Therefore in light of new facts views are reversed. Accounting, as it is practice today, evolved gradually over the years, and we cannot pin – pant the time of the first accounting system Accounting arose to satisfy people’s needs for information, and its origin pre dates recorded and history. Member of ancient tribes undoubtedly used some rudimentary ruling house and to maintain social order means of accounting to trivial chiefs, kings and their period, dynasty and their reigns. In addition, accounting system was also needed to keep track of trading activities between tribes. It was such a perfect fit for a long unfulfilled business need that it was like giving water to the thirsty.

As time progressed, in terms of commercial activities, accounting became needed to provide information about trading and other early business ventures. However, with the industrial evolution, the increase in corporate business and the advent of income taxation more sophisticated financial information was called for.

Any conclusion may be tentative as additional information may lead to different interpretations.

Accounting concepts and practices were adapted to meet the expectation of times. It is an evolution process that is still on until the end of the world.

The discovery of past events is difficult, but findings out the reasons for there are even more demanding. Never in history has one particular contribution served to shape and mode business in the way that accounting has done. The historical concept of accounting provides clues and explanations for most of the important events that shape the development of modern accounting.

The history and development of Accounting will be useful to accounting users, providers, certifiers, trainees, trainers, and accounting professional bodies in reflecting whether they have played a major role in accounting development.


References

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