HISTORICAL BACKGROUND OF ACCOUNTING

HISTORICAL BACKGROUND OF ACCOUNTING

According to Warram Scar (1997), accounting system therefore refers to the method by which financial data about an organization or as activities are collected, processed, stored and distributed to members of the organization or firm and other interested parties.

The account of steward of the commune of Genoa, a city in Italy for the year 1340 are reported to be the earliest set of double entry record. This preload of double entry system was referred to as the Italian method which gradually spread to the rest of Europe and the world.

The spread of the system was accelerated with the population in 1444 on the know Texlan Italian Monk system on book keeping by an crodile scholar of his time. Of course the title of the book is in Italian language but was translated into English.

In English it means “Every thing about arithmetic, geometry and proportion” Even though the book was not all about double entry, it was only chapter that dealt with double entry book-keeping. This chapter was however popular among student that in 1504, of organization which uses accounting.

Legal entities ranging from individuals to government employed accounting to obtain information on the financial condition and performance of the entity in question.

Moreover, just as it is necessary to have a good command of the grammar of a language before any literature can be studied so as to understand what is clearly and correctly in term of the grammatical convention of the language so also to interpret accounting information appraisal, it is necessary for this reason, it is important to be familiar with certain basic concept and convention of accounting so that words and terms used in accounting are understood in their technical sense.

It is possible to consider that any data or information which is obtained from or create in the accounting system of an organization or firm is known as accounting information, whether contained in the financial statement a special report or verbal statement.

Accounting information of the types that might be contain in a complete or partial financial report i.e. statement of comprehensive income and Lucca Paclole published his separate book whose title the “Perfect School of Merchant” the influence of Italy on accountings profession has fall in the modern time, almost the point of insignificant much of the current thinking in the profession is merely dictated by two country, the United Kingdom and the United State of America.