Behavioral Research
Positive Era
Normative Era
Important to understanding, appreciation of present and future practices.

Introduction

General Scientific Period
Accounting Pedagogy

Development of Accounting Theory

Need to study to contribute to
Accounting Policy

History Development
Of Accounting
Accounting Practices

* Explain current practice to better understood accountant and non-accountant * Evaluate practice, provide frame and reference to judge current practice. * Facilitate the development of future practice

Purpose

Early History

First double entry books known to exist are Massari of Genoa, 1340

Definition of Accounting Theory
Age of record keeping

Aimed at maintaining intergrity and discovering missappropriation

Using Arabic numbers. More easy and slowly it prevailed.
A set of broad principles that provide a general frame of reference by which accounting practice can be evaluated and guides the development of new practices and procedures.
Has history about Roman numerals which made calculation and understanding more difficult which is no zero value and it can’t be adapted.

The Birth of Double Entry Accounting

Reasons to explain the role of double entry
Factors that make bookkeeping presence in ancient.
Luca Pacioli’s Contribution

Double entry contributed to a new attitude towards economic life

In 1494, they published Summa de Arithmetica, Geomeria, Proportioni et Proportionalita. The book include twho chapters, Computis and Scripturis
The intervention of writing

The acquisition was aided and propelled by the refinement of economic calculation

Introduction of Arabic numbers

It permits a separation of ownership and promotes the growth of the large joint stock company
The diffusion of literacy

The rise of literacy

The new rationalism was further and enhanced by systematic organization

The existence of standard medium of change * The age was how the period between the advent of double entry and Industrial Revolution * Bookeeping spread slowly * The ‘stagnation’ of the era relates to the period’s inability to resolve some of the gathering technical problems of accounting * The Industrial Revolution in England posed new problems for accountants * The railways companies were typical new enterprises generated by the new industrial and scientific age * Many issues, valuation of fixed assets being settled by adopting concepts of prudence, going concern, matching amd generally historical cost less depreciation as a standard of measurement.
Age of Stagnation
Management Contribution Phase (1900-1933)
The Age of Scientific Accounting
Various group implementing a mix approaches
The Political Phase
The Professional Contribution Phase (1959-1973)
Institutional Contribution Phase (1933-1946)
Four phases process of Development
Development
Development of Accounting Principles in USA