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Growth of accounting Knowledge

Growth of accounting Knowledge. Accounting knowledge ( principles , practices , systems) has grown much over the period of about 200 years from (1775-2000). (1775-1850):

leandra-knapp
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Growth of accounting Knowledge

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  1. Growth of accounting Knowledge • Accounting knowledge ( principles , practices , systems) has grown much over the period of about 200 years from (1775-2000). (1775-1850): 1- Business firms , proprietary owners, were more interested in knowing their capital (Assets – Liabilities),emphasis on balance sheet during this period. 2- Assets were valued at current value.

  2. Growth of accounting Knowledge (1850-1900): The basic accounting principles and assumptions (operating guidelines) developed during this periods. 1- Growth of corporations between this period led the development of separate entity assumption . There was greater emphasis on income rather than on balance sheet . 2- This resulted in development of accounting concepts of income and the periodicity assumption. 3- A company was regarded as going concern; and fixed assets were valued at original cost less depreciation.

  3. Growth of accounting Knowledge 4- separate entity led to emphasis on auditing Financial statement by Charted accountants. 5- The revenue principles , the cost principles and the matching principles began to be applied in the construction of income statement. 6- Inventory and fixed assets began to be valued at historical cost due to stewardship reporting.

  4. Growth of accounting Knowledge (1900-1950): 1-As for development of this period , stewardship reporting did not remain all that significant around 1950 . Cost accounting and management accounting development during this period . 2- Grater emphasis on financial statement for decision-making 3- Tax accounting , advising and planning were developed. 4- Auditing techniques , standers and guidelines were issued by the professional bodies. 5- Governmental accounting was improved upon to make it more useful in planning, budgeting and controlling.

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