Page 1 LECTURE 1: INTRODUCTION Page 2 LECTURE 1: INTRODUCTION History and development of accounting record Ancient accounting record: Using system called “stewardship”. The document facilitate the owner to control and identify their asset, which is under the custody of the steward Renaissance in Italy: Accounting technique using double entry book-keeping was introduced. A system to ensure that financial information was recorded efficiently and accurately. Page 3 LECTURE 1: INTRODUCTION History and development of accounting record Ancient accounting record: Using system called “stewardship”. The document facilitate the owner to control and identify their asset, which is under the custody of the steward Renaissance in Italy: Accounting technique using double entry book-keeping was introduced. A system to ensure that financial information was recorded efficiently and accurately. Industrial Age: In 19 th century the emergence of large corporations, separation of the owners from the managers, makes the businesses reports became more complex. Needs to prepare financial statements to the shareholders. Post Industrial Age: Accounting is a need for decision making – information element. Page 4 LECTURE 1: INTRODUCTION History and development of accounting record Ancient accounting record: Using system called “stewardship”. The document facilitate the owner to control and identify their asset, which is under the custody of the steward Renaissance in Italy: Accounting technique using double entry book-keeping was introduced. A system to ensure that financial information was recorded efficiently and accurately. Industrial Age: In 19 th century the emergence of large corporations, separation of the owners from the managers, makes the businesses reports became more complex. Needs to prepare financial statements to the shareholders. Post Industrial Age: Accounting is a need for decision making – information element. What is accounting? Accounting is an information system that provides quantitative, financial information to stakeholders about the economic activities and condition of a business so that they can make business/economic decisions. Page 5 LECTURE 1: INTRODUCTION History and development of accounting record Ancient accounting record: Using system called “stewardship”. The document facilitate the owner to control and identify their asset, which is under the custody of the steward Renaissance in Italy: Accounting technique using double entry book-keeping was introduced. A system to ensure that financial information was recorded efficiently and accurately. Industrial Age: In 19 th century the emergence of large corporations, separation of the owners from the managers, makes the businesses reports became more complex. Needs to prepare financial statements to the shareholders. Post Industrial Age: Accounting is a need for decision making – information element. What is accounting? Accounting is an information system that provides quantitative, financial information to stakeholders about the economic activities and condition of a business so that they can make business/economic decisions. The different between accounting and bookkeeping: Accounting: “a process of identifying, recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the result thereof” (AICPA, 1961) Bookkeeping: “ only involves activities of collecting and recording financial data”Read More