History of Accounting Evolution

Ancient Civilizations

• The first known accountant was "Jerry of Jericho," who kept track of temple or king's granary inventory.
• In ancient Egypt, accountants were called the "eyes and ears" of the king, and they used inscribed bone labels to record inventory owners, amounts, and suppliers around 5300 years ago.
• The token system was used in Sumeria and Mesopotamia to record transactions, with clay "envelopes" or tablets dating back to around 4000 BC.

Development of Accounting

• In ancient Greece, the public economy had a highly developed system of accounting and auditing, with accounts kept by clerks and controlled by "checking clerks."
• The invention of money in the form of coins occurred simultaneously in China, India, and Greece.
• The Roman government kept detailed financial information, including the Res Gestae Divi Augusti, which listed public revenues and expenditures.

Middle Ages and Renaissance

• Luca Pacioli, the "Father of Accounting," was born in the 14th century and wrote about methods of recording merchant transactions, including double-entry bookkeeping.
• The 17th century saw the thorough study of accounting and development of accounting theory, with the rise of cost accounting.

Industrial Revolution and Modern Era

• William Seward Burroughs invented the first workable adding machine in 1885, leading to a dramatic increase in production.
• The modern, formal accounting profession emerged in Scotland in 1854 with the Institute of Accountants in Glasgow, creating the profession of the Chartered Accountant (CA).
• In the 19th century, modern accounting began in Europe and America, with the development of accounting standards like GAAP, IFRS/PFRS, and IAS/PAS.

Present Times

• Accounting standards continue to be developed and improved to suit the changing needs of businesses and organizations.
• The most notable developments in the present include the increased dependence on digitalization and smart technologies, continued globalization of the accounting profession, and the imposition of increased regulations on the profession.