The early development of accounting was closely related to developments in writing, counting, and money. "another part of the explanation as to why accounting employs the numerical metaphor is that money, numbers and accounting are interrelated and, perhaps, inseparable in their origins: all emerged in the context of controlling goods, stocks and transactions in the temple economy of Mesopotamia." The development of accounting, along with that of money and numbers, may be related to the taxation and trading activities of temples: See also: History of mathematics, History of writing, and History of moneyĪccounting records dating back more than 7,000 years have been found in Mesopotamia, and documents from ancient Mesopotamia show lists of expenditures, and goods received and traded. Accounting began to transition into an organized profession in the nineteenth century, with local professional bodies in England merging to form the Institute of Chartered Accountants in England and Wales in 1880. Early modern accounting had similarities to today's forensic accounting. Accountants often belonged to the same associations as solicitors, who often offered accounting services to their clients. The modern profession of the chartered accountant originated in Scotland in the nineteenth century. The Italian Luca Pacioli, recognized as The Father of accounting and bookkeeping was the first person to publish a work on double-entry bookkeeping, and introduced the field in Italy. His book Arthashastra contains few detailed aspects of maintaining books of accounts for a sovereign state. In India, Chanakya wrote a manuscript similar to a financial management book, during the period of the Mauryan Empire. By the time of the Roman Empire, the government had access to detailed financial information. The early development of accounting dates to ancient Mesopotamia, and is closely related to developments in writing, counting and money and early auditing systems by the ancient Egyptians and Babylonians. 10 As their commercial enterprises flourished, the Italians provided manuals for merchants, which spread the ideas of commerce throughout Europe.The history of accounting or accountancy can be traced to ancient civilizations. The Florence Company of Bardi was a multinational bank that provided loans to various kings, including Edward III of England. The first multinational corporations were located in Italy but had branches across Europe. Organizations called corporations developed to carry out these commercial activities, not only within a country, but among many countries. The increasing scope and complexity of these commercial activities may well have prompted such inventions as double-entry bookkeeping and motivated companies to hire business managers to coordinate and direct their operations (Witzel, 2002). Their industrious countrymen were improving mining operations and developing the shipping and banking industries, which created the underlying conditions for the migration of the Italian Renaissance’s commercial and intellectual culture from its native Italian soil (Haynes, 1991). In Italy, we see the emergence of modern enterprise and the emergence of the need for people to run these new enterprises. The combination of these factors led to the creation of new wealth as a new emphasis on trade and wealth creation developed. The emergence of the basic printing press allowed for these ideas and knowledge to spread throughout Europe. The Italian Renaissance saw the reintroduction of classical knowledge and the emergence of new knowledge and learning, much of which had economic and business implications. In the 14th century, a movement of cultural change and astounding achievements in all spheres of life began in northern Italy. These expeditions, called the Crusades, brought wealth and technological advances into Europe from the Muslim world. In the 11th, 12th, and 13th centuries, Europeans went on a series of military expeditions to recover the Holy Land from the Muslims. Understand how the Italian Rennaisance affected the progression of management theory.
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