History of accounting timeline.Here is a timeline of some of the key events in the history of accounting:
History of accounting timeline
- 7000-4000 BCE: Early forms of accounting were used in ancient civilizations such as Mesopotamia, Egypt, and the Indus Valley. These included keeping records of grain and livestock.
- 1494 CE: Luca Pacioli, an Italian mathematician, wrote the first book on double-entry accounting, called “Summa de Arithmetica, Geometria, Proportioni et Proportionalita”.
- 1800s: Accounting became more formalized as businesses grew in size and complexity. The development of railroads and other large-scale industries led to increased demand for accurate financial reporting.
- 1929: The stock market crash of 1929 led to the creation of the Securities and Exchange Commission (SEC) in the United States, which regulates financial reporting and accounting practices for public companies.
- 1950s: The development of computers and electronic data processing revolutionized the accounting profession. It became possible to process large amounts of data quickly and accurately.
- 1970s: The Financial Accounting Standards Board (FASB) was established in the United States to set accounting standards for public companies.
- 1990s: The International Accounting Standards Board (IASB) was formed to create a set of global accounting standards, known as International Financial Reporting Standards (IFRS).
- 2000s: The Sarbanes-Oxley Act of 2002 was passed in the United States in response to accounting scandals such as Enron and WorldCom. It introduced stricter financial reporting and auditing requirements for public companies.
- 2010s: The rise of blockchain technology is poised to transform the accounting profession, allowing for secure and transparent record-keeping.
Overall, the history of accounting is marked by a gradual evolution from simple record-keeping to a sophisticated system of financial reporting and analysis.
