Chapter 1Sejarah dan pengembangan akuntansi

Awal sejarah AkuntansiThere is evidence of double entry accounting in many early civilisations:ChaldeanBabylonianAssyrianSumerianEgyptianChineseGreekRoman

Awal sejarah AkuntansiC. Littletons seven preconditions for the emergence of systematic bookkeeping are:the art of writingarithmeticprivate propertymoneycreditcommercecapital

Origins of double-entry accountingAlso known as Italian bookkeeping because it was promulgated by Italian tradersFirst-known double-entry accounting books are those of Massari of Genoa in 1340Luca Pacioli, a Franciscan friar, is credited with introducing double-entry bookkeeping because his is the first published discussion on the topic (1494), in which:he described the use of debits and credits to secure a double entryhe advised the computation of a periodic profit and the closing of the books

Cushings 11 developments 1.Introduction of specific journals2.Periodic financial statements3.Double-entry system extended to other types of organisations, e.g. monasteries, the State4.Separate inventory accounts for different types of goods5.Accounting acquired a better status, characterised by:need to inform absentee investorsneed for auditingneed for cost accountingreliance on concepts of continuity, periodicity and accrual

Cushings 11 developments (contd)6.Evolution of three methods of treating fixed assets by the 18th century7. Development of depreciation methods from 1915 onwards8.Emergence of cost accounting in the 19th century9.Development of techniques of accounting for prepayments and accruals in the second part of the 19th century10. Development of fund statements (late 19th and 20th centuries)11. Development of accounting methods for complex issues

Pengembangan prisnsip-prinsip AkuntansiManagement contribution phase (190033):management had complete control over the selection of financial information disclosed in annual reportsInstitution contribution phase (193346) and professional contribution phase (195973):professional bodies played a significant role in developing principlesOvert politicisation phase (1973present):movement towards a politicisation of accounting

Pase Kontribusi Manajemen (190033)Characterised by ad hoc solutions to urgent problems and controversiesLack of theoretical supportFocus on minimisation of income taxesSmoothing of earningsComplex problems avoided in favour of expedient solutions

Pase Kontribusi Manajemen (190033)Significant influences of the periodInterest as a cost controversy:the need to invest large amounts of capital for long periods increased overheadthe inclusion of overhead in product cost became an issueGrowing effect of taxation of business income

Pase Kontribusi Manajemen (190033)Arguments for improvement in standards of financial reportingFrom 1900, New York Stock Exchange required corporations to publish annual financial statementsCalls for protection of investorsBoard of Examiners established in 1917 to create a uniform certified practising accountant (CPA) examination

Pase Kontribusi Institusi (193346) Increasing role of institutions on development of accounting principles:creation of the Securities and Exchange Commission to administer federal investment lawsemergence of accounting principlescompanies were permitted to choose their accounting methods but had to disclose themCommittee on Accounting Procedure (CAP) began issuing accounting research bulletins (ARBs) in 1938

Pase Kontribusi Profesional (195973)Establishment of the Accounting Principles Board (APB) and the Accounting Research Division The APB was unsuccessful and was criticised for being over-dependent on professional associations:no established theoretical frameworkauthority of its statements not clear-cutalternative treatments allowed flexibility in the choice of accounting techniques

Overt politicisation phase (1973present)Development of a theoretical framework Emergence of various interest groupsMetcalf report released:charged that US big eight accounting firms monopolise the auditing of large corporations and control the standard-setting processmade recommendations aimed at enhancing corporate accountability

History of accounting in AustraliaSame major phases as US accountingFor much of the 19th century, most colonies adopted the British model of companies legislationSydney Stock Exchange (SSE) also influenced accounting practices:from 1925, SSE demanded publication of balance sheets and profit-and-loss accountssuch disclosures sometimes preceded legislation by many years

Institutional contribution phase in AustraliaProfessional opinions on the general principles of accounting practice were released in 1937The Commonwealth Institute of Accountants (CIA) appointed a Committee on Accounting Principles (CAP) in 1938The Institute of Chartered Accountants in Australia (ICAA) issued the first in a series of Recommended Accounting Principles in 1944

Institutional contribution phase in Australia (contd)Corporate collapses and the 1960s mining share boom meant a regulatory agency was required to protect investors:1974: The Interstate Corporate Affairs Commission was created to bring about uniformity in state companies legislation1979: The National Companies and Securities Commission (NCSC) was established1981: All states adopted the Commonwealth Companies Act1989: The Australian Securities Commission (ASC) was created to replace the NCSE

Professional contribution phase in AustraliaIn the 1960s, the ICAA created several research committees on accounting principlesIn 1965, the Accounting Research Foundation was established by the two accounting bodies, and:was responsible for creating accounting standards in Australiacontributed to the development of a conceptual framework

Politicisation of accounting phase in AustraliaCorporate collapses of the 1960s led to the introduction of legislation to regulate accounting:1983: Companies and Securities Legislation (Miscellaneous Amendments) Act 1983 (Cth) required companies to comply with ASRB-approved accounting standards1991: Australian Accounting Standards Board (AASB) was established

Link between accounting and capitalismThe Sombart thesis argues that double-entry bookkeeping has contributed to the development of capitalism because:it permits the capitalist entrepreneur to plan, predict and measure the impact of their activitiesthe separation of owners and business allows the growth of the corporationYamey argues that double-entry bookkeeping was originally used only as a record of transactions not to keep track of profits and capital