Unit 1: Introduction
to Accountancy Education
Definition
“Accounting is the
art of recording, classifying and summarizing in significant manner and in
terms of money, transactions and events which are, in parts at least of a
financial character and interpreting the result thereof”
History of
Accountancy Education
ü 1494-Double
bookkeeping was published by Luca
ü 1714- Gentleman
accomptant was published which is showing how to prepare double entry
bookkeeping.
ü 1759- Portuguese
school of commerce was founded in Lisbon which studies textbook showing how to
keep double entry bookkeeping.
ü 1951- The institute
of chartered accountant of Scotland was formed.
ü 1974- The American
accounting association published its accounting education series.
ü 1989-1992- Internal
Journal begins.
ü Currently almost all the country follows GAAP and IFRS however some country developed own standards based on IFRS.
Role
of accountancy in education
Accounting serves a vital role in managing the financial aspects of schools and educational institutions. It involves tasks such as budgeting, tracking expenses, and ensuring that funds are allocated appropriately. By keeping the records of financial resources, accounting helps schools make informed decisions about resource allocation, ensuring that they can provide quality education while staying within their financial means. Additionally, accounting helps maintain transparency and accountability in financial transactions, which is essential for building trust and ensuring that funds are used effectively.
Relationship between accountancy and other disciplines
Accountancy is closely related to various disciplines, such as economics, finance, and business administration. It provides financial information that helps in decision-making and understanding the financial health of an organization. By applying the 4 C's (critical thinking, communication, collaboration, and creativity), accountants can analyze data, communicate financial information effectively, work in teams, and find innovative solutions to financial challenges.
Nature and scope of accountancy education
its important to teach/introduce accountancy education in Bhutanese education system because it plays vital role in organizational management, taught in school system aligns with what is practiced in the real field, due to rapid development and expansion of Bhutanese economy and its participation in global financial transaction, it needs to introduce accountancy curriculum in Bhutanese education system.
Evolution of accounting process and system
Accounting system was there during the olden days but during that time most of the business used to do manually bookkeeping. This type of keeping records large amount of data may lead to misuse of information and misplace of information so that business or organization may not able to provide correct information. However due to modernization it was replace by introducing computerized accounting system such as tally prime and RBW.
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