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Sunday, May 19, 2024 is Accountant's Day or Accounting Day 2024. How Accounting VIPs Celebrate Accounting Day Today is Accountant Day (aka

Cut and pasted from Wiki like the previous answer.

Which is a surprise for a top contributer. They usually take their time, and focus on quality rather than quantity.

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Webpage: Accountancy

Accountancy (profession) or accounting (methodology) is the measurement, disclosure or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and public agencies. The terms derive from the use of financial accounts. Accounting is also widely referred to as the "language of business".

Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated; for public companies, this information is generally publicly-accessible. By contrast management accounting information is used within an organization and is usually confidential and accessible only to a small group, mostly decision-makers. Tax Accounting is the accounting needed to comply with jurisdictional tax regulations.

Practitioners of accountancy are known as accountants. There are many professional bodies for accountants throughout the world. Many allow their members to use titles indicating their membership or qualification level. Examples are Chartered Certified Accountant (ACCA or FCCA), Chartered Accountant (FCA, CA or ACA), Management Accountant (ACMA, FCMA or AICWA), Certified Public Accountant (CPA) and Certified General Accountant (CGA).

Auditing is a related but separate discipline, with two sub-disciplines: internal auditing and external auditing. External auditing is the process whereby an independent auditor examines an organization's financial statements and accounting records in order to express an opinion as to the truth and fairness of the statements and the accountant's adherence to Generally Accepted Accounting Principles (GAAP), or International Financial Reporting Standards (IFRS), in all material respects. Internal auditing aims at providing information for management usage, and is typically carried out by auditors employed by the company, and sometimes by external service providers.

Accounting/accountancy attempts to create accurate financial reports that are useful to managers, regulators, and other stakeholders such as shareholders, creditors, or owners. The day-to-day record-keeping involved in this process is known as bookkeeping.

Accounting is the measurement of financial transactions which are transfers of legal property rights made under contractual relationships. Non-financial transactions are specifically excluded due to conservatism and materiality principles.

At the heart of modern financial accounting is the double-entry bookkeeping system. This system involves making at least two entries for every transaction: a debit in one account, and a corresponding credit in another account. The sum of all debits should always equal the sum of all credits, providing a simple way to check for errors. This system was first used in medieval Europe, although claims have been made that the system dates back to Ancient Rome or Greece.

According to critics of standard accounting practices, it has changed little since. Accounting reform measures of some kind have been taken in each generation to attempt to keep bookkeeping relevant to capital assets or production capacity. However, these have not changed the basic principles, which are supposed to be independent of economics as such. In recent times, the divergence of accounting from economic principles has resulted in controversial reforms to make financial reports more indicative of economic reality.

Accountancy's infancy dates back to the earliest days of human agriculture and civilization (the Sumerians in Mesopotamia), when the need to maintain accurate records of the quantities and relative values of agricultural products first arose. Simple accounting is mentioned in the Christian Bible (New Testament) in the Book of Matthew, in the Parable of the Talents (Matt. 25:19). The Islamic Quran also mentions simple accounting for trade and credit arrangements (Quran 2: 282).

Twelfth-century CE Arab writer Ibn Taymiyyah mentioned in his book Hisba (literally, "verification" or "calculation") detailed accounting systems used by Muslims as early as in the mid-seventh century CE. These accounting practices were influenced by the Roman and the Persian civilizations that Muslims interacted with. The most detailed example Ibn Taymiyyah provides of a complex governmental accounting system is the Divan of Umar, the second Caliph of Islam, in which all revenues and disbursements were recorded. The Divan of Umar has been described in detail by various Islamic historians and was used by Muslim rulers in the Middle East with modifications and enhancements until the fall of the Ottoman Empire.

Luca Pacioli and the birth of modern accountancy

The first book on accounting was written by a Croatian merchant Benedetto Cotrugli, who is also known as Benedikt Kotruljević, from the city of Dubrovnik. During his life in Italy he met many merchants and decided to write Della Mercatura et del Mercante Perfetto (On Trade and the Perfect Merchant) in which he elaborated on the principles of the modern double-entry book-keeping. He finished his lifework in 1458. However, his work was not published until 1573, as a result of which his contributions to the field have been overlooked by the general public.[citation needed]

For this reason, Luca Pacioli (1445 - 1517), also known as Friar Luca dal Borgo, is credited for the "birth" of accounting. His Summa de arithmetica, geometrica, proportioni et proportionalita (Summa on arithmetic, geometry, proportions and proportionality, Venice 1494), a synthesis of the mathematical knowledge of his time, includes the first published description of the method of keeping accounts that Venetian merchants used at that time, known as the double-entry accounting system. Although Pacioli codified rather than invented this system, he is widely regarded as the "Father of Accounting". The system he published included most of the accounting cycle as we know it today. He described the use of journals and ledgers, and warned that a person should not go to sleep at night until the debits equaled the credits! His ledger had accounts for assets (including receivables and inventories), liabilities, capital, income, and expenses — the account categories that are reported on an organization's balance sheet and income statement, respectively. He demonstrated year-end closing entries and proposed that a trial balance be used to prove a balanced ledger. His treatise also touches on a wide range of related topics from accounting ethics to cost accounting.

define accounting?

Accountancy (profession) or accounting (methodology) is the measurement, disclosure or provision of assurance about information that helps managers and other decision makers make resource allocation decisions. Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated. Auditing, a related but separate discipline, is the process whereby an independent auditor examines an organization's financial statements and accounting records in order to express an opinion—that conveys reasonable but not absolute assurance—as to the truth and fairness of the statements and the accountant's adherence to Generally Accepted Accounting Principles, in all material respects. At the heart of accounting is the measurement of financial transactions which are transfers of legal property rights made under contractual relationships. Non-financial transactions are specifically excluded due to conservatism and materiality principles.

Practitioners of accountancy are known as accountants. There are many professional bodies for accountants throughout the work. Many allow their members to use titles indicating their membership. Examples are Chartered Accountant and Certified Public Accountant.

Accountancy attempts to create accurate financial reports that are useful to managers, regulators, and other stakeholders such as shareholders, creditors, or owners. The day-to-day record-keeping involved in this process is known as bookkeeping.

At the heart of modern financial accounting is the double-entry bookkeeping system. This system involves making at least two entries for every transaction: a debit in one account, and a corresponding credit in another account. The sum of all debits should always equal the sum of all credits. This provides an easy way to check for errors. This system was first used in medieval Europe, although claims have been made that the system dates back to Ancient Greece.

According to critics of standard accounting practices, it has changed little since. Accounting reform measures of some kind have been taken in each generation to attempt to keep bookkeeping relevant to capital assets or production capacity. However, these have not changed the basic principles, which are supposed to be independent of economics as such.

Contents [hide]

1 History

2 Accountancy qualifications and regulation

3 Accounting scholarship

4 The "Big Four" accountancy firms

5 Size of market - UK

6 Topics in accounting

6.1 Auditing

6.2 Types of accountancy

6.3 Accountancy Principles

7 Accounting concepts

8 Accounting conventions

8.1 Use of computers in accountancy

8.2 Accounting standards

8.3 Agencies

8.4 Accounting standard-setting bodies

8.5 Auditing standards-setting bodies

9 See also

10 Finding related topics

11 External links

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History

Accountancy's infancy dates back to the earliest days of human agriculture and civilization (the Sumerians in Mesopotamia), when the need to maintain accurate records of the quantities and relative values of agricultural products first arose.

The art of accountancy based upon a logical mathematic system (double-entry book-keeping) must certainly have been understood in Italy before 1495, when Luca Pacioli (1445 - 1517), also known as Friar Luca dal Borgo, published at Venice his treatise on bookkeeping.

The first known English book on the science was published in London by John Gouge or Gough in 1543. It is described as A Profitable Treatyce called the Instrument or Boke to learn to knowe the good order of the kepyng of the famouse reconynge, called in Latin, Dare and Habere, and, in English, Debitor and Creditor.

A short book of instructions were also published in 1588 by John Mellis of Southwark, in which he says, "I am but the renuer and reviver of an ancient old copie printed here in London the 14 of August 1543: collected, published, made, and set forth by one Hugh Oldcastle, Scholemaster, who, as appeareth by his treatise, then taught Arithmetics, and this booke in Saint Ollaves parish in Marko Lane." John Mellis refers to the fact that the principle of accounts he explains (which is a simple system of double entry) is "after the forme of Venice".

The very interesting and able book described as The Merchants Mirrour, or directions for the perfect ordering and keeping of his accounts formed by way of Debitor and Creditor, after the (so termed) Italian manner, by Richard Dafforne, accountant, published in 1635, contains many references to early books on the science of accountancy. In a chapter in this book, headed "Opinion of Book-keeping's Antiquity," the author states, on the authority of another writer, that the form of book-keeping referred to had then been in use in Italy about two hundred years, "but that the same, or one in many parts very like this, was used in the time of Julius Caesar, and in Rome long before." He gives quotations of Latin book-keeping terms in use in ancient times, and refers to "ex Oratione Ciceronis pro Roscio Comaedo"; and he adds:

"That the one side of their booke was used for Debitor, the other for Creditor, is manifest in a certain place, Naturalis Historiae Plinii, lib. 2, cap. 7, where hee, speaking of Fortune, saith thus:

Huic Omnia Expensa.

Huic Omnia Feruntur accepta et in tota Ratione mortalium sola

Utramque Paginam facit."

An early Dutch writer appears to have suggested that double-entry book-keeping was even in existence among the Greeks, pointing to scientific accountancy having been invented in remote times.

There were several editions of Richard Dafforne's book printed---the second edition having been published in 1636, the third in 1656, and another was issued in 1684. The book is a very complete treatise on scientific accountancy, beautifully prepared and containing elaborate explanations. The numerous editions tend to prove that the science was highly appreciated in the 17th century. From this time on, there has been a continuous supply of literature on the subject, many of the authors styling themselves accountants and teachers of the art, and thus proving that the professional accountant was then known and employed.

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Accountancy qualifications and regulation

Main article: Accountancy qualifications and regulation

The requirements for entry in the profession of accounting vary from country to country.

Accountants may be licensed by a variety of organisations, such as the UK's Association of Chartered Certified Accountants (ACCA) and Institute of Chartered Accountants, and are recognized by titles such as Chartered Certified Accountant (ACCA) and Chartered Accountant (UK, New Zealand, Canada, India, Pakistan, South Africa), Certified Public Accountant (US, Singapore, Hong Kong), Certified Management Accountant (Canada), Certified General Accountant (Canada), or Certified Practising Accountant (Australia). Some Commonwealth countries (Australia and Canada) often recognise both the certified and chartered accounting bodies. The majority of "public" accountants in New Zealand and Canada are Chartered Accountants; however, Certified General Accountants are also authorized by legislation to practise public accounting and auditing in all Canadian provinces, except Ontario and Quebec, as of 2005. There is, however, no legal requirement for an accountant to be a paid-up member of one of the many Institutes and other bodies which are effectively a form of professional trade union. Unlike the Law Society, which can legally stop a solicitor from practising, accountancy institutes do not have such authority. However, auditors are regulated.

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Accounting scholarship

Refer Accounting scholarship for professorship.

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The "Big Four" accountancy firms

The "Big Four auditors" are the largest multinational accountancy firms.

PricewaterhouseCoopers

Deloitte Touche Tohmatsu

Ernst & Young

KPMG

These firms are associations of the partnerships in each country rather than having the classical structure of holding company and subsidiaries, but each has an international 'umbrella' organisation for co-ordination. However, due to the dominant size of the United States' economy, the offices of the Big 4 accountancy firms based in the United States have always generated more revenue than the rest of the Big 4 accountancy firms' offices in the world combined.

Before the Enron and other accounting scandals, there were five large firms and were called the Big Five. Since Arthur Andersen's assurance practice split, with a plurality joining KPMG in the US and Deloitte & Touche outside of the US, Arthur Andersen left from the group. Previous to this there were also groupings referred to as the "Big Six" and the "Big Eight".

Enron turned out to be only the first of a series of accounting scandals that enveloped the accounting industry in 2002.

This is likely to have far-reaching consequences for the U.S. accounting industry. Application of International Accounting Standards originating in International Accounting Standards Board headquartered in London and bearing more resemblance to UK than current US practices is often advocated by those who note the relative stability of the U.K. accounting system (which reformed itself after scandals in the late 1980s and early 1990s). Accounting reform of a far more comprehensive sort is advocated by those who see issues with capitalism or economics, and seek ecological or social accountability.

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Size of market - UK

According to Accountancy Age's 2005 league table, fee income amongst the Top 50 accounting firms in the UK rose from £6.3bn to £7.0bn. This followed two successive years in which fee income had declined, largely a result of the sale by some of the larger firms of their consultancy arms. As detailed in the next section, fee income in most business areas - audit, tax, corporate finance and consultancy - rose in the 2005 survey, with insolvency and wealth management being the only segments where revenue fell.

PricewaterhouseCoopers remains the largest firm with fee income totalling £1,780m followed by Deloitte (£1,350m), KPMG (£1,066m) and Ernst & Young (£945m). The combined revenue of the Big Four accounted for £5.0bn, 72% of the fee income of the Top 50, down from 78-79% in the years up to the 2002 survey and the third year in succession a decline in their share has occurred (Chart 1). Ernst & Young's fee income is the smallest of the largest four firms, but still over three times that of the next largest firm, Grant Thornton. The amount of fee income tapers off amongst the mid-tier firms so that in total there were only 25 firms that each generated more than £15m of revenue in the 2005 survey. [1]

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Topics in accounting

See list of accounting topics for complete listing.

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Auditing

Assurance services

Audit

Information technology audit

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Types of accountancy

Cost accounting

Cash-basis and accrual-basis

Financial accountancy

Fund Accounting

Internal and external accountancy

Management accounting

Project accounting

Positive accounting

Environmental accounting

Social responsibility accounting

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Accountancy Principles

Accounting principles, rules of conduct and action are described by various terms such as concepts, conventions, tenets, assumption, axioms, postulates.

hope this helps

Is accounting right for me?

I do in fact believe that it is mostly sitting at a desk all day. I worked in the accounting field for several years and, well, you basically need to be entering information into accounting software programs. You can't really do that while you are walking around (lol). I'm not an accountant though (I worked for several small businesses as 'bookkeeper/accountant'.) Sometimes we needed to turn in the paperwork to an actual CPA ... and he or she was always sitting at a desk.

Accounting *is* repetitive ... yet the way to find interest in it is to realize that many transactions can be recorded in different ways. It's up to *you* to choose the correct way to enter transactions so as to follow GAAP and tax laws. That's the part that kept me interested in it. (I made great money at it as well.)

Make the money ... and then enjoy your life and recreational activities after the work day is done.