After studying this chapter , you will be able to :

2.Dicscuss the major contribution to accounting

knowledge by Islamic nation.
1.Describe the major contribution to accounting
knowledge by the European countries.
2.Dicscuss the development of accounting theory and
practices in the USA.
3.Relate developments in accounting to developments in
society.
4.Desecribe the growth of accounting knowledge during
the past 200 years.
Chapter 3:
History of Accounting Thought
Early history of accounting
Accounting appears to have been practiced since
the beginning of recorded history . Business
transaction and land sales were recorded by about
3000 B.C.
There is evidence in many early civilisations:
Babylonian
Assyrian
Sumerian
Egyptian
Chinese
Greek
Roman
Early history of accounting
Loca Paciolio is consider the father of
modern accounting .

The double entry system laid down by Loca
Paciolio was applied earlier in Europe.(15th
century)
Early history of accounting

Discuss the major contribution to
accounting knowledge by Islamic nation.
The Age of Stagnation
The period between (1494 and 1775) is regarded
as the age of stagnation of accounting. The world
changed very littlie during this period of about 300
years.
We know that accounting is a function of
economic (and social) development .
There was practically no economic development .
Naturally , there was no progress in accounting
practices and ideas.
The Age of Stagnation
The owner of business was expected to keep
accounts for his own use.
Therefore, no preparation of financial statements
and auditing .
in this stage , the concepts of capital as the
difference between assets the liabilities , net profit
as the change in capital between two dates (after
adjusting for capital contribution and withdrawals)
was well established during the age of stagnation.