THE EVOLUTION AND IMPORTANCE OF INTERNATIONAL FINANCIAL REPORTING STANDARDS: FROM ANCIENT CIVILIZATIONS TO MODERN ACCOUNTABILITY - PART ONE (1)
INTRODUCTION Accountants, whether in business or practice, follow a set of accounting rules and guidelines (principles) to ensure they are consistent, transparent, and easily comparable worldwide. The foundation of these principles is deeply rooted in history. HISTORY OF ACCOUNTING Financial Accounting Reporting transitioned from the Ancient Civilization days of Mesopotamia more than 7,000 years ago. The Mesopotamians kept records of goods traded and received, the record-keeping of ancient Egyptians and Babylonians. They used primitive accounting methods to keep detailed records of transactions involving animals, livestock, and crops. Bookkeepers emerged when the barter system was practiced by societies, who needed to record the agreement made regarding goods and services transacted before 2000 B.C. Ledgers emerged from the practice, and accountancy can be traced back to the 13 th century. New and improved ledgers became available, and tradesmen and merchants began to build ma...