Page 39 - Azerbaijan State University of Economics

N.I.Koval: The history of the development of the global accounting system and international
standarts

accounting systems.
The industrial revolution spurred the need for more advanced cost accounting
systems, and the development of corporations created much larger classes of external
capital providers - shareowners and bondholders - who were not part of the firm's
management but had a vital interest in its results. The rising public status of accountants
helped to transform accounting into a profession, first in the United Kingdom and then
in the United States. In 1887, thirty-one accountants joined together to create the
American Association of Public Accountants. The first standardized test for accountants
was given a decade later, and the first CPAs were licensed in 1896.
Historical aspects of development of accounting have been studied extensively
by many academic researches such as Butynets F.F., Dankiv J.Y., Druzhilovska
T.Y., Luchko M. R., Mnyh E.V., Mizikovski Y.A., Ostap'yuk M. J., Paliy V.F.,
Pushkar M.S., Sokolov Y.V., Tkach V. I., Tkach M. V., Shvets V.G., Shturmina O.
S., Ahmad S., Basoglu B., Goma A., Doupnik T., Mueller G.,Perera H., Flasher D.
to name a few. However, development of the international system of accounting has
not been considered in a holistic way that would emphasize various stages of
development and consider distinct factors that influenced accounting at those stages.
Main part. Ancient Egyptian bookkeepers kept meticulous records of the
inventory of goods kept in royal storehouses. The accuracy of these records was
assured by the swift and severe penalty that came if mistakes were ever discovered.
Archeologist Dr. Gunter Dreyer of the German Institute of Archaeology
discovered 5,300-year-old bone labels inscribed with marks and attached to bags of
oil and linen in the Abydos, Egyptian tomb of King Scorpion I.
Describing inventory owners, amounts, and suppliers, these labels of antiquity
are known to be the ancient origin of the counting systems that would eventually
develop into the sophisticated accounting methods we‘re familiar with today.
Other ancient societies also used accounting methods, including scribes in
Mesopotamia who kept records of commerce on clay tablets. In ancient Greece, the
account books of bankers show that they changed and loaned money and helped
people make cash transfers through affiliate banks in other cities. In ancient Rome,
government and banking accounts grew out of records kept by the heads of families.
The most important event in accounting history is generally considered to be
the dissemination of double-entry bookkeeping by Luca Pacioli in 14th century
Italy. Pacioli was much revered in his day, and was a friend and contemporary of
Leonardo da Vinci.
In fact, the Italians of the 14th to 16th centuries are widely acknowledged as
the fathers of modern accounting and were the first to commonly use Arabic, rather
than Roman, numerals for tracking business accounts.

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