| Accountancy (profession) or accounting | | | | also known as Friar Luca dal Borgo, published |
| (methodology) is the measurement, disclosure | | | | at Venice his treatise on bookkeeping. |
| or provision of assurance about information | | | | |
| that helps managers and other decision makers | | | | The first known English book on the science |
| make resource allocation decisions. Financial | | | | was published in London by John Gouge or |
| accounting is one branch of accounting and | | | | Gough in 1543. It is described as A |
| historically has involved processes by which | | | | Profitable Treatyce called the Instrument or |
| financial information about a business is | | | | Boke to learn to knowe the good order of the |
| recorded, classified, summarized, | | | | kepyng of the famouse reconynge, called in |
| interpreted, and communicated. Auditing, a | | | | Latin, Dare and Habere, and, in English, |
| related but separate discipline, is the | | | | Debitor and Creditor. |
| process whereby an independent auditor | | | | |
| examines an organization's financial | | | | A short book of instructions was also |
| statements and accounting records in order to | | | | published in 1588 by John Mellis of |
| express an opinion—that conveys | | | | Southwark, in which he says, "I am but the |
| reasonable but not absolute | | | | renuer and reviver of an ancient old copie |
| assurance—as to the truth and fairness | | | | printed here in London the 14 of August 1543: |
| of the statements and the accountant's | | | | collected, published, made, and set forth by |
| adherence to Generally Accepted Accounting | | | | one Hugh Oldcastle, Scholemaster, who, as |
| Principles (GAAP), in all material respects. | | | | appeareth by his treatise, then taught |
| At the heart of accounting is the measurement | | | | Arithmetics, and this booke in Saint Ollaves |
| of financial transactions which are transfers | | | | parish in Marko Lane." John Mellis refers to |
| of legal property rights made under | | | | the fact that the principle of accounts he |
| contractual relationships. Non-financial | | | | explains (which is a simple system of double |
| transactions are specifically excluded due to | | | | entry) is "after the forme of Venice". |
| conservatism and materiality principles. | | | | |
| | | | The very interesting and able book described |
| Practitioners of accountancy are known as | | | | as The Merchants Mirrour, or directions for |
| accountants. There are many professional | | | | the perfect ordering and keeping of his |
| bodies for accountants throughout the world. | | | | accounts formed by way of Debitor and |
| Many allow their members to use titles | | | | Creditor, after the (so termed) Italian |
| indicating their membership. Examples are | | | | manner, by Richard Dafforne, accountant, |
| Chartered Certified Accountant (ACCA), | | | | published in 1635, contains many references |
| Chartered Accountant (CA or ACA) and | | | | to early books on the science of accountancy. |
| Certified Public Accountant (CPA). | | | | In a chapter in this book, headed "Opinion of |
| | | | Book-keeping's Antiquity," the author states, |
| Accountancy attempts to create accurate | | | | on the authority of another writer, that the |
| financial reports that are useful to | | | | form of book-keeping referred to had then |
| managers, regulators, and other stakeholders | | | | been in use in Italy about two hundred years, |
| such as shareholders, creditors, or owners. | | | | "but that the same, or one in many parts very |
| The day-to-day record-keeping involved in | | | | like this, was used in the time of Julius |
| this process is known as bookkeeping. | | | | Caesar, and in Rome long before." He gives |
| | | | quotations of Latin book-keeping terms in use |
| At the heart of modern financial accounting | | | | in ancient times, and refers to "ex Oratione |
| is the double-entry bookkeeping system. This | | | | Ciceronis pro Roscio Comaedo"; and he adds: |
| system involves making at least two entries | | | | "That the one side of their booke was used |
| for every transaction: a debit in one | | | | for Debitor, the other for Creditor, is |
| account, and a corresponding credit in | | | | manifest in a certain place, Naturalis |
| another account. The sum of all debits should | | | | Historiae Plinii, lib. 2, cap. |
| always equal the sum of all credits. This | | | | |
| provides an easy way to check for errors. | | | | 7, where hee, speaking of Fortune, saith |
| This system was first used in medieval | | | | thus: Huic Omnia Expensa. |
| Europe, although claims have been made that | | | | |
| the system dates back to Ancient Greece. | | | | Huic Omnia Feruntur accepta et in tota |
| | | | Ratione mortalium sola Utramque Paginam |
| According to critics of standard accounting | | | | facit." An early Dutch writer appears to have |
| practices, it has changed little since. | | | | suggested that double-entry book-keeping was |
| Accounting reform measures of some kind have | | | | even in existence among the Greeks, pointing |
| been taken in each generation to attempt to | | | | to scientific accountancy having been |
| keep bookkeeping relevant to capital assets | | | | invented in remote times. |
| or production capacity. However, these have | | | | |
| not changed the basic principles, which are | | | | There were several editions of Richard |
| supposed to be independent of economics as | | | | Dafforne's book printed---the second edition |
| such. | | | | having been published in 1636, the third in |
| | | | 1656, and another was issued in 1684. The |
| History Accountancy's infancy dates back to | | | | book is a very complete treatise on |
| the earliest days of human agriculture and | | | | scientific accountancy, beautifully prepared |
| civilization (the Sumerians in Mesopotamia), | | | | and containing elaborate explanations. The |
| when the need to maintain accurate records of | | | | numerous editions tend to prove that the |
| the quantities and relative values of | | | | science was highly appreciated in the 17th |
| agricultural products first arose. | | | | century. From this time on, there has been a |
| | | | continuous supply of literature on the |
| The art of accountancy based upon a logical | | | | subject, many of the authors styling |
| mathematic system (double-entry book-keeping) | | | | themselves accountants and teachers of the |
| must certainly have been understood in Italy | | | | art, and thus proving that the professional |
| before 1495, when Luca Pacioli (1445 - 1517), | | | | accountant was then known and employed. |