Measurement, processing and interaction of financial details about economic entities Accounting or accountancy is the measurement, processing, and interaction of financial and non monetary details about economic entities such as businesses and corporations. Accounting, which has been called the "language of company", measures the outcomes of a company's financial activities and conveys this information to a variety of users, consisting of investors, lenders, management, and regulators.
The terms "accounting" and "monetary reporting" are typically used as synonyms. Accounting can be divided into several fields consisting of monetary accounting, management accounting, external auditing, tax accounting and expense accounting. Accounting details systems are created to support accounting functions and associated activities. I Found This Interesting focuses on the reporting of an organization's monetary info, including the preparation of monetary statements, to the external users of the info, such as investors, regulators and providers; and management accounting concentrates on the measurement, analysis and reporting of details for internal usage by management.
Accounting has existed in different forms and levels of sophistication throughout human history. The double-entry accounting system in use today was developed in middle ages Europe, especially in Venice, and is generally credited to the Italian mathematician and Franciscan friar Luca Pacioli. Today, accounting is assisted in by accounting companies such as standard-setters, accounting firms and professional bodies.
GAAP is set by different standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States and the Financial Reporting Council in the UK. Since 2012, "all significant economies" have strategies to assemble towards or adopt the International Financial Reporting Standards (IFRS). History [modify] Accounting is thousands of years of ages and can be traced to ancient civilizations.
By the time of Emperor Augustus, the Roman government had access to comprehensive financial details. Double-entry bookkeeping was pioneered in the Jewish neighborhood of the early-medieval Middle East and was more fine-tuned in middle ages Europe. With the advancement of joint-stock companies, accounting split into monetary accounting and management accounting. The very first published work on a double-entry bookkeeping system was the, released in Italy in 1494 by Luca Pacioli (the "Dad of Accounting").
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