According to American Institute of Accountants (AICPA), accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of financial character and interpreting the results thereof.

It is also the process of identifying, recording and communicating economic events of an organization to interested users (Weygandt, J. et. al).

. This involves selecting economic events that are relevant to a particular business transaction. The economic events at an organization are referred to as transactions. Transactions and events are generally supported by documentary evidences or proofs. Like sales transactions supported by Sales Invoice together with Delivery Receipt.

. It involves the writing of the effects of the transactions and events that have been analyzed using different books of accounts from General Journal, Special Journals and General Ledger.

. . It is the sorting or grouping of similar transactions and events in a specific period of time

. It is the process that involves grouping of various accounts referred to the classifying process where the accounts are grouped into assets, liabilities, owner’s equity, revenue, cost and expenses taken from the general ledger.

. It involves the preparation of the financial statements such as statement of financial position, statement of comprehensive income, statement of owner’s equity and statement of cash flows.

. This is the final function in the accounting process. The data from the financial reports is being used as basis for the future plan and framing of business policies.

. It is involved in providing professional services particularly preparing financial reports about the financial activities of the business entities.

. A process refers to the method of performing any specific job step by step according to the objectives or targets.

. Art refers to the way something is performed. And because it follows certain standards and professional ethics, it is also a discipline.

. This is through the preparation and use of financial statements. You will learn if the company is profitable or not.

. Accounting is recognized and characterized as a store house of information.

• People followed a system of writing and counting money. The development of accounting may be related to the taxation and trading activities of temples.

• The reign of Emperor Augustus (63BC-14AD) provided more evidence about the development of accounting.

• The reign of Emperor Augustus (63BC-14AD) provided more evidence about the development of accounting. • The Roman government kept detailed financial information of the deed of Emperor Augustus regarding the stewardship of Roman resources. • Roman historian Suetonius and Cassius Dio recorded that in 23BC, Augustus prepared rationarium (account) which listed public revenues, the amounts of cash in the aerarium (treasury), in the provincial fisci (tax officials), and in the hands of the publican (public contractors); and that it included the names of the freedmen and slaves from whom a detailed ac-count could be obtained.

• Most important event in accounting history

• Most important event in accounting history • Luca Pacioli is acknowledged as the father of modern accounting because of this. His “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” (Everything about Arithmetic, Geometry and Proportion) is the first book printed with a treatise on bookkeeping.

• The modern profession of the chartered accountant originated in Scotland in the 19th century when Queen Victoria granted a royal charter to the Institute of Accountants in Glasgow.

PAS

—PFRS

—composed of the management group who owns and/or manage and control the business entity.

—composed of the financing group and public group. They do not own/manage and control the business entity. Examples are the investors, employees, lenders, suppliers and other trade creditors, customers, government and its agencies and the public.

(IFRS);

IAS