The American Accounting Association defined accounting since: ”the procedure for identifying, computing and conversing economic information to permit knowledgeable judgments and decisions by the users from the information” (Aryasri, 2008).
The history of accounting implies that accounting process has evolved throughout the history. Although, id, measurement and communication continue to remain because core activities of accounting process, the methods of doing these people have substantially changed. That which was once considered being acceptable during the past may not be ideal for today as its environment has changed. However , the need for alterations usually originates from the environment instead of accounting profession itself. Record has shown that unless there is a severe demand for changing, the natural propensity of accounting profession is always to follow the meeting. This has been confirmed by the period of stagnation. During this period, inspite of the invention of double entry accounting procedure and its advantages, businesses were redundant to look at. However , if the industrial trend took place, there was clearly a great increase in the number of firm which required further developments in accounting process. Many organisations which are struggling to adopt the accounting changes have failed badly. Nevertheless, through these kinds of failures, the down sides in accounting process have already been recognized and addressed immediately. For example , the situation of certainly not distinguishing among capital and revenue as well as the allocation of asset devaluation to expenses were recognized by the collapses of many railway companies. Accountancy firm were in that case required to separate capital and revenue products, measure the value of set assets, and determine devaluation rates (Hooper, Davey, Liyanarachchi & Prescott, 2008)..
In the same sense, in today's ever changing organization environment, accounting process is going to face significant amounts of challenges and demands, it truly is certain that accounting process will certainly continue to...
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