Introduction to the Accounting Environment

Get Started. It's Free
or sign up with your email address
Introduction to the Accounting Environment by Mind Map: Introduction to the Accounting Environment

1. Def : the art of recording, classifying and summarizing in a significant manner and in terms of money.


2.1. The importance of Accounting History

2.1.1. practice

2.1.2. policy

2.1.3. pedagogy

2.2. Relevance of Acc History

2.2.1. clues & explanation of double-entry bookkeeping processes

2.2.2. allows us to relate with the past

2.2.3. help to link between historical state and both normative and positive.

2.3. limitation of Acc History

2.3.1. incomplete

2.3.2. not reveal the cause of an event

2.3.3. attempt to proceed from determination *what happened *how it happen

2.4. Financial reporting environment

2.4.1. * Regulator/legislative bodies and Enforcement Authorities *Corporation/Preparers of Financial Statements *Users/Capital markets

2.5. Accounting Development in Malaysia

2.5.1. Management Contribution Phase

2.5.2. Institution Contribution Phase

2.5.3. Professional Contribution Phase

2.5.4. Overt politicization Phase

3. Roles of Accounting

3.1. Accounting as :

3.1.1. communication

3.1.2. Standard settings as politics

3.1.3. historical record

3.1.4. language

3.1.5. Intra-corporate politics

3.1.6. Mythology

3.1.7. Magic

3.1.8. Communication- Decision information

3.1.9. an economic good

3.1.10. Social Commodity

3.1.11. Ideology and Exploitation

4. Accounting Theory

4.1. Development in accounting Theory: BEFORE 1400s - Practice development 1450 to 1750 - Pre-theory Period 1750 to 1920s -Formalisation of theory 1800s to 1955- General Specific period 1956 to 1970s- Normative Period 2000s to the present -Mixed development

4.2. Hendriksen's def: THEORY * the coherent set of the hypothetical, conceptual and pragmatic principles forming the general framework of reference foe a field of inquiry ACC Theory : logical reasoning in the form of a set of abroad principles that: * provide general framework of reference based on accounting practice *guide the development of new practices and procedures

5. evolution of double-entry :

5.1. double-entry accounting

5.1.1. Classification

5.1.2. Casual

5.2. documenting process but not explaining basis for recording