THE HISTORICAL EVOLUTION OF THE PORTUGUESE MANAGEMENT ACCOUNTING LITERATURE
Abstract This paper analyses the evolution of the Portuguese management accounting literature, throughout the accounting books published in Portugal, in order to identify historical phases of that evolution. The methodology of this study consists in the analysis of some relevant Portuguese accounting books. We study and compare the evolution of the issues like the name of the discipline, terminology, concepts, deepness of treatment of the matters, number of pages of the books, accounting techniques used (e. g. budgeting, standard costs, overhead allocation). This paper proposes five phases: (1) industrial bookkeeping included in commercial bookkeeping books, until early twentieth-century, (2) industrial bookkeeping autonomy, until 1930’s decade, (3) industrial accounting, until mid 1970’s decade, (4) analytical / cost accounting, until mid 1990’s decade, and (5) management accounting, the current phase. This paper aims to contribute to a better understanding of the evolution of the management accounting literature in Portugal, to evaluate the current state of the discipline in this perspective and to facilitate comparative studies with other countries. The structure of the paper is the following: introduction, selection of the books analysed, proposal of the management accounting literature phases, characterization of the phases by issues and conclusions.
This paper analyses the evolution of the Portuguese management accounting literature, throughout the accounting books published in Portugal,1 in order to identify historical phases and periods of that evolution. The methodology of this study consists in the analysis of some relevant Portuguese accounting books. We study and compare the evolution of the issues like the name of the discipline, terminology, concepts and deepness of treatment of the matters, number of the pages of the books, accounting techniques used (e. g. budgeting, standard cost, overhead allocation). The outcome of this paper consists in the development of a table which highlights the phases and periods and also, authors of each period. Five phases are proposed: (1) industrial bookkeeping included in commercial bookkeeping books, until the early twentieth-century, (2) industrial bookkeeping autonomy, until the 1930’s, (3) industrial accounting, until the 1970’s, (4) analytical / cost accounting, until the 1990’s, and (5) management accounting, the current phase. The first and third phases are divided into two periods each. This paper may be helpful to understand better the evolution of management accounting in Portugal and so foresee its future. This paper is a subsequent research from Carvalho and Conde (2002)2, where the Portuguese context from the eighteenth century to the present and a proposal of accounting phases and periods were presented. For this reason in the next point is only presented a brief description of the political and economical context. It is also presented an improved proposal of phases and periods to the Portuguese accounting which is helpful for the present paper. Although, we have not done a review of articles published in Portuguese journals, we are of the opinion that the conclusions are relevant, because the authors who wrote articles in journals generally also wrote books, thus revealing their opinions. However, the analysis of journal articles, particularly those articles of the most...
...Paper - I
1. Sources: Archaeological sources:Exploration, excavation, epigraphy, numismatics, monuments Literary sources: Indigenous: Primary and secondary; poetry, scientific literature, literature, literature in regional languages, religious literature. Foreign accounts: Greek, Chinese and Arab writers.
2. Pre-history and Proto-history: Geographical factors; hunting and gathering (paleolithic and mesolithic); Beginning of agriculture (neolithic and chalcolithic).
3. Indus Valley Civilization: Origin, date, extent, characteristics, decline, survival and significance, art and architecture.
4. Megalithic Cultures: Distribution of pastoral and farming cultures outside the Indus, Development of community life, Settlements, Development of agriculture, Crafts, Pottery, and Iron industry.
5. Aryans and Vedic Period: Expansions of Aryans in India. Vedic Period: Religious and philosophic literature; Transformation from Rig Vedic period to the later Vedic period; Political, social and economical life; Significance of the Vedic Age; Evolution of Monarchy and Varna system.
6. Period of Mahajanapadas: Formation of States (Mahajanapada): Republics and monarchies; Rise of urban centres; Trade routes; Economic growth; Introduction of coinage; Spread of Jainism and Buddhism; Rise of Magadha and Nandas. Iranian and Macedonian invasions and their impact.
7. Mauryan Empire: Foundation of the Mauryan Empire, Chandragupta, Kautilya and Arthashastra; Ashoka;...
...ACCG326 International Financial Accounting
Session 2, 2012
Week 13 Lecture
• Gain an understanding of differences in accounting methods and disclosure practices and how accounting and corporate disclosure is regulated in a range of different nations, and the role that the accounting profession, government and other bodies have in that regulation. • Gain an understanding of the cultural, economic, political and historical factors that help explain differences and similarities in patterns of accounting and regulation across nations, and how these factors may influence the move towards international harmonization.
• Gain an appreciation of the issues and problems facing international companies in organizing, managing, planning, controlling and evaluating, their global operations. • Develop and strengthen generic skills in the areas of report writing and topic discussion. • Demonstrate awareness of social, ethical and corporate governance issues affecting accounting and the role of accountants internationally. • Learn independently and assume responsibility for the learning process and with academic integrity and learn with peers to co-operate with others and assume leadership.
WEEK 1 Introduction to InternationalAccounting and Reporting
...The formation of the debit and credit concept
In this simplified form we can begin to see what the mathematician and Father of Accounting (Luca Pacioli) saw in 1494 when he codified the double-entry bookkeeping system. It is his codified system that outlined the rules for applying debits and credits when recording the financial transactions of a business in the double-entry bookkeeping system.
Now remember that Luca’s book in 1494 was written and published in Latin and at a time when the concept of negative numbers was not yet accepted in Europe. So he spoke of the terms ‘Debere’ and ‘Credere’ which means
To maintain this fundamental truth that the value of the net assets of the business must be equal to the value of the owners equity, Luca introduced the concept that the net assets side of the equation would be represented as Debere (Debits = funds owed to the owners) and the owners equity side would be represented as Credere (Credits = funds entrusted).
Consequently, he could also see that financial activities that caused net assets to increase should be debited (more funds owed to the owners) and credited if decreased (less funds owed to the owners). The same principle applies to the owners equity side. An increase in owners equity would be credited (more funds entrusted in the business) and a decrease debited (less funds entrusted in the business).
Treatment of expenses and revenues
Finally, the treatment of expenses and revenues in the double-entry...
...The InternationalAccounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are undertaking the Conceptual Framework project jointly in order to create a sound foundation for the new accounting standard by revising the existing conceptual framework. The InternationalAccounting Standards Board (IASB) is the dependent standard-setting body of the IFRS foundation. The IASB adopted the FASB in its framework as guidelines for the preparation IFRS that it published in 1989. The objective of the framework is to build up new international standards by updating and refining the existing concepts, whereby assist national standard-setting bodies in developing standards consistent with international standards. However the application of Unite State GAAP (general accepted accounting principles) had no formal accounting practice requirements of Companies Acts or Codes, although it is commonly required by the Security Exchange Commission (SEC) to register with GAAP. In this sense, an agreed International Conceptual Framework is seems to be necessary to undertake as the US GAAP under the FASB does not have an appropriate accounting standards for non-US company which they need to joint with IASB to produce a consistent standards, so that there is a standard format for the entity to prepare their...
Marion Clarisse Bonoan
According to the dictionary the word accounting means, the process or work of keeping financial accounts. However, how did accounting started? Was it just by a simple merchant or entrepreneur who needed a good and stable way to keep track of all his earnings? Or was it by an old mathematician studying ways to calculate how a business would be successful and just so happen to come across such a process? The history of accounting may not have the same ring to it as the History of World War II, but it does have interesting parts to it that makes people go “Oh so that’s why we add those two together to get that” or “Oh so Luca Pacioli started all this”. Accounting makes up 36.1 % of Canada’s main employment, based on statistics. It has opened a lot of opportunities for people to work and to make a life for themselves.
The first name that comes to mind with the History of accounting is Luca Pacioli. Luca Pacioli is considered to be the “Father of Accounting”. Luca Pacioli was born in the Renaissance period. Born poor he didn’t have much future for himself at the time. Luca Pacioli despite his status had always been in love with math. He was an apprentice to a local business man when he joined the Franciscan Monastery in Sansepulcro, but...
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...Introduction to AccountingAccounting is a profession used to make financial and business decisions. Billions of dollars exchange hands every day, in millions of separate business transactions. These are recorded and reported on using a comprehensive set of guidelines, referred to as Generally Accepted Accounting Principles (GAAP).
Brief History of AccountingAccounting was born before writing or numbers existed, some 10,000 years ago, in the area known as Mesopotamia, later Persia, and today the countries of Iran and Iraq. This area contains the Tigris Euphrates river valley, a large fertile area 10,000 years ago with a large thriving population and active trading between towns and cities up and down the two rivers.
Writing and numbers would be not be invented for about another 5,000 years. And what happens next will directly lead to the invention of both writing and number systems.
At that time, merchants faced many of the same problems businesses face today. They had to ship their merchandise up and down the rivers, and that meant trusting a boatman with their goods. Unfortunately, not all boatmen were honest, and disagreements often arose about how much was shipped versus what was received at the other end.
It is hard for us today to imagine a world without writing and numbers. Try to imagine yourself in their position.... what would you do?
To deal with the problem, merchants came up...
"Your course unfortunately doesn't give me the answer to a great many real-life problems," said Marsh Grube to an accounting professor. "I've read the text and listened to you attentively, but every once in a while I run across something that doesn't seem to fit the rules."
"Not all of life's complications can be covered in a first course," the professor replied. "As is the case with law, medicine, or indeed any of the professions, many matters are dealt with in advanced courses, and others are not settled in any classroom. Nevertheless, some problems that are not specifically discussed can be solved satisfactorily by relating them to principles that you already have learned. Let's take revenue recognition as a particularly difficult case in point. If you will write down some of the matters about which you are now uncomfortable, I'd be glad to discuss them with you-that is, after you have given some thought as to the most reasonable solution."
A week later, Grube returned with the list given below:
1. Electric utility bills. When an electric utility customer uses electricity, the electric company has earned revenues. It is obviously impossible, however, for the company to read all of its customers' meters on the evening of December 31. How does the electric company know its revenue for a given year? Explain.
2. Retainer fee. A law firm received a "retainer" of $10,000 on July 1, 2010, from a client. In return, it...