1. Group 1
Doan Duy Tien
Cao Thi Ha Duyen
Pham Thi Thuy Nhung
Bui Thi Phuong Loan
Do Nhu Chinh
FINANCIAL
ACCOUNTING

2. What is the
historical
development
of accounting?

3. Outline
• Overview
• The historical development of accounting
• Accounting in Vietnam
• Conclusion

4. I. Overview
• Because natural resources are limited, people
have to know food crops, and raise domesticated
animals to be able to sustain life
• During cropping and livestock, human observed,
recorded the wastage and labor spent to achieve
results, then compare, evaluate what to plant, what
brings most benefit.
The primitive form of Accounting was created

5. What is accounting?What is accounting?
Accounting is an information system
that provides quantitative, financial
information to stakeholders about the
economic activities and condition of a
businessso that they can make
business/economic
decisions.

6. FINANCIAL
ACCOUNTING
II. Historical Development of
Accounting

7. 2.1. Briefly history of Accounting
• Dating back about 10,000 years, the first
accounting system probably consisted of
stones used to represent wealth.
• Accounting began as a simple system of
clay tokens to keep track of goods and
animals, before developing complex
transactions and other financial information.

8. 2.2. Early Accounting
• Accountancy has its roots in the
earliest history of civilization. With
the rise of agriculture and trade,
people needed a way to keep track of
their goods and of transactions

9.  Around 7500 B.C., Mesopotamians
began using clay tokens to represent
goods, such as animals, tools, food items
or units of grain
 Starting around 3000 B.C., the
Chinese developed the abacus, a tool for
counting and calculating.

10. 2.3. Double-entry Bookkeeping and Luca Pacioli
• During and after the Crusades, European
trade markets opened up to Middle Eastern
trade, and European merchants, especially in
Genoa and Venice, became increasingly
wealthy
 They needed a better way to keep track of
large amounts of money and complex
transactions, and this led to the
development of double-entry bookkeeping.

11. Double-entry bookkeeping means that each
transaction is recorded at least twice, as a
debit from one account and a credit to
another
• In 1494, Luca Pacioli published a math book
titled "Summa de arithmetica, geometria,
proportione et proportionalita," which
contained a description of double-entry
accounting gave valuable tool for keeping track of
detailed financial information.
 Luca Pacioli is often called the "Father of
Accounting”

12. 2.4. The Industrial Revolution and the Rise
of Professional Accountancy
• Accounting developed further advent of the
Industrial Revolution in the late 18th
centuries
• Help business owners and managers
understand how best to make their
businesses as cost efficient as possible
• People began to specialize in accountancy
 Thus becoming the first professional
public accountants

13. 2.5. Modern Professional Accounting
• Today, accounting is a business unto itself,
with thousands of practitioners worldwide and
a large number of professional organizations
and official guidelines to codify practices and
requirements
• The Generally Accepted Accounting
Principles, or GAAP, set forth the standards by
which public accountants must do business.
Every country has a similar set of accounting
guidelines.

14. 2.6. Specialized Accounting
• Due to the complex nature of today's economic
system, specialized branches of accounting have
developed.
• In addition to traditional financial accounting,
there are now subdivisions, such as tax
accounting, management accounting, lean
accounting, fund accounting and project
accounting.
• Professional accountants are required for
understanding of business needs and
accountancy practices

15. III. Accounting in Vietnam
Before 1954
• In feudal system: accounting was only simple with record
to perform property.
• When French colonist invaded Vietnam: they built
factories and plantation to use accounting, but it was not
development.
From 1954 to 1975:
• Vietnam was divided two regions.
• In North Vietnam practiced the principle of Soviet Union
accounting.
• In South Vietnam use the principle of United States
accounting.

16.  From 1976 to 1994:
After unification, Vietnam built socialism. The
accounting system used the accounting system
of the Soviet Union. However, accounting only
reflect passive old hard situation to complete by
the government.

17. From 1995 to present:
• Vietnam realizes Doi Moi policy. Accounting has
developed very large.
• Accounting is the management tool, the executive
producer of all business enterprises, accounting
information as a basis for economic decisions.
• The operational accounting, auditing has evolved
into an independent professional society.
• Accounting methods are shifting from manual to
computer accounting.