1. INTRODUCTION

Accounting has changed in the same way that humans have evolved and since the notions of accounting originate from the most fundamental concept of conservatism, it’s easy to understand why the way of accounting throughout time is directly linked to the time. As man’s evolution has taken place from primitive times to a time of interdependence life has evolved from being a hunter-gatherer, to a globalized world view of ‘effectiveness becoming great in the course of the evolution of self-accounting through the use of abacuses has evolved through stewardship accounting , financial accounting , and then managerial accounting. It has the focus on making decisions.ZZP Boekhouder Amsterdam

The Financial Accounting Standards Board (FASB) of the US which has generally has standardised and strengthened the globally accepted Generally Accepted Accounting Principles (GAAP) has made major strides in 2012 to merge along with the International Accounting Standards Board (IASB) in a way that is referred to as an “International Convergence”. This convergence is expected to eventually bring about harmonisation between the GAAPs as well as those of the IFRS until they are one in an effort to streamline corporate and company reports into a common procedure globally.

1.1 The Problem

There isn’t a certain answer about what the future is in accounting professionals. Accounting Profession. It is evident that the coming age, that is certain to be one of advancement in science will see man move from being a great man to something that is more valuable in the present. Religion, Environmentalism and Developmentalism could be the key elements in the near future. This paper will discover what Accounting itself could be more of a possibility, providing exact solutions to financial challenges in which man’s capacity to evaluate natural capital in a fair way will result in an important asset in the balance sheet opposition to an industrial age , when even man himself was considered as a worker and was not valued as much as the machines that he used.

2. LITERATURE REVIEW

The paper was conceived by a content analysis of both conceptual and relational. Content analysis is “a method of research that provides an systematic, objective and quantitative analysis of the communication content” (Berelson, 52). (Berelson 52). The concept analysis was merely to look at the existence of the issue, i.e. whether there is a greater or less positive words that are used to describe the particular argument, while the relational analysis was based on the conceptual analysis, by studying the connections between concepts. Like other types of research, the initial decisions regarding the subject being examined determined the possibilities of this particular research.

2.1 Evolution of Accounting Theory

As per investopedia.com, Accounting Theory in the light of its growth can be described as the study of both the historical and theoretical foundations of accounting practices and the manner that accounting practices are analyzed and incorporated into studying and applying financial concepts. Accounting as a subject is believed to be in existence from the 15th century onwards. Since then, economics and business have continued to develop rapidly. Accounting theory needs to be adapted to changing ways of doing business, and new standards for technology and the gaps that are found in the reporting process, and therefore, it is an ever-changing topic. Professional accounting organizations aid companies in understanding and implementing accounting standards, so does the Accounting Standards Board. Accounting Standards Board help continually to develop more effective and ways to apply accounting theories. Accounting is the basis of effective and efficient business management as well as intelligent managerial decision-making without which companies and international trade could operate in a blind and dangerous manner. Therefore, it is essential to connect the way it has developed to its future function.

2.2 1. The Origin of Accounting

Pacioli composed an Maths book published in 1494 (ehow) that contained an entire chapter on the maths of business. Since this book is believed to be the first book published about accounting, Pacioli is been widely regarded as the first accountant’. The author of the Maths book, Pacioli argued that a successful businessperson needed three things: credit or cash, an account system which could show him what he’s doing; and a competent bookkeeper who could operate it. Pacioli’s theories are still valid in the present, and it was based on ledgers and journals, and is believed to have influenced the concept of double entry accounting system that was in use from the beginning of the 1300s.

2.2.1 The First Accounting Change

In the 1772 depression accounting professions shifted beyond bookkeeping and into cost accounting. The idea and the theory changed into a means of to determine if a company is efficient or using too much resources and labour. The theory of cost accounting permitted the bookkeeper who was trained or an accountant to utilize the books that were kept to collect financial reports that show the efficiency of the figures. This revolutionary idea resulted in the survival of businesses in the recession; businesses which would have been doomed without a smart management decision that was informed by an innovation in cost accounting.

2.2.2 3.2.2 American Revolution/ British Courts Influence

The conclusion of American Revolution saw the first United States (US) governmental accounting system being established in 1789. It was designed to manage and manage the Treasury of the US. Double entry practices and the theory was accepted. The British courts determined that they required professional accountants to prepare financial records for court cases. The concept of chartered accounting bodies or concepts were first introduced within Britain (and within the US particularly in the US, specifically in the US, specifically Certified Public Accountant – CPA). It was in 1887 that the very first uniform exam came into existence in the form of Frank Broaker becoming US’s first CPA.

2.3 Modern Cost Accounting

It was initially established by the General Motors (GM) Company in 1923. It came up with methods to reduce costs and streamline operations. This was in use for more than fifty years. The accounting methods that were that were developed included returns on investment, returns on equity, and GM’s adjustable/flexible budgeting concept.

2.4 The Accounting Concepts as well as conventions

It was created in the US between 1936 between 1936 and 1937 by the Committee on Accounting Procedure (CAP) thus establishing a standardization of accounting practices across all companies in the US. In 1953 it was the year that Generally Accepted Accounting Principles (GAAP) was updated to the latest standards. CAP was changed to Accounting Principles Board (APB) in 1959. Then, after 1973 APB (having been afflicted by poor leadership) was replaced by the Financial Accounting Standards Board (FASB) with more power and a professional position.

2.5 International Financial Reporting Standards

FASB issued more than 200 decisions in the period 1973-2009, thereby creating the basis of Accounting Standards in use presently and is currently making steps to harmonize the accounting principles of GAAP in accordance with that of International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB). It is generally believed that the growth of the accounting professionals in any nation and all over the world is the result of a collaborative effort by accountants as well as accounting theoreticians. accountants. Therefore, the structure that is accounting is synthesis of initiatives where professional accounting organizations are typically at the forefront of a process of regulation and standardisation of matters pertaining to accounting.

2.6 3. Nigerian Scenario

In Nigeria the situation is not different from that which has been previously debated. The majority of Nigeria’s Accounting standards (concepts as well as conventions) were handed down by those of the British colonial rulers. In addition, since the world is an enormous global village, with global accounting bodies overseeing and ensuring that all countries in the world remain current with the generally accepted accounting principles, Nigeria has also tagged in making a number of private and public sector reforms. Some of the most recent and well-known of which is the decision from the Federal Government in July 2010 to adopt the International Public Sector Accounting Standards (IPSAS) for the public sector, and the International Financial Reporting Standards (IFRS) for the private sector in an effort to create an uniform reporting system in the entire country, by each sector, both public as well as private sector.

2.7 International Convergence of Accounting Standards

This is both a concept and an approach to achieve this objective. It was the FASB considered that its ultimate objective of convergence was a common set of international, high-quality accounting standards that companies all over the world would utilize for international and domestic financial reporting. To achieve this intentional efforts are put forth by the FASB as well as the IASB to work together to eliminate distinctions between GAAP and the “IFRS”. One of these conscious efforts was undertaken on 5th April 2012, as an upgrade report was sent at the Financial Stability Board Plenary on Accounting Convergence. The increasing demand from global capital markets fueled by the desire of investors to have high-quality, internationally comparable financial data is an outcome of the fact that it will aid in decision-making and then provide precise solutions to problems. The IASB was established on the 1st of April 2001, as the successor to International Accounting Standards Committee (IASC) and on the 1st of March 2001, the IASB was established, which is an independent accountant standard-setting organization located within London, England assumed the charge of Accounting Standardisation. IASB is an independent accounting standard-setter based in London, England. IASB has the responsibility of the issuance of various Accounting standards as well as pronouncements, referred to by the International Financial Reporting Standards (IFRS).