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Development in Accounting and Corporate reporting - Essay Example

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Development in Accounting and Corporate reporting

This paper examines these developments and other issues that may have impacted in the development of accounting.
It is important to understand the historical background of any subject such as accounting. Understanding accounting background and how it has developed is essential in understanding the past, and leads to a better understanding of the present practices. Understanding the historical background of accounting discipline, trends and practices that could have led to its current status facilitates better understanding of the profession. It is only through evaluation of the historical developments of the subject that people may appreciate accounting as it is today and its significance in the society, in organizations or other areas of application. Moreover, understanding the historical background enhances a better understanding of the objectives of the accounting theory and what the subject intended to achieve. In other words, a problem is better solved by understanding the objectives at the initial stages of a process. Furthermore, understanding the historical background of the subject allows people to delve deep into understanding social, economic and political events and the significance of the subject in shaping these issues. For instance, as the article illustrates, there is a debate on whether accounting was a social construction, based on how accounting influences the society. Considering that there lacks a universal understanding of the accounting theory, the theory may be best understood by investigating the use of data, which people relate to accounting practices. Understanding such practices and how they relate to use of accounting data will lead to credible links on what accounting theory might mean, and how it has evolved over time to what it is today, as well as its impact on the social, economic and political ...Show more
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Therefore, the subject has undergone strategic changes over historical periods to what it is today. Considering that trade between communities dates back to civilization, a form of…
Development in Accounting and Corporate reporting
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