The Importance Of Accounting History And The Relevance Of History In The Accounting Profession

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The study of history is defined as the narration, documentation and analysis of events that occur in the past, and for many years history has influenced several structural models and customs within the present-day society. Accounting history is, the narration and interpretation of historical events that have impacted the accounting profession. This essay seeks to investigate the impact of history on accounting and the relevance of accounting history, to addresses and answer the question of the importance of history in the accounting profession. T. A. Lee’s (1990) article, ‘A Systematic View of the History of the World of Accounting’ provides comprehensive evidence that is consistent with the premise that accounting has been significantly influenced by changes in history. The four coinciding stages of accounting history will be briefly dealt with to observe such premise. Earliest times (8000BC-1000AD), …show more content…

This is “What 'was' (the historical state) to what 'is' (the positive state) to what 'ought to be' (the normative state)” (Previts, 1984:3). The idea is that through examination and interpretation of the history, researchers will receive a clear understanding of how the ‘present’ was developed and through historical analysis the future can be forecasted because as Demski notes: “Whenever we encounter a problem it goes without saying that the problem has a past and, presumably, a future” (Demski, 1985:72). C.W. Haskins further corroborates by stating that accounting history allows one to “better…understand our present and forecast or control our future” (Haskins, 1904:141). Historians Previts, Parker and Coffman’s (1990:3-8) article ‘’Accounting History: Definition and Relevance’ also analyses the relevance of accounting history by debating advantages that fall into 3 categories that will be discussed below with the consideration of the was-is-ought

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