| Accountancy is the system of reporting, verifying, and | | | | Muslims interacted with. One of the most detailed |
| recording the value of liabilities, expenses, assets and | | | | examples that Ibn Taymiyyah provided was a |
| income in the books of ledger (account) to which credit | | | | complex governmental accounting systems known as |
| and debit entries are posted chronologically to keep a | | | | the second Caliph of Islam, the Divan of Umar in which |
| record of changes in value. Lenders, investors, | | | | all disbursements and revenues were recorded. |
| managers, decision makers and tax authorities are the | | | | Various Islamic historians have described the Divan of |
| primary people that such financial information will be | | | | Umar in detail and Muslim rulers used this in the Middle |
| used. They use this information to make resource | | | | East, although with enhancements and modifications |
| allocation decisions within and between organisations, | | | | until the Ottoman Empire fell. |
| companies and public agencies. The definition of | | | | Modern Accountancy: The Birth |
| accountancy put forward by the AICPA is " The art | | | | The creator of the "Birth" of Accountancy was a man |
| of summarizing, recording and classifying money, | | | | named Luca Pacioli (he was also known as Friar Luca |
| events and transactions in a significant manner". | | | | Dal Borgo). He went down in history as being credited |
| One branch of Accounting is Financial Accounting. | | | | for the "Birth". His Summa on arithmetic, geometry, |
| Historically Financial Accounting has used processes in | | | | proportions and proportionality, Venice 1494 (a |
| which business information is classified, interpreted, | | | | translation from: Summa de arithmetica, geometrica, |
| recorded, communicated and summarized. This is | | | | proportioni et proportionalita) was a textbook, it was |
| information is usually publically accessible (for public | | | | used in northern Italy in abbaco schools, (Abbaco |
| companies). | | | | schools were where the sons of craftsmen and |
| Accountancy History | | | | merchants were educated). The textbook contained all |
| The infancy of Accountancy dates back to the | | | | the mathematical knowledge of his time, in that text |
| Egyptian Old Kingdom and the Sumerians in | | | | the first ever printed description of the methods used |
| Mesopotamia (The earliest days of human agriculture). | | | | to keep accounts was included, this was known as |
| The New Testament of the Christian Bible mentions | | | | the "double entry" accounting system and at the time |
| simple accounting, it is mentioned in the Parable of the | | | | was used by Venetian Merchants. Pacioli didn’t |
| Talents (Book of Matthew). Also mentioning simple | | | | really invent this system he codified it but to this day |
| accounting for credit and trade arrangements is the | | | | he is regarded widely As the "Father of Accounting". |
| Quran (of Islam). | | | | Most accounting cycles we know and use today |
| Ibn Taymiyyah and Arabic Writer in the twelfth century | | | | were published by Pacioli, he also described ledgers |
| writer of the book Hisba (Literally, "Calculation" or | | | | and journals with his ledger having accounts for |
| "Verification") mentions in detail accounting systems | | | | liabilities, assets, income, capital and expenses. |
| that the Muslims used to use in the mid seventh | | | | The "Big Four auditors", listed alphabetically below, are |
| century A.D. The Persian and the Roman civilisations | | | | the largest multinational accountancy firms. |
| greatly influenced the accounting practices that the | | | | |