Lesson 2: History of accounting
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Signor Luca Pacioli (Parr-Cho-Lee), lived from 1446-1517 in Venice, in what is today known as Italy. He is often referred to as The Father (or Patron) of Accounting and Bookkeeping. Not because he invented accounting, which he didn't, but because he wrote the first detailed and complete 'book' on the practice. And, even though it was all in black and white, when published this book allowed the practice to be taught to students in a pure form - a form that is still being taught today - to you! |
In the following short video, Peter Frampton explains the genesis of accounting.
[Duration 1:05]
[Duration 1:05]
In this lesson, we have also sourced some third-party videos on YouTube. The first is a general overview by Dave Alldredge of viralatom.com. This is easily digested, includes a nice link to modern accounting and goes for 4:15 minutes. Just be aware, Dave pronounces Pacioli's name as "Pats-Ee-Owe-Lee". The Italian pronunciation is "Parr-Cho-Lee", with the "r" rolled of course!
If you prefer a more considered and well-researched overview, then in the last two videos, Jane Gleeson-White, the author of "Double Entry: How the merchants of Venice shaped the modern world - and how their invention could make or break the planet" discusses the origins of accounting and its impact on the world. The first video goes for 5:39 minutes and, for a more detailed overview, the second "Monks, Maths & Magic" goes for 19:31 minutes (and contains the dubious joke: "Why did the accountant cross the road?". "To bore people on the other side!").
If you prefer a more considered and well-researched overview, then in the last two videos, Jane Gleeson-White, the author of "Double Entry: How the merchants of Venice shaped the modern world - and how their invention could make or break the planet" discusses the origins of accounting and its impact on the world. The first video goes for 5:39 minutes and, for a more detailed overview, the second "Monks, Maths & Magic" goes for 19:31 minutes (and contains the dubious joke: "Why did the accountant cross the road?". "To bore people on the other side!").
Sheldon of the Big Bang Theory helps explain why accountants are to be revered. A tongue-in-cheek view - [1:52]
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Perpective is just like buying a pineapple...
If a customer walks into a fruit shop with the intention of getting a pineapple: they are thinking "I'd like to BUY a pineapple". The fruit shop has the intention of providing a pineapple to whoever wants one: they are thinking "I'd like to SELL a pineapple" So, is it BUY or SELL? The same transaction, uses two different words to describe the exact same event. The correct word to use depends on whose perspective we are looking from at the time. In accounting, people are often talking from the wrong perspective, and end up using the wrong words. This can lead to great confusions, badly worded legal documents and even court battles! |
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Extenders
- When do YOU think accounting really began, and why was it needed?
- What type of accounting existed before 'double-entry accounting' was created?
- What part did the use of Arabic numerals play in the development of accounting as a practice?
- If accounting is so important, then why do so few people understand it?
- Why do you think Signor Pacioli is wishing he had a colour printer?