It has been a jam-packed decade of financial events in the United States and around the world, some good, some bad, and all newsworthy. The U.S. Securities and Exchange Commission disagreed with the American Institute of Accountants' Committee on Accounting Procedure (CAP) over whether unusual and extraordinary items were best displayed before net income, in the SEC's view, or after net income, in the CAP's view in its Accounting Research Bulletin 32. There are many types, from accounting for small businesses, government, forensic, and […] What do you think is the most important event in the history of international accounting standards? Accounting has a very long history that dates back hundred years ago when a Franciscan Monk named Luca Pacioli invented double-entry bookkeeping. The history of accounting or accountancy is thousands of years old and can be traced to ancient civilizations. But most historians believe Gutenberg’s adaptation, which employed a screw-type wine press to squeeze down evenly on the inked metal type, was the key to unlocking the modern age. Top Answer Converging local accounting standards and international standards. These five basic principles form the foundation of modern accounting practices. There have been so many important financial events in the 2000s that it is hard to choose the top ten. Image via Flickr by LendingMemo The term accounting is very common, especially during tax season. But before we dive into the importance of accounting in business, let’s cover the basics – what is accounting? Fiscal management, and through that, accounting, has been at the center of human survival since mankind figured out how to trade and barter. All of the financial events have been important to … The accounting standards developed and established by the FAF’s standard-setting boards—the Financial Accounting Standards Board and the Governmental Accounting Standards Board—are the rules that determine how that language is written. The following is a chronology of some of the key events in the evolution of the international convergence of accounting standards. Enron scandal, series of events that resulted in the bankruptcy of the U.S. energy, commodities, and services company Enron Corporation and the dissolution of Arthur Andersen LLP, which had been one of the largest auditing and accounting companies in the world. 1. The Revenue Principle. Those rules are known collectively as U.S. Generally Accepted Accounting Principles—or U.S. GAAP. The world of accounting took great strides with the treatise of bookkeeping, published by Luca Pacioli in 1494 within a book entitled, Summa de Arithmetica, Geometria, Proportioni et Proportionalita. The early development of accounting dates back to ancient Mesopotamia, and is closely related to developments in writing, counting and money and early auditing systems by the ancient Egyptians and Babylonians. More recently, Congress passed the Sarbanes-Oxley Act of 2002 in response to accounting … An important mission of the SEC is to maintain transparency in financial reporting and stock information, requiring accurate accounting from firms on American stock exchanges. Accounting refers to the systematic and detailed recording of financial transactions of a business.