PASCAL Platinum 7th Edition

The Ηistory of ΑccountingAccounting is very important in our lives. Many things are depending onaccounting. Most of the formal modern day accounting started at the endof the Crusades.The double entry system was first used in Genoa, Italy around the 13 thcentury and then it was published in Venice. Luca Pacioli wrote about the“Method of Venice” in his book in 1494 the summa and this made him tobe called the “Father of accounting” and he published the method ofVenice. This method was used for three books recording transactions, amemorandum book, a journal and a ledger. Entries where posted from thememorandum book to the journal with debits on the left and credits to theright. A trail balance was required at the end of a financial period. Moreover, accounting hasn’t changedsince Pacioli wrote the first textbook in 1494. Furthermore, the history of accounting it is important foreconomic and cultural development. It took archeologists to dig up the early history and scholars frommany fields to demonstrate the importance of accounting to so many aspects of economies and culture.Accounting history is summarized in seven chapters.Fra Luca PacioliFra Luca Pacioli was born during 1445 in Sansepolcro, Tuscany. He was a mathematician and friend ofLeonardo da Vinci. He wrote in many fields including mathematics, theology, architecture, games, militarystrategy and commerce. In 1494 Pacioli published his famous book “Summa de Arithmetica, Geometria,Proportioni et Proportionalita”. One section of this book was dedicated to the description of double entryaccounting. The Summa was one of the first books published on the Gutenberg press, became a successand was translated into German, Russian, Dutch, and English. The Summa made him very important in thehistory he was like “The Father of Accounting”Polyxeni Menelaou, 4BEconomics & AccountingGlobalisationGlobalisation from an economic prospective can be defined as the ever increasing integration of theworld’s local, regional and national economies into a single international market. There are several effect,benefits and causes of globalisation.First of all a cause of globalisation is trade in goods. For rich developed countries, goods are increasinglybeing manufactured abroad, many for the first time in developing countries such as China and India. Thiswill lead to a decrease in cost of production as in China and India the labour payment is extremely cheaperthan the country of the producer. However through Globalisation there are winners and losers. If amultination company such as Panasonic moves its factory from UK to China in order to decrease cost ofproduction the losers will be the unemployment as this will increase structural unemployment as so badconsequences for the government as it must pay unemployment benefits. On the other hand the winnerwill be Panasonic as it will achieve to minimise even more its cost of production while on the same lineachieving competiveness and increasing market share.Another benefit of Globalisation is that Globalisation enables greater trade and competition betweendifferent economies, leading to lower prices, greater efficiency and higher economic growth and it has alsoenabled increased levels of investment. It has made it easier for people to attract short term and longterm investment (investment by multinational companies can play a big role in improving the economies ofdeveloping countries).Georgios Konstantinou 6APASCAL Platinum 7th Edition 30