UNIVERSITY OF NIGERIA NSUKKA

FACULTY OF BUSINESS ADMINISTRATION

DEPARTMENT OF ACCOUNTANCY

TOPIC:
THE REGISTER OF ACCOUNTANCY
A TERM PAPER
SUBMITTED IN PARTIAL FULFILLMENT OF THE COURSE GSP 101
( USE OF ENGLISH ).

BY

OZOBULU IFUNANYACHUKU PASCALINE

2023/256101

PROF NANCY,ACHEBE
JUNE 2023
 Title page
THE REGISTER OF ACCOUNTANCY
 Dedication
To my Family and friends for their support
 Preface

The field of accountancy is a cornerstone of modern business operations,

essential for both the management and regulatory oversight of financial activities.
This term paper aims to provide a comprehensive overview of the fundamental
principles, practices, and significance of accountancy in today’s economic
environment.

The purpose of this term paper is to elucidate the theoretical frameworks and
practical applications that underpin accountancy. It explores the historical
development of accounting practices, the ethical considerations inherent in the
profession
 Acknowledgement

My Acknowledgement goes to all Authors and organizations whose publications

have been helpful to me in the cause of this research.
 Table of Contents

Title page ________________________________________________________________________

Dedication _______________________________________________________________________

Preface _______________________________________________________________________

Acknowledgement
_______________________________________________________________________

Table of Contents
_______________________________________________________________________

Chapter 1

Introduction _______________________________________________________________________

1.1 Definition and scope

_____________________________________________________________________

1.2 History of Accountancy

___________________________________________________________________

1.3 Importance of
Accountanc________________________________________________________________

Chapter 2

2.1 Accounting Terminology and Concepts__________________________________________________

2.2 Basic Accounting Terms _____________________________________________________________

2.3 Fundamental Accounting Concepts ___________________________________________

Chapter 3

3.1 Specialized Areas in Accountancy ___________________________________________________

3.2 Professional Ethics and Standards

_______________________________________________________

Conclusion
Reference

Chapter 1

Introduction

1.1 Definition and scope

Accountancy, often referred to as accounting, is the process of recording, classifying, summarizing, and
interpreting financial transactions and events. It involves the systematic and comprehensive recording of
financial information and its presentation in a structured manner to provide insights into a business’s
financial performance and position. The primary objective of accountancy is to provide stakeholders,
such as investors, management, regulators, and creditors, with relevant financial information to make
informed decisions.

Scope of Accountancy in the Business World

The scope of accountancy extends across various domains and functions within the business
environment, playing a crucial role in the overall management and operation of an organization.

In summary, accountancy is a multifaceted field that is integral to the functioning of businesses and
organizations. Its scope encompasses a wide range of activities and specializations, all aimed at
providing accurate and meaningful financial information to stakeholders for better decision-making and
strategic planning.

1.2 History of Accountancy

Ancient Beginnings

The origins of accountancy can be traced back to ancient civilizations. The earliest records of accounting
date back to Mesopotamia around 5000 BCE, where clay tablets were used to document trade and
agricultural activities. The Babylonians and Egyptians developed more sophisticated bookkeeping
systems, recording economic activities on papyrus and clay.

In ancient Greece, accountancy began to take a more structured form. The Greeks introduced the
concept of auditing, with records kept by public officials being subject to scrutiny. This laid the
groundwork for accountability in public finances(Edwards,1989) .

The Roman Empire

The Roman Empire further advanced accounting practices. The Romans used a detailed and organized
approach to financial management, keeping comprehensive records of taxes, public expenditures, and
military finances. The "codex accepti et expensi," a kind of cash book, was used to track daily
transactions, reflecting the Empire's administrative sophistication ( Hopwood 1987)

Medieval Developments

The Middle Ages saw the emergence of more complex financial systems. The growth of trade and
commerce in medieval Europe necessitated improved accounting methods

The Industrial Revolution in the 18th and 19th centuries marked a turning point in the history of
accountancy. The rapid growth of businesses and the complexity of financial transactions required more
advanced accounting techniques. The need for accurate financial information led to the
professionalization of accounting. In 1880, the Institute of Chartered Accountants in England and Wales
(ICAEW) was established, setting standards for the profession.

Conclusion

In conclusion, the introduction to accountancy sets the foundation for understanding the critical role
that accounting plays in the world of business and finance. It encompasses the systematic process of
recording, analyzing, and reporting financial transactions, which is essential for informed decision-
making by stakeholders. By highlighting the key principles, concepts, and objectives of accounting, this
chapter provides a roadmap for how financial information is generated and utilized. As we move
forward, we will delve deeper into specific accounting practices, standards, and the practical application
of accounting information, building on the fundamental knowledge established here. This initial
understanding is vital for anyone aspiring to navigate the financial landscape, ensuring transparency,
accuracy, and accountability in financial reporting.
 Chapter 2

2.1 Basic terms in Accountancy

Understanding the basic terms used in accounting is essential for grasping the broader concepts of
financial management. Here are the key terms that form the foundation of accounting:

Assets:Assets are resources owned by a business that have economic value and can be converted into
cash. They are classified into current assets, such as cash, accounts receivable, and inventory, which are
expected to be converted to cash within a year, and non-current assets, such as property, plant, and
equipment, which provide long-term value.

Liabilities: Liabilities represent the obligations of a business. They are amounts the company owes to
external parties and must be settled over time through the transfer of money, goods, or services. Similar
to assets, liabilities are categorized as current liabilities, which are due within a year, and long-term
liabilities, which are payable over a longer period.

Equity: Equity, also known as owner's equity or shareholders' equity, represents the owner's claim after
all liabilities have been subtracted from the assets. It consists of capital contributed by the owners and
retained earnings, which are the profits that have been reinvested in the business.

Revenue: Revenue is the income generated from normal business operations, such as sales of goods or
services. It is the top line of the income statement and is a critical indicator of business performance.

Expenses: Expenses are the costs incurred in the process of generating revenue. These include costs
such as wages, rent, utilities, and depreciation. Expenses are subtracted from revenue to determine net
income(Wood & Sangster 2008).

2.2 Fundamental Accounting Concepts

Accounting is built on several fundamental concepts that ensure consistency, reliability, and
comparability of financial statements. These concepts form the bedrock of the accounting principles and
practices.

Accrual Basis: The accrual basis of accounting recognizes revenue when it is earned and expenses when
they are incurred, regardless of when the cash transactions occur. This approach provides a more
accurate picture of a company's financial position by matching revenues with the expenses incurred to
generate them.

Going Concern: The going concern concept assumes that a business will continue its operations for the
foreseeable future and has no intention or need to liquidate. This assumption allows for the deferral of
the recognition of certain expenses and liabilities.

Chart of Accounts

The chart of accounts (COA) is a systematic listing of all accounts used by a business to record financial
transactions. It provides a framework for organizing financial information and is tailored to meet the
specific needs of a company (Thomas & Ward 2012)

A typical chart of accounts includes:

- Assets (e.g., Cash, Accounts Receivable, Inventory)

- Liabilities (e.g., Accounts Payable, Loans Payable)

- Equity (e.g., Common Stock, Retained Earnings)

- Revenue(e.g., Sales Revenue, Service Revenue)

- Expenses (e.g., Rent Expense, Salaries Expense, Utility Expense)

Each account in the COA is assigned a unique number, usually a four-digit code, to facilitate easy
identification and recording of transactions. The structure of the COA allows for the addition of new
accounts as the business grows and evolves.

In summary, a thorough understanding of accounting terminology and concepts is fundamental for

effective financial management. Mastery of these basics ensures that individuals and businesses can
maintain accurate financial records, make informed decisions, and comply with regulatory
requirements. The double-entry system and the chart of accounts are crucial tools that support these
objectives, providing a robust framework for recording and organizing financial data.
 Chapter 3

3.1 Chapter: Specialized Areas in Accountancy

Introduction

Accounting is a multifaceted discipline, crucial for the financial health and transparency of all types of
organizations. While traditional accounting focuses on financial reporting and compliance, specialized
areas within the field cater to specific needs and sectors. This chapter delves into four such specialized
areas: Forensic Accounting, Environmental Accounting, International Accounting, and Nonprofit
Accounting. Each of these areas requires unique skills and knowledge, reflecting the diversity and
complexity of modern financial environments.

Forensic Accounting

Forensic accounting involves the use of accounting, auditing, and investigative skills to examine the
finances of an individual or business. It provides an accounting analysis that is suitable for court.
Forensic accountants are often involved in fraud investigations, litigation support, and dispute
resolution(Boroso 2014)!

Key Functions

1. Fraud Detection and Prevention: Forensic accountants investigate financial discrepancies and
irregularities, such as embezzlement, insider trading, and financial statement fraud.

2. Litigation Support: They provide expertise in legal cases, offering insights that help in resolving
disputes related to financial matters. Their findings often serve as crucial evidence in court.

3. Insurance Claims: Forensic accountants assess and quantify claims in the event of losses due to
accidents, natural disasters, or other insured events.
International Accounting

International accounting focuses on accounting practices and standards that apply across different
countries. It addresses the complexities of financial reporting and compliance in a globalized economy,
where businesses operate across multiple jurisdictions.

Key Functions

1. Global Financial Reporting: Preparing financial statements that comply with international accounting
standards, such as IFRS (International Financial Reporting Standards).

2. Multinational Taxation: Managing tax obligations in various countries, including transfer pricing, tax
treaties, and international tax planning.

3. Foreign Currency Transactions: Accounting for transactions in multiple currencies, including the
translation and consolidation of financial statements.

Skills and Techniques

Professionals in this field need a deep understanding of international accounting standards, foreign
exchange regulations, and global financial markets. They must be proficient in managing the
complexities of cross-border financial operations and mitigating risks associated with currency
fluctuations and diverse regulatory environments.

Nonprofit Accounting

Definition and Scope

Nonprofit accounting caters to organizations that operate for philanthropic, educational, cultural, or
social purposes rather than for profit. This area emphasizes accountability and transparency in the use
of funds, ensuring that resources are used effectively to achieve the organization's mission.
Key Functions

1. Fund Accounting: Tracking and reporting on various funds and grants separately to ensure that
resources are used according to donor restrictions and organizational objectives.

2. Budgeting and Financial Planning: Developing budgets that align with the nonprofit's strategic goals,
and ensuring the efficient allocation of resources.

3. Compliance and Reporting: Ensuring compliance with regulatory requirements specific to nonprofits,
such as the IRS Form 990 in the United States, and preparing financial statements that provide a clear
picture of the organization's financial health.

Skills and Techniques

Nonprofit accountants must be skilled in fund accounting, grant management, and donor reporting.
They need to be familiar with specific regulatory requirements and accounting standards for nonprofits.
Additionally, they must be able to communicate financial information clearly to stakeholders, including
board members, donors, and the public.

Conclusion

The field of accountancy encompasses a wide range of specialized areas, each addressing distinct needs
and challenges. Forensic accounting focuses on the investigation and prevention of financial fraud.
Environmental accounting integrates ecological considerations into financial reporting. International
accounting deals with the complexities of global financial operations. Nonprofit accounting ensures
accountability and transparency for organizations dedicated to social causes. Mastery of these
specialized areas requires dedicated skills, knowledge, and a commitment to continuous learning,
reflecting the dynamic nature of the accounting profession.

3.2 Professional Ethics and Standards in Accountancy

Introduction

Professional ethics and standards are the cornerstone of the accountancy profession, guiding
accountants in maintaining integrity, objectivity, and professional competence. This chapter delves into
the essential principles of professional ethics and standards, exploring their application in various
scenarios faced by accountants.

Fundamental Principles of Professional Ethics

The accountancy profession is built on several fundamental principles that ensure the trustworthiness
and reliability of accountants. These principles include:

● Integrity

Accountants must be straightforward and honest in all professional and business relationships. Integrity
is a cornerstone principle, as it builds trust with clients, employers, and the public.

●Objectivity

Accountants must not allow bias, conflict of interest, or undue influence to override professional or
business judgments. Objectivity ensures that decisions are made based on factual and impartial
information.

● Professional Competence and Due Care

Accountants have a continuing duty to maintain professional knowledge and skill at a level required to
ensure that clients receive competent professional service. This includes acting diligently and in
accordance with applicable technical and professional standards.

● Confidentiality

Accountants must respect the confidentiality of information acquired as a result of professional and
business relationships and must not disclose any such information to third parties without proper and
specific authority unless there is a legal or professional right or duty to disclose.

Conclusion

Professional ethics and standards in accountancy are vital in ensuring the trust and credibility of the
profession. Accountants must adhere to the fundamental principles of integrity, objectivity, professional
competence and due care, confidentiality, and professional behavior. By navigating ethical dilemmas
with a structured approach and complying with international standards, accountants can uphold the
profession's integrity and contribute to the public good
 Reference

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Edwards, J. R. (1989) A History of Financial Accounting. Routledge, London.

Hopwood, A. G. (1987) The archeology of accounting systems. Accounting, Organization and Society.
London. Wagner prints

Hopwood, A. G.1990 Accounting and organization change. Accounting, Audit and Accountability
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Thomas, A. and Ward, A.M. (2012). Introduction to Financial Accounting. Berkshire: McGrawHill

Education.

Wood, F. and Sangster, A. (2008). Business Accounting . Edinburgh Gate: Pearson Education

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