Revenue Recognition Research Paper Example | Topics and Well Written Essays - 3250 words

Revenue Recognition - Research Paper ExampleModern financial business relationship is highly dep conclusionent on double entry book retentiveness. However, the origin of double entry bookkeeping is non clearly known of yet literatures suggest that in almost every civilization, financial record keeping was followed. Franciscan Friar, Luca Pacioli is often associated with double entry bookkeeping because he published a book on the same in 1494. In the book, he spoke of debit and credit as well as of liabilities and assets. Pacioli also advised in the book about periodic profit calculation and yearly climax of books (Previts, Parker & Coffman, 1990).Around sixteenth century, noticeable changes were proposed and incorporated in the bookkeeping techniques for the purpose of recording various kinds of transactions. During this period, use of specialized subsidiary books such as separate cash book increased greatly. By the end of seventeenth century, development of periodic preparation of financial statements was witnessed. Additionally, the eighteenth century marked personification of incompatible accounts and transactions for rationalizing debit and credit rules that were applicable to abstract and impersonal accounts (Jones & Riahi-Belkaoui, 2010 Previts, Parker & Coffman, 1990).The period also pointed at evolution of three methods of treating fixed assets. Firstly, assets were carried forward in financial statements at original cost and deviance betwixt revenue payments and receipts was shown in profit and loss account. Secondly, fixed asset accounts were closed on the rapprochement date and the difference between debit and credit balance due to original cost and other(a) expenditures was carried forward. The third method was to evaluate appreciation and/or depreciation in the asset value and the difference was reflected in profit and loss account. However, it was only around 1930s, the depreciation charges and methods became more evident in rule (Edward s, 2013).Post industrial revolution in nineteenth century, cost