The Framework of Accounting, Financial Reporting, and Auditing

The art of business, suggests an old dictum, is that of making irrevocable decisions on the basis of inadequate or incomplete information. A great deal of this information is conveyed through accounting, the rules of which were established in 1494 by Luca Paciolo, ¹ an Italian monk and mathematician; these rules have been continuously adapted to changing conditions and business requirements.