ABSTRACT
Recent years have seen an upsurge of interest in the development of financial reporting practices which, perhaps, reflects the stage of accounting in its overall development. Prior to 1970 historical analysis focussed mainly on the achievement of a better understanding of the origin and gradual widespread adoption of DEB. This pre-occupation is not surprising in view of the fact that, for many centuries, it remained the major accounting innovation. But while Italian merchants are properly acknowledged as the ‘creators’ of DEB, Britain may be seen as the instigator of modern financial reporting practices. This ‘British contribution’ is thought to have its origin in the need to account for finance raised to build on the early fruits of the Industrial Revolution; more specifically, to finance development of the transportation network needed to move people and goods to their desired locations, and to exploit the technical innovations which increasingly required the replacement of small manufacturing units by large scale production.
