At the end of the eighteenth century, signs and indications of a new development in accounting emerged as a result of economic and social factors.
The emergence of the industrial revolution led to the development of productive units and the formation of joint-stock companies to undertake the investment of the huge capital needed for the industry, and these projects were characterized by the separation of ownership from management and specific responsibility.
It also led to the complexity of the production process and the increase in the use of production factors, and consequently to the difficulty and complexity of the administrative job.
With this development, the perception of the nature of the accounting function has changed and is no longer a means to serve the importance and benefit of project owners only.
It has also become a means to serve the administration by providing detailed data that helps the administration in drawing up the various policies related to aspects of the project’s activities and supervising its implementation and control.
This results in the emergence of the importance and benefit of actual cost accounting, which aims to determine the cost of the product, control the cost elements, and submit reports for the various administrative contents to measure the extent of adequacy in achieving the objectives required of establishing the project.
Since the end of the nineteenth century and during the twentieth century, with the increase in the size of projects and the spread of the phenomenon of corporate mergers, with the increase of state intervention in the affairs of production and consumption, and with the great progress in technological means and the spread of new inventions and with the increase of competition between different enterprises to provide goods or services to satisfy the endless desires of individuals.
And the preservation of capital and its growth, and the constant search for new markets and with the increase in the external investor’s need for accounting data in order to direct his money towards profitable investments.
With all this, accounting developed, the need for computer services increased, and accounting became a way to measure the efficiency of the administration and thus its way to serve the community in general, and as a result of that the emergence of multiple and different branches of accounting by providing the administration with the detailed analytical data needed to serve the administration on the one hand and to measure its adequacy on the other hand.
From the study of the historical development of accounting, we can identify some facts related to the emergence and development of accounting:
1. Accounting is the result of economic, legal and social conditions.
It has evolved with the development of the need for accounting data to serve multiple denominations.
2. Accounting is a means, not a goal.
This method has evolved in several stages.
It is a means to serve the administration to a means to serve the community, and it is worth noting here that each of these stages is not an alternative, and each of them does not replace the other that precedes it, but in the opinion of stages that complement each other and lead to an increase in the responsibility of the accountant, he must provide the necessary data in the appropriate time and template for each sect From the sects that need it.
3. The development of accounting with the development of economic and social conditions has led to the emergence of multiple branches, from administrative accountancy to managerial accounting with its various branches to social accounting, and each of these branches serves one of the categories that need management accounting data.