International Differences and Harmonization in EU

Different countries have contributed to the development of accounting over the centuries. When archaeologists discover ancient remains in the Middle East, almost all with letters or numbers on them, it is a form of accounting: the costs of war or celebration or construction, lists of taxes due or paid. It is now very well documented that the origin of written numbers and written words is closely related to the need to keep and update accounts. The Romans developed sophisticated forms of single-entry accounting from which, for example, farm profits could be calculated. Later, the growing complexity of business in northern Italy in the late middle Ages led to the emergence of a dual system. And even later, the existence of a wealthy merchant class and the need for large investments in large projects led to the public subscription of share capital in Norway in the 17th century. Next, the growing separation of ownership from management fueled the need for audit in 19th century Britain. Many European countries contributed to the development of accounting: France led the development of legal control over accounting, Scotland brought us the accounting profession, and Germany standardized formats for financial statements.