HISTORY OF THE FORMATION OF ACCOUNTING WITHIN THE FRAMEWORK OF THE NORMATIVE THEORY

Abstract

The article is devoted to the history of the development of accounting and a detailed analysis of the process of distinguishing it from other sciences. Accounting can be interpreted as a science that predicts and formulates trends in the development of accounting practice as a field of human activity, which provides information for making management decisions regarding economic subjects. Special attention is paid to normative theory and the relationship between accounting and the economic environment is presented. To understand the importance of accounting, you need to familiarize yourself with its rich history, understand the essence of certain terms (for example, management accounting, financial reporting, etc.), understand the role of accounting in management, the ability to formulate the difference between profit and money and other categories and concepts. The surrounding economic environment in a certain way affects both accounting science and accounting practice. In this, the role of science is twofold. On the one hand, it performs an auxiliary role: being under the dominant influence of practice, accounting science summarizes and systematizes the techniques, methods, and procedures that are being developed. On the other hand, the generalizations made allow scientists to give recommendations that precede practices. Accounting can be interpreted as a science, according to the sacred explanation, prediction and formation of trends in the development of accounting practice as a field of human activity, which provides information for making managerial decisions regarding economic subjects. The surrounding economic environment in a certain way affects both accounting science and accounting practice. In this, the role of science is twofold. On the one hand, it performs an auxiliary role: being under the dominant influence of practice, accounting science summarizes and systematizes the techniques, methods, and procedures that are being developed. On the other hand, the generalizations made allow scientists to give recommendations that precede practices.