Lessons from the Evolution of the Accounting Tool: From the Genesis up to the Roman Period

Littleton (1993) points out that “Accounting is relative and progressive. (…) Older methods become less effective under altered conditions; (…) surrounding conditions generate fresh ideas (…) as such ideas and methods prove successful they in turn begin to modify the surrounding conditions” (Littleton, 1933, p. 361). We argue that “accounting crises”, such as the use of the system in a way that was not designed or the voluntary disclosure of wrong data is, according to Littleton’s terminology “new problems” that “older methods” are not designed for. The succession of accounting debt crises of the first 21st century is a perfect example of the history which continually repeats. To demonstrate this, the chapter aims to identify from the early history of accounting elements linked with economic crises and in response, how the accounting system does evolve. To fulfil this objective, we used a harmonised methodology in the four major periods for analysing accounting crises.