1. EVOLUTION OF ACCOUNTING
Accounting has evolved and emerged, as have medicine ,law and most other fields of human activities ,in response to the social and economic needs of society. Book-keeping and accounting appeared not as a chance phenomenon, but distinctly in response to a world need.
For centuries after the system of double entry book-keeping appeared , accounting was without methodology or any form of theory. It was during the 19th century that a move from book-keeping to accounting-a move away from the relatively simple recording and analysis of transaction towards a comprehensive accounting information system-was seen.

2. DEFINITION OF ACCOUNTING
What is accounting?
“accounting is a art of recording, classifying and summarizing in a significant manner and in terms of money, transaction and events which are , in part at least , of a financial character, and interpreting the result thereof.”

3. ACCOUNTING AS AN INFORMATION SYSTEM
As an information system, accounting links an information source of transmitter(generally the accountant), a channel of communication(generally the financial statement) and a set of receivers (external user). When accounting is locked upon as a process of communication, it is defined as “the process of encoding observations in the language of the accounting system, of manipulating the signs and statements of the systems and decoding and transmitting the result.”

4. USERS OF ACCOUNTING INFORMATION
Accounting provides useful information about the activities of an entity to various individuals or groups for their use in making informed judgment and Decisions . The users of accounting information can be broadly divided into 3 types
1.Management or Managers
2.User with direct financial interest
3.User with indirect financial interest

5. 1.Management:
Management is a group of people who are responsible for using the resources and managing the affairs of an entity to achieve the goals and objectives . Accounting provides timely an useful information to management for planning, control, performance measurements, decision-making and for performing many activities and functions in the company.

6. Users with direct financial interest:
The users who have direct financial interest in a company are existing and potential investees and creditors. This users do not participate in the actual management of the company but have interest in how business has performed
Users with an indirect financial interest:
there are some other users who have indirect interest in business of a company.

7. Factors influencing accounting environment:
An understanding of financial accounting depends not only on delineation of accounting principles and features and objectives of accounting, but also on an understanding of the environment within which financial accounting operates and which it is intended to reflect.
Economic and social factors
Legal and statutory requirements
Accounting profession and institutional structur
Corporate financing system

8. Accounting and economics development
Accounting information disclosure minimizes the capital market uncertain.
The reduced capital market uncertainty encourages more investors to buy and sell securities in the capital market.
The capital market size affects both the market information processing risk sharing.
The larger the market portfolio, the smaller the market risk per asset is and the easier it is for investors to hold/purchase an efficient portfolio of securities.
The capital market helps in the development of saving which effects the economic growth through investment.

9. MODULE : 2 REVENUE RECOGNITION AND MEASUREMENTS
Meaning:- It is generally accepted that revenue is earned throughout all stages o the operating cycle. However, accountants always debate and have problems as to when during the operating cycle can revenue be recorded as earned. For this some criteria have been developed which are called revenue Recognition criteria

10. Following are the criteria for revenu recognition:-
1.Revenue recognized at the point of role
2.Revenue recognition in roles of services
3.Revenue recognition in construction work
4.Revenue recognition in installment credit roles
5.Revenue recognition using production method
6.Revenue recognition when a firm receives, interest, royalties and dividends

11. AS-9 ON DISCLOSURE RELATING TO REVENUE RECOGNITION
1.Revenue from sales or service transactions should be recognized when the requirements as to performance set out in points(2) and(3) below are satisfied , provided that at the time of performance it is not unreasonable to expect ultimate collection. 2.In a transaction involving the rendering of services, performance should be measured either under the completed service contract method or under the proportionate completion method, work accomplished.

12. MOUDLE:3 DEPRECIATION ACCOUNTING AND POLICES
The term depreciation refers to periodic allocation of the acquisition cost of tangible long-term asset over its useful life. Depreciation has been discussed in detail later.

13. FACTORS INFLUENCING THE SELECTION OF DEPERECIATION METHOD
1.Legal provisions: The statute governing an enterprise may be the basis for computation of the depreciation. 2.Financial reporting: The goal in financial reporting for long-lived assets is to seek statement of income that realistically measured the expiration of those assets.

14. 3.Effect on managerial decision: The suitability of a depreciation method should not be argued only on the basis of correct portrayal of the objective facts but should also be decided in terms of their various managerial effects. 4.Inflation: Depreciation is a process to account for decline in the value of assets and for this many methods such as straight line, different accelerated method are available.

15. 5.Capital Maintenance:
During inflation, depreciation, if based on historical cost of assets, helps a business firm to gather an amount equivalent to the historical cost of the asset less its salvage value.