Accounting and financial history Essay

news report and m angiotensin-converting enzymetary historyIntroduction Many people suck in spent their entire lives insideng research on the training of news report and withal the monetary history. Economic sector is the stronghold of every country and that is wherefore the research has been taken seriously. Accounting has taken different phases in its festering and each phase gull a significant meaning to the todays account process. The phylogenesis has been influenced largely by major sparing, political and social terminations that affect the serviceman in the past centuries. Different periods gain alike influenced the development of history, business and financial history. Every event that has been happening in the world has led report to a nonher level in terms of development. approximately of the events were negative while some were positive provided they all influenced the development of method of accounting positively and that is what people enjoy ac counting in the original time. Accounting and financial history is interconnected with events and periods and therefrom integrity cannot bankrupt the two while studying this history. Different countries have different accounting history although there are some international events that had influenced more than one country and that means that they have the same accounting and financial history. The target of the paper is to discuss an event on accounting, business or financial history and its relevance for today.See more Foot Binding In China essayRecognition and development of accounting as a profession in united States (1900-1920) In early 1895, there were some(prenominal) companies and corporations in the fall in States industry and they were both big and small. The market could not accommodate the big numbers of the corporations and companies and thus the only solution to this difficulty was to merge them in order to regulate their number. This process eventually happen ed imprint 1895 to 1900 where legion(predicate) companies merged and formed few big companies. A nifty example is the tube guild which was formed after merging many companies that were producing tubes. The many tubes companies formed one large company which had a brood of operations in it and that is where the issue of accounting got involved (Charles, 1992 p.2). While the companies were small, they were reason their financial results manually without any level of sea captainism. However, the process of merging those companies and corporations leave the companies and corporations to have a lot of operations and they needed a pro transcription of accounting. They were in need of more attenders to work on the financial operations in those companies because the financial status of the companies had gone up and they could no longer depend on the manual or outdated methods of accounting. rough companies that were merging were from diverse locations and thus they were oblige to open some branches where they could negotiate all the accounting processes and auditing of all financial statements for all the companies that were merging (Stephan, 2003 p. 200). likewise the number of hearers was increased while some auditors operated on mobile bases, they could feed from one company to another(prenominal) because the demand was very high. Another replace that occurred in accounting due to the merging of companies was the effect of the third party in the accounting operations. some(prenominal) companies that had merged had holdings companies while others were under the overtop of banks. The introduction of the third party meant that there was another party which would be interested in the financial records of a company (Christopher, 2009 p. 40). Banks would send their auditor to calculate the financial records of the company under control and thus the accounting system in the company was improved in order to improve accuracy. Involvement of another par ty meant that there was more work in the accounting and it required a high level of professionalism, and that took the accounting system to another level. Some companies would elect other companies as holding and they were amenable of auditing the financial records of the company because they were stakeholders of the company. In 1909, the congress passed a law that abolished the income revenue income but it introduced franchise task. Franchise tax law required companies to stick out their income tax to the government this meant that they were supposed to present their annual financial statements to the government. They were forced to calculate their expenses and their income in order to come up with the right totality which would be taxed. This regulation required the company to have a knotty and well-established accounting system. The auditors from the governments were also required to calculate and quantify the financial statements of those companies in order to ensure tha t they were true. This event took accounting to another level of professionalism. After the introduction of franchise tax, there were no oppositions from the company owners because the tax had very low rate. The congress saw it as a success on their side and that is where they introduced a direct tax in 1913, this tax had higher rate than the franchise but it did not make an violation on organization and thus it was appropriate to companies. In this decennary is where the First World War was fought, this war had a massive impact on the financial status of unify States and thus they decided to try the tax rate of companies. The new tax rates that were introduced by the congress required companies to give their repletion profits to the tax unit. To find out the excess profits of a company required a more professional accounting system. The government would carry out the accounting processes but the companies would also use their auditors to evaluate their financial statements fo r transparency and accuracy in accounting. The hold gives a clear history of the two de dog-irones that label the recognition and the ontogenesis of accounting in join States (Frost, 1994 p. 75). The events that happened shaped the accounting system of the coupled States, the current accounting system is out of those events and the way they influenced the accounting system. Currently, companies have a complex accounting system which ensures accurate financial statements of those companies. The historical event introduced an radical where a company had more than one auditor and that is what is there currently in companies. Companies especially the larger ones or the ones that merge utilize more than one auditor, this is because they have many financial operations and there are more governments regulations that require financial records of every company. Companies currently are operating on diversified bases and thus they have inherited an accounting system where they have est ablished accounting branches in different places. These branches are there for the purpose of accounting only. This idea was inherited form the historical event of accounting in United States. The branches are conducted by professional auditors from the high level accounts schools that were introduced in United States. However, there are some branches of accounting that are introduced by cliquish agencies and thus they are not owned by any company. Some companies which do not have auditors or they figure employing auditors to be expensive than hiring, they prefer taking their financial statements to the accounting branches. Other companies prefer to employ private auditors to do their accounting operations. The closings of these companies are influenced by the history of accounting. Banks have been involved more on accounting operations in a greater way because of the influence during the 1900 to 1920 era. Banks have their auditors this is because banks and companies have become o ne entity. Companies currently cannot operate without the assistance of banks. Companies require financial assistance and also accounting and financial advice from banks and in order to receive all that, banks must(prenominal) assess the financial status of the company and this is done through accounting process. This concept of accounting has helped many companies avoid serious financial problems but the original idea was from the 1900 to 1920 merging event. Government has also been influenced by this event where the tax system that was put in action during that time is as yet the same even today although some terms have been changed. The tax Unit in United States have established an auditors unit that is relate with assessment of financial records of different companies in order to evaluate the tax rates and the financial stands of different companies. The whole concept of government inter-group communication with the financial issues of companies is as a result of the 1913 ev ents of company taxations. Currently, government has the righteousness of annual assessment of all companies financial records in order to determine the taxation criteria to use (Maher, 2001 p. 300).Conclusion In conclusion, accounting history of United States was greatly influenced by the political, social and economic situations in the country during the 1900 to 1920 era. The decision of companies to merge was the first step which marked professional recognition of accounting in United States, the issue of taxation during the same period marked the growth of accounting as profession in America. The two economic and political events influenced the current accounting system in a great way the foundation of accounting system in United States was fixed down by the two events that happened in 1900 and 1920. More research is organism carried on to explore more on the accounting history in different countries.ReferenceStephen A. Zeff. (2003). accounting profession in US a review Articl e. Contemporary Accounting Research, 2(1), 189-205. doi10.1111/j.1911-3846.1985.tb00607.Charles W. Wootton & Carel M. Wolk. (1992). Development of the big octad accounting firms in the United States, 1900-1990. a Review Article. Accounting And backup Research, 9(36), 2. doi10.1080/00014788.1979.9729170Christopher J. Napier. (2009) Accounting Historiography A Review Article. Journal Of Accounting Research, 1(2), 30-49. doi10.2307/2489857Frost, C., & Pownall, G. (1994). Accounting Disclosure Practices in the United States and the United Kingdom. Journal Of Accounting Research, 32(1), 75. doi10.2307/2491388Maher, M. (2001). The Evolution of Management Accounting Research in the United States. The British Accounting Review, 33(3), 293-305. doi10.1006/bare.2001.0170Linkshttp//www.google.com/url?sa=t&rct=j&q=&esrc=s&source= nett&cd=1&cad=rja&uact=8&ved=0CCIQFjAA&url=http%3A%2F%2Fwww.ruf.rice.edu%2Fsazeff%2FPDF%2FHorizons%2C%2520Part%2520I%2520%2528print%2529.pdf&ei=c53DVIq3HYOeygOhqoC4B Q&usg=AFQjCNHK0-fuRjxIaFx_Fhcm2irkeq0npg&sig2=Hbe-1XbRhXAfEQ1x7J7YEQ&bvm=bv.84349003,d.bGQhttp//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CDYQFjAA&url=http%3A%2F%2Fpure.rhul.ac.uk%2Fportal%2Ffiles%2F9726813%2FNapier_Accounting_Historiography_Chapter_Final_Version.docx&ei=nZ3DVKCoM8fnywOW4oCQBQ&usg=AFQjCNF2TMA5Taow8bGh8IloT-akHFw_4w&sig2=YTqKJ_Jlv6iLFqsJYzkMjA&bvm=bv.84349003,d.bGQhttp//www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QFjAA&url=http%3A%2F%2Fclio.lib.olemiss.edu%2Fcdm%2Fref%2Fcollection%2Faah%2Fid%2F11128&ei=hJ7DVLHeOsGrU-SUhMAI&usg=AFQjCNGrQQW06W5SPOdjzoGajkftCRYMZQ&sig2=A3u6u9KN-zhmqfg2LH7ARA&bvm=bv.84349003,d.d24Source document