Accounting and financial history Essay

write up and m matchlesstary chronicleIntroduction Many pile put on spent their entire lives insideng look for on the teaching of report and too the fiscal history. Economic sector is the secureness of e re all(prenominal)y estate and that is why the explore has been taken seriously. accounting system has taken divers(prenominal) signifiers in its development and each phase arrive at a significant signification to the nows news report process. The development has been influenced greatly by major economic, political and social upshots that modify the world in the past centuries. contrary periods let in addition influenced the development of account, profession and monetary history. Every yield that has been disaster in the world has led story formation to another(prenominal) take aim in monetary value of development. about of the events were negative part several(prenominal) were positive but they all influenced the development of be positively an d that is what people roll in the hay explanation in the authentic cadence. Accounting and fiscal history is interconnected with events and periods and thence one cannot separate the two season studying this history. Different countries control several(predicate) method of accounting history although at that place atomic number 18 some international events that had influenced much than one country and that means that they have the equivalent accounting and pecuniary history. The object of the publisher is to discuss an event on accounting, barter or monetary history and its relevance for today.See to a greater extent Foot backrest In China essay identification and development of accounting as a profession in unite States (1900-1920) In early 1895, there were many companies and corporations in the United States industry and they were both gargantuan and small. The market could not accommodate the unsound numbers of the corporations and companies and thus the on ly final result to this problem was to merge them in send to regulate their number. This process eventually happened tenor 1895 to 1900 where many companies merged and form fewer big companies. A good utilization is the tube fraternity which was formed after unite many companies that were producing tubes. The many tubes companies formed one large company which had a lot of trading operations in it and that is where the routine of accounting got involved (Charles, 1992 p.2). While the companies were small, they were sharp their financial results manually without any take of professionalism. However, the process of meeting those companies and corporations made the companies and corporations to have a lot of operations and they necessary a professional governing body of accounting. They were in need of more auditors to work on the financial operations in those companies because the financial spot of the companies had gone up and they could no longer depend on the manua l or outdated methods of accounting. Some companies that were merging were from diverse locations and thus they were forced to chip in some branches where they could manage all the accounting processes and auditing of all financial statements for all the companies that were merging (Stephan, 2003 p. 200). Also the number of auditors was increased while some auditors operated on mobile bases, they could bear upon from one company to another because the demand was very superior. Another change that occurred in accounting due to the merging of companies was the mental picture of the third society in the accounting operations. Some companies that had merged had holdings companies while others were to a lower place the discover of banks. The introduction of the third troupe 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 get the financial records of the company under c ontrol and thus the accounting transcription in the company was improved in put up to improve accuracy. Involvement of another party meant that there was more work in the accounting and it necessitate a high aim of professionalism, and that took the accounting system to another level. Some companies would elect other companies as holding and they were responsible 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 value but it introduced certify measure. liberty revenue law required companies to acquit their income tax to the political science this meant that they were supposed to toast their annual financial statements to the political sympathies. They were forced to think their expenses and their income in do to come up with the right amount which would be taxed. This jurisprudence required the company to have a complex and well- accomplished accounting system. The auditors from the governments were in any case required to calculate and measure out the financial statements of those companies in order to interpret that 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 ramp 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 adjoin on organization and thus it was impound to companies. In this decade is where the First public War was fought, this war had a massive impact on the financial situation of United States and thus they decided to urge on the tax rate of companies. The new tax rates that were introduced by the congress required companies to give their excess profits to the tax unit. To determine the excess profits of a company required a more professional acco unting system. The government would drool out the accounting processes but the companies would also use their auditors to evaluate their financial statements for hydrofoil and accuracy in accounting. The article gives a clear history of the two decades that label the recognition and the step-up of accounting in United States (Frost, 1994 p. 75). The events that happened shaped the accounting system of the United 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 liking where a company had more than one auditor and that is what is there shortly in companies. Companies especially the larger ones or the ones that merge employ more than one auditor, this is because they have many financial operations and there ar more governments regulations that require financial recor ds of all company. Companies presently be operating on diversified bases and thus they have hereditary an accounting system where they have established 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 private 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 like taking their financial statements to the accounting branches. opposite companies prefer to employ private auditors to do their accounting operations. The decisions of these companies are influenced by the history of accounting. Banks have been involved more on accounting operation s 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 one 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 assess the financial status of the company and this is done through accounting process. This concept of accounting has helped many companies overturn serious financial problems but the lord 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 still the same even today although some terms have been changed. The tax Unit in United States have established an auditors unit that is concerned with legal opinion of financial records of different companies in order to evaluate the tax rates and the financial stands of differen t companies. The whole concept of government involvement with the financial issues of companies is as a result of the 1913 events of company tax incomes. Currently, government has the tariff 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 blackguard 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 place down by the two events that happened in 1900 and 1920. More research is being carried on to explore more o n the accounting history in different countries. pedigreeStephen A. Zeff. (2003). accounting profession in US a review Article. 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 octette accounting firms in the United States, 1900-1990. a Review Article. Accounting And Business Research, 9(36), 2. doi10.1080/00014788.1979.9729170Christopher J. Napier. (2009) Accounting Historiography A Review Article. diary Of Accounting Research, 1(2), 30-49. doi10.2307/2489857Frost, C., & Pownall, G. (1994). Accounting divine revelation Practices in the United States and the United Kingdom. journal Of Accounting Research, 32(1), 75. doi10.2307/2491388Maher, M. (2001). The Evolution of perplexity Accounting Research in the United States. The British Accounting Review, 33(3), 293-305. doi10.1006/bare.2001.0170 tie inhttp//www.google.com/ uniform resource locator?sa=t&rct=j&q=&esrc=s&source= blade &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=c53DVIq3HYOeygOhqoC4BQ&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