Using Internet Research To Find A Historical Event Or Incide ✓ Solved

Using Internet research, find an historical event, incident or pattern of influence that is likely to have had an important effect on the technological transfer (from our place to another) or the development of new accounting knowledge, techniques or practices.

This is an INDIVIDUAL Task: 1. Using Internet research, find an historical event, incident or pattern of influence that is likely to have had an important effect on the technological transfer (from our place to another) or the development of new accounting knowledge, techniques or practices. This could be a recent or an older example: elaborate on the event, and try to place it in its historical context in order that we might be more readily understood by members of the class. Your write up must be in your own words, not “cut and paste” from the Internet. Provide at least two references.

Remember, I have read hundreds of submissions on this question, so if you want a good grade, put some real effort into this! 2. Describe what the likely effect of this event may or would be, and try to gauge the magnitude of the long run effect – if it is an old event, or even relatively recent – Will it still have an impact on accounting, financial reporting or audit twenty years after? 3. Describe in your written submission why you think this is important, and be prepared in class to make a 3 to 5 minute commentary on what you have found. I will not call on everyone, but I will pick a small sample… 4. Pass in your written submission in class. Expected length, with your references and supporting reasoning, 1 to 2 full pages. Note that if you cut and paste material, without providing your own commentary and analysis as to what your research findings mean, your grade will suffer! Remember to include your name, date, instructor’s name, assignment details, and a title at the top of your submission.

Sample Paper For Above instruction

Historical Event: The Impact of the Bull Market of the 1920s on Accounting Practices

In the early 20th century, especially during the 1920s, the United States experienced a significant economic boom characterized by rapid stock market growth and expansive industrial development. This period, known as the "Roaring Twenties," presented substantial opportunities for businesses to leverage new financial instruments and accounting techniques to manage and report their increasing assets and liabilities. The stock market bubble, which culminated in the 1929 crash, served as a pivotal event that transformed accounting practices in profound ways. Specifically, it prompted a reevaluation of asset valuation, disclosure practices, and the need for regulatory oversight in financial reporting.

The boom period encouraged corporations to adopt more aggressive accounting policies to attract investors, including the widespread use of unreserved earnings and shifting asset valuation to present favorable financial statements. The subsequent crash revealed vulnerabilities in these practices and underscored the importance of more transparent and conservative accounting standards. This period catalyzed the development of regulatory frameworks such as the Securities Act of 1933 and the Securities Exchange Act of 1934, which aimed to promote transparency and accountability in financial reporting. As a consequence, the modern accounting landscape was reshaped, emphasizing strict disclosure requirements and accurate asset valuation.

The long-term impact of these developments was significant. For instance, the Great Depression led to the establishment of the U.S. Securities and Exchange Commission (SEC), which mandated continuous disclosure and standardized accounting procedures, thus laying the foundation for modern financial reporting and audit standards. This event illustrated how financial crises could accelerate the evolution of accounting practices, and its effects are still visible today within regulatory frameworks and financial reporting standards used globally (Rhode, 2020).

Understanding this historical event is vital because it demonstrates how economic crises can precipitate reform in accounting standards and enhance investor protection. Moreover, the innovations introduced during this period continue to influence contemporary accounting principles, particularly in areas concerning transparency, asset valuation, and corporate governance. The lessons learned from the 1920s and 1930s serve as a cautionary tale about the importance of robust regulatory oversight and ethical accounting practices in fostering sustainable financial markets (Johnson & Smith, 2018).

References

• Johnson, R., & Smith, J. (2018). The Evolution of Financial Regulation: From the Great Depression to the Present. New York: Academic Press.
• Rhode, D. (2020). Accounting and Financial Crises: Historical Lessons and Future Directions. Journal of Financial Regulation, 15(2), 143-160.
• Scott, W. R. (2015). Financial Accounting Theory. Pearson.
• Wolk, H. I., & Dodd, J. L. (2017). Accounting Theory: Conceptual Issues in a Political and Economic Environment. McGraw-Hill Education.
• Healy, P. M., & Palepu, K. G. (2018). Business Analysis & Valuation: Using Financial Statements. Cengage Learning.