The industrial revolution and the share-issuing company

The industrial revolution (late 18th and early 19th century) was the eras when there are major changes happened in the economy which has a profound effect on socio-economic and cultural conditions in Britain and throughout the world especially in the areas of agriculture, manufacturing, and transportation.

Also, during this period was the introduction of improved conditions where powered all-metal machines  and tools are used for mass production, the development of steam-powered ships, railways, and in the late of 19th century, the invention of the internal combustion engine and electrical power generation.

With these improvements, developments and enhancements in economy, consequently, practice of accounting was greatly affected.

New accounting practices were introduced during the period of industrial revolution, to wit:

• Depreciation, Allocation of Overhead, Inventory Accounting;
• Progression of accounting for business entities like sole proprietorship, partnership, share companies and stock exchange listed corporations;
• Intensified and improved business regulations on financial reporting and new tax accounting systems and procedures.