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10 major events that impacted business

We are over a year into the COVID-19 pandemic and BDO has experienced substantial changes to our way of doing business, figuring out innovative ways to serve our people and clients. Just as the last year presented new obstacles for BDO, the past 100 years have been full of many significant events, forcing us, and the business community, to adapt and transform with each one.

1. The Great Depression

The stock market crashed on October 29, 1929, marking the beginning of The Great Depression era. The economic crash wiped billions of dollars from the economy and many businesses did not survive. The world faced grave challenges throughout the next decade, but new opportunities arose as well. BDO Canada, while still a relatively new firm as our journey started in 1921, was able make it through a tumultuous time.

2. World War II

On September 10, 1939, Canada declared war on Germany. Canada was significantly more involved in World War II as compared to World War I, and this had a larger impact on Canadian society. Many factories were reworked to create war equipment and weaponries, while others were quickly built from the ground up. In all, Canadian industry generated more than $9.5 billion in materials during the war effort. World War II was a turning point in Canadian history, as the federal government significantly strengthened their role in national economic growth. The Great Depression dominated the 1930s, but the war prompted the most growth Canada has ever experienced, creating opportunities for businesses including BDO.

world-war-2-cemetery
3. Digital revolution

The digital revolution started with the Internet and followed with mobile devices, social networking, big data, cloud computing, and continues today with other emerging technologies. These technological developments have transformed work practices across industries. For a firm like BDO, advances in technology allowed for intelligent automation, which was reflected in automated financial reporting systems replacing manually inputting financial statements. In March 2020, BDO acquired Lixar, an AI and Data Company, to accelerate Artificial Intelligence (AI) and data-driven solutions in Canada and globally.

4. Free trade
wwii-cemetery_gettyim... (copy)

The Free Trade Agreement between Canada and the U.S. went into effect on January 1, 1989. The pact, later expanded through the North American Free Trade Agreement (NAFTA), greatly transformed the economic relationship between Canada, Mexico, and the U.S. More recently, former President Donald J. Trump initiated a plan to renegotiate NAFTA. Ultimately, it was replaced with an updated agreement now known as the United States-Mexico-Canada Agreement (USMCA), which came into existence on July 1, 2020. Many companies like BDO had to navigate these new regulatory provisions in the updated trade agreement while also sharing the impact with clients.

5. Dot-com bubble burst

The dot-com bubble was a speculative bubble in the stock market occurring from 1995 to 2000. Many investors experienced a major decline in their wealth and the losses had a lasting effect for many. Most dotcom stocks crashed by the end of 2001. Not even share prices of technology stocks like Cisco and Oracle were immune as they saw their stock value plunge as well. The bubble burst resulted in companies declaring bankruptcy. Other besieged companies were acquired or merged with other companies. However, many companies made it through the crash — 48% of dot-com companies continued through 2004.

6. Enron accounting scandal

In 2000, the accounting fraud at Enron was starting to emerge. The CEO concealed the financial damages of the trading business and other company operations with mark-to-market accounting. The accounting practice was intended to obscure the losses while making the company seem like it was still turning a healthy profit. Ultimately, Enron filed for Chapter 11 bankruptcy protection on December 2, 2001. The following year, WorldCom also admitted to billions of dollars in accounting errors, and consequently their company shares declines so significantly they had to file for bankruptcy. Enron’s downfall led to new regulations and compliance procedures to support accuracy in financial reporting and improve accounting standards. Companies today face increased regulation and oversight to avoid financial scandals like Enron and WorldCom.

Ultimately, Enron filed for Chapter 11 bankruptcy protection on December 2, 2001. The following year, WorldCom also admitted to billions of dollars in accounting errors, and consequently their company shares declines so significantly they had to file for bankruptcy.

world-trade-center
7. 9/11

During the events of 9/11, many planes were diverted to Canadian airports after the U.S. closed their airspace. Gander, Newfoundland faced the biggest challenge as 38 flights were diverted to the town’s airport. The community of less than 10,000 people unexpectedly had to find shelter and food for approximately 6,700 people. While some Canadians lost their lives in 9/11, it was also a time when people came together. Still the 9/11 terrorist attacks triggered substantial economic uncertainty in the quick aftermath, upheaving global financial markets. Airlines and insurance companies suffered the most economically, and U.S. stock markets initially fell more than 10% in the days following the attack. Most people will never forget where they were on 9/11, including those of us at BDO.

8. Financial crisis

The global financial crisis began in 2007, pulling much of the world economy into a recession, including Canada. Canada was able to avoid a severe impact, but the Canadian recession of 2008–2009 still resulted in steep declines in production and employment. Falling oil prices and other Canadian commodity exports exacerbated the effects of the financial crisis, sending the economy into a recession in October 2008. Still, BDO was able to make it through the leaner times.

9. Cannabis legalization

Recreational cannabis officially became legal in Canada on October 17, 2018, creating a new investment and industry for the country. Its first year of legalization saw an $8.2 billion dollar growth in the economy while it created over 9,000 jobs, according to Statistics Canada. For many companies, including BDO this created a new avenue of business opportunity. BDO is now involved in cannabis-specific consulting on business process enhancement, data governance, risk management, financial reporting, and more.

cannabis leaf
10. COVID-19

Like much of the world, Canada continues to deal with the fallout from the pandemic. In March 2020, BDO had to shift to a remote work environment for the vast majority of partners and employees. What followed was several months of shutdown where citizens were told to only leave their house for essential trips such as going to the grocery store or a doctor’s appointment. The restaurant, entertainment, tourism, real estate, and other industries had to find ways to reinvent and survive. On March 18, 2020, the federal government announced an $82 billion response package to help stifle the economic damage. Since then multiple vaccines were developed and approved giving hope that an end to the pandemic is near. BDO’s people came together as a firm, continued to serve clients, and in the end, overcame another trying time in our firm’s history.

covid-hwy-sign

In March 2020, BDO had to shift to a remote work environment for the vast majority of partners and employees. What followed was several months of shutdown where citizens were told to only leave their house for essential trips such as going to the grocery store or a doctor’s appointment.

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10 major events that impacted business

We are over a year into the COVID-19 pandemic and BDO has experienced substantial changes to our way of doing business, figuring out innovative ways to serve our people and clients. Just as the last year presented new obstacles for BDO, the past 100 years have been full of many significant events, forcing us, and the business community, to adapt and transform with each one.

1. The Great Depression

The stock market crashed on October 29, 1929, marking the beginning of The Great Depression era. The economic crash wiped billions of dollars from the economy and many businesses did not survive. The world faced grave challenges throughout the next decade, but new opportunities arose as well. BDO Canada, while still a relatively new firm as our journey started in 1921, was able make it through a tumultuous time.

2. World War II

On September 10, 1939, Canada declared war on Germany. Canada was significantly more involved in World War II as compared to World War I, and this had a larger impact on Canadian society. Many factories were reworked to create war equipment and weaponries, while others were quickly built from the ground up. In all, Canadian industry generated more than $9.5 billion in materials during the war effort. World War II was a turning point in Canadian history, as the federal government significantly strengthened their role in national economic growth. The Great Depression dominated the 1930s, but the war prompted the most growth Canada has ever experienced, creating opportunities for businesses including BDO.

world-war-2-cemetery
3. Digital revolution

The digital revolution started with the Internet and followed with mobile devices, social networking, big data, cloud computing, and continues today with other emerging technologies. These technological developments have transformed work practices across industries. For a firm like BDO, advances in technology allowed for intelligent automation, which was reflected in automated financial reporting systems replacing manually inputting financial statements. In March 2020, BDO acquired Lixar, an AI and Data Company, to accelerate Artificial Intelligence (AI) and data-driven solutions in Canada and globally.

4. Free trade
wwii-cemetery_gettyim... (copy)

The Free Trade Agreement between Canada and the U.S. went into effect on January 1, 1989. The pact, later expanded through the North American Free Trade Agreement (NAFTA), greatly transformed the economic relationship between Canada, Mexico, and the U.S. More recently, former President Donald J. Trump initiated a plan to renegotiate NAFTA. Ultimately, it was replaced with an updated agreement now known as the United States-Mexico-Canada Agreement (USMCA), which came into existence on July 1, 2020. Many companies like BDO had to navigate these new regulatory provisions in the updated trade agreement while also sharing the impact with clients.

5. Dot-com bubble burst

The dot-com bubble was a speculative bubble in the stock market occurring from 1995 to 2000. Many investors experienced a major decline in their wealth and the losses had a lasting effect for many. Most dotcom stocks crashed by the end of 2001. Not even share prices of technology stocks like Cisco and Oracle were immune as they saw their stock value plunge as well. The bubble burst resulted in companies declaring bankruptcy. Other besieged companies were acquired or merged with other companies. However, many companies made it through the crash — 48% of dot-com companies continued through 2004.

6. Enron accounting scandal

In 2000, the accounting fraud at Enron was starting to emerge. The CEO concealed the financial damages of the trading business and other company operations with mark-to-market accounting. The accounting practice was intended to obscure the losses while making the company seem like it was still turning a healthy profit. Ultimately, Enron filed for Chapter 11 bankruptcy protection on December 2, 2001. The following year, WorldCom also admitted to billions of dollars in accounting errors, and consequently their company shares declines so significantly they had to file for bankruptcy. Enron’s downfall led to new regulations and compliance procedures to support accuracy in financial reporting and improve accounting standards. Companies today face increased regulation and oversight to avoid financial scandals like Enron and WorldCom.

Ultimately, Enron filed for Chapter 11 bankruptcy protection on December 2, 2001. The following year, WorldCom also admitted to billions of dollars in accounting errors, and consequently their company shares declines so significantly they had to file for bankruptcy.

world-trade-center
7. 9/11

During the events of 9/11, many planes were diverted to Canadian airports after the U.S. closed their airspace. Gander, Newfoundland faced the biggest challenge as 38 flights were diverted to the town’s airport. The community of less than 10,000 people unexpectedly had to find shelter and food for approximately 6,700 people. While some Canadians lost their lives in 9/11, it was also a time when people came together. Still the 9/11 terrorist attacks triggered substantial economic uncertainty in the quick aftermath, upheaving global financial markets. Airlines and insurance companies suffered the most economically, and U.S. stock markets initially fell more than 10% in the days following the attack. Most people will never forget where they were on 9/11, including those of us at BDO.

8. Financial crisis

The global financial crisis began in 2007, pulling much of the world economy into a recession, including Canada. Canada was able to avoid a severe impact, but the Canadian recession of 2008–2009 still resulted in steep declines in production and employment. Falling oil prices and other Canadian commodity exports exacerbated the effects of the financial crisis, sending the economy into a recession in October 2008. Still, BDO was able to make it through the leaner times.

9. Cannabis legalization

Recreational cannabis officially became legal in Canada on October 17, 2018, creating a new investment and industry for the country. Its first year of legalization saw an $8.2 billion dollar growth in the economy while it created over 9,000 jobs, according to Statistics Canada. For many companies, including BDO this created a new avenue of business opportunity. BDO is now involved in cannabis-specific consulting on business process enhancement, data governance, risk management, financial reporting, and more.

cannabis leaf
10. COVID-19
covid-hwy-sign

Like much of the world, Canada continues to deal with the fallout from the pandemic. In March 2020, BDO had to shift to a remote work environment for the vast majority of partners and employees. What followed was several months of shutdown where citizens were told to only leave their house for essential trips such as going to the grocery store or a doctor’s appointment. The restaurant, entertainment, tourism, real estate, and other industries had to find ways to reinvent and survive. On March 18, 2020, the federal government announced an $82 billion response package to help stifle the economic damage. Since then multiple vaccines were developed and approved giving hope that an end to the pandemic is near. BDO’s people came together as a firm, continued to serve clients, and in the end, overcame another trying time in our firm’s history.

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