The emerging role of accounting (future)

May 22, 2018 | By admin4u | Filed in: Uncategorized.

first INTRODUCTION

Accounting has evolved in the development of human beings, and the concepts of accounting are derived directly from the most important principle of conservatism, it is not difficult to understand why the accounting style at all times has direct contact with age. As man evolved from the primitive age to the modern interdependence age, life is increasingly becoming the concept of a globalized world driven by hunter-gatherer, knowledge-driven, "towards efficiency towards the order of magnitude", and, together with evolution, abacus through management accounting financial settlement and management accounting; focusing on decision making

The United States Financial Accounting Standards Board (FASB), which generally standardized and strengthened globally accepted GAAPs, has taken significant steps in the international IASB (International Accounting Standards Board) known as the "International Convergence". Such convergence is expected to gradually align GAAP and IFRS as long as it is consistent with the goal of leading corporate / corporate reporting into a globally unified process.

1.1 Finding a Problem

There is no absolute certainty of what the future is in the accounting profession. However, it seems that the age of the future, which would necessarily be scientific progress, would make a man worthy of greater value over time. Spirituality, environmental awareness and development can be a key factor in the future. The purpose of the dissertation is to find out whether Accountancy would be better achieved by itself in solving financial problems in which a person is able to evaluate natural capital fairly, would lead to a significant balance sheet total, compared with the industrial age when even man was considered a labor force and not they were considered as important as the machines they operated. THE LITERARY REVIEW

This approach has been approached from a content analysis point of view – both conceptual and relational. Content analysis is a "research technique for objectively, systematically and quantitatively describing the apparent content of communication" (Berelson, 52). Conceptual analysis was simply an examination of the presence of the problem, ie whether there is a stronger presence of a positive or negative word on the specific argument, and a relational analysis based on conceptual analysis by examining the relationships between the concepts. Similarly to other researches, the initial possibilities of studies have determined the possibility of this specific paper. [2.1] 2.1 Evolution of Accounting Theory

According to Investopedia.com, in the light of the evolution of accounting theory, both historical bases of accounting practice and the way in which accounting practices are audited, as well as adaptation to the study and application of financial principles. It is believed that accounting as discipline has existed since the 15th century. From that point on, businesses and economies have continued to develop. Accounting theory needs to adapt to new business models, new technology standards, and shortcomings that can be detected in reporting mechanisms, and is therefore a constantly evolving topic. As professional accounting organizations help companies to interpret and use accounting standards, the Accounting Standards Board continuously helps to develop more effective practical application of accounting theory. Accounting is the foundation for effective business management and intelligent decision making without which businesses and commerce work blindly and deadly worldwide. It is therefore necessary to combine how it evolved into its future role.

2.2 Origins of Accounting

Luca Pacioli wrote in 1494 (ehow) a mathematical book that contained a chapter on business mathematics. Since this book is the first official book of accounting, Luca Pacioli is considered separately as an "accounting father". In Matthias's books, Pacioli explained that a successful trader needs 3 things: enough money or credit; an accounting system that can tell him how to do it; and a good accountant who works. Pacioli's theory is still valid today, both magazines and accountants, and they believe it has popularized the double-entry bookkeeping in force since the 1300s.

2.2.1 First Accounting Change

During the 1772s, the accounting profession went beyond accounting for cost accounting. The theory and idea have been transformed into a methodology that determines whether or not your business is working efficiently or whether you use labor and resource surpluses. The new theory of cost theory has allowed a trained accountant or accountant to use the book to extract financial reports to demonstrate the effectiveness of such data. This new idea has led to the survival of businesses under depression; is a business that has not been able to make an intelligent management decision without having been a cost accounting breakthrough.

2.2.2 The Revolution of the American Revolution / British Courts

The end of the American Revolution saw the first US government accounting system set up in 1789 and was set up to account and handle US Treasuries. The double entry practice and theory were accepted. British courts have decided that they need professional accountants to provide financial information in court cases. Eligible accounting bodies / concepts have been introduced in Great Britain (and in particular the United States Certified Public Accountant – CPA). In 1887, the first standardized exam came about as Frank Broaker became US's first CPA.

2.3 Modern Costs

This was first established in 1923 by General Motors (GM) and developed methods that reduced costs and upgraded and lasted over 50 years. The new accounting techniques developed include return on investment, return on equity and GM's flexible / adjustable fiscal concept.

2.4 Accounting Conventions and Conventions

This was established by the Accounting Procedures Committee (CAP) between 1936 and 1938 in the USA, thereby standardizing accounting practices for all companies in the United States. In 1953, GAAP was upgraded, the CAP became the Accounting Principles Committee (APB) in 1959 and later in 1973, APB (bad financial management) was replaced by the Financial Accounting Standards Board (FASB)

2.5 International Financial Reporting Standards

Between 1973 and 2009, the FASB issued nearly 200 statements, thereby establishing the underlying accounting standards and now taking further steps to align all accounts with the International Accounting Standards Board (IASB) The International Financial Reporting Standards (IFRS). It is widely believed that the accounting profession is a mixed effort between accounting theorists and practicing accountants in every nation and worldwide. Thus, the framework of accounting is the harmony of efforts by which professional accounting organi- sations tend to regulate and standardize accounting issues.

2.6 The Nigerian Scenario

In Nigeria, the case does not differ from the one already discussed. The country's accounting standards (concepts and conventions) have been inherited by British colonial masters. And since the world has really become a big global village through oversight of globalized accounting bodies and ensuring that all Member States are in line with the current generally accepted accounting principles, Nigeria has also raised the latest and most famous public-private and public sector reforms that include the federal government's 2010 in July, to adopt International Private Sector Accounting Standards (IPSAS) for the private sector as a conscious effort, both in the public sector and the private sector, in the public and international financial reporting standards (IFRSs).

2.7 International Convergence of Accounting Standards

This concept is both a goal and a goal to be achieved. The FASB considered that the ultimate goal of convergence is a high-quality international accounting standard that can be used worldwide for domestic and cross-border financial reporting. To this end, the FASB and the IASB are deliberately seeking to jointly eliminate the differences between "GAAP" and "IFRS". Such a conscious effort was made on April 5, 2012, when an update was announced at the plenary session of the Financial Stability Committee on accounting convergence. The growing demand for global capital markets is the desire of investors to deliver high-quality, internationally comparable financial information as a result of usefulness, to provide immediate decision-making, and then to address the exact solutions to problem-solving. The IASB was formed on 1 April 2001 as the successor to the International Accounting Standards Board (IASC) and on 1 March 2001, the IASB, an independent accounting standard maker based in London, assumed responsibility for accounting standardization in England. The IASB is responsible for issuing a number of accounting standards and statements that are known as International Financial Reporting Standards (IFRS)

3. Presentation of Statements

Two illustrations (2) can be used to illustrate the present statement (interpretations). Illustration.1 follows the evolution of bookkeeping; principles, roles, concepts, professionalism, standardization and internationalization. The illustration.2 shows the evolution of accounting with human evolution on the one hand, and on the other hand extends the reader's understanding of the subject. The reader (user) of this paper easily discovers the past and future view of the accounting role and seeks to finally tell what the future of accounting can (or should) be. Self-accounting is not a terminology in the Court's literature, but is used here to represent any primitive accounting system maintained by traders well before the double entry. Accounting was thus the past of Accounting when the role of accounting was only to record revenues and expenses, to indicate liabilities and not necessarily demonstrate assets and profits as the trader's personal or private income. Instruments could sometimes be detected as a cost. These can be assumed, as most of the companies operated as a sole proprietor (and continue to operate). The current role of accounting includes; management, financial reporting and management decision making. These three elements ensure today's accounting relationship. Guardianship is mentioned because Europe and American continental traders at that time train slaves to provide bookkeeping services. So traders did not have to carry out the tasks. The purpose of Financial Accounting is to provide the standard for financial reporting, especially to reporting users who are largely responsible for the companies concerned. Management accounting has been set up to create records that would help decision-makers of managers and business owners. In general, all three roles of accounting are currently helping stakeholders to make good decisions about their business relationship. These interested parties may or may not have the right to obtain the reports thus discussed. They are stakeholders; creditors and government (receive financial reports only); shareholders, investors and management (who use both financial reports and management reports); the employee and the steering group (who use all the reports: accounting, financial reports and management reports); and competitors, resident communities and customers – who have no right to obtain these reports but are able to obtain financial reports (annual reports) to assist with their decisions in respect of any business related to them

) supports correct decision making, but sometimes misunderstanding and judgment of the reports, as well as their recorded results, may result in wrong decisions. The three roles of accounting are currently bed-rock, with which standardization of principles and procedures has been standardized so far. The emerging role of accounting (future) is expected to be ready for what is expected. Illustration2 would justify this concept

Illustration.1- Accounting in the US (1300 – 2014)

Leadership (before 1300)

Double Entry (1300) [19659003] – Introduction to Double Entry Principle

Book Management Improved (1494)

– Financial Reports Begin

(1772)

-Dividend Accounting for Decision Making

↓ [19659003] Dual Entry (1789)

– Content of Conservatism is Fully Accepted

Professionalism (1850)

/ Introduced Authorized Bodies

AICPA was founded in the United States (1887) [19659003

Qualification Examinations (1897)

Introduction of First Standardized Examinations

Revitalizing Cost Accounting (1923) – Ensuring Standards and Operational Guidelines

– Modern Cost Accounts Developed by General Motors Company and Still Relevant From 1973

Concepts and Conventions (1936)

– Conservatism has extended to other concepts and conventions

-US

CAP

The CAP further develops (1959)

The APB (Accounting Principles Board)

19659003]

APB is developing (1973) [19659003] – APB is replaced by FASB

FASB created (1973)

– Financial Accounting The Regulatory Board replaces APB and publishes more than 200 statements by 2009

From all over the world, IBAB assumes responsibility for the IASC on 1 March 2001

England (2001)

-IASB's influence independent "International Acc

19659003] FASB and the International zai Convergence (2012-2014)

-GAAP (made by the FASB) in accordance with the IFRS introduced by IASB

3.1 Reality Accounting vs. Future Accounting

What is Reality Accounting and What is Reality Accounting expand? Wikipedia.com defines reality as all things, structures (actual and conceptual), events (past or present) and phenomena, whether observable or not. Reality is thus considered to be a term that connects ideologies with or with part of the world view (conceptual frameworks). Reality Accounting is close to "Fair Value Accounting", which is both the foundation and the theory of accounting. It seems to be transforming into the future role of accounting. In financial accounting, it is easy to see that accounting reflects corporate and economic realities, but it is common sense that accounting can not adequately reflect reality, especially in terms of double-entry bookkeeping and technical limitation of the fair value accounting system. As part of the changes resulting from Reality Accounting, a new "Natural Capital" concept emerged. The Rio + 20 Summit on Sustainable Development, Rio de Janeiro, organized by the UN Conference on Sustainable Development (UNCSD), held in Brazil on 20-22 June 2012. At the conference, the Natural Resources Declaration was made in such a way that Natural Capital now includes all the natural features of the Earth (soil, air, water, flora and fauna) and the resulting ecosystem services that enable human life . He estimated that ecosystem products and services are worth billions of dollars each year from natural capital, and serve food, fiber, water, health, energy, climate protection and other essential services.

3.2 The concept of natural capital [19659003] Neither the services nor the stock of natural resources that provide them represent an adequate value compared to social and financial capital, even though they are fundamental to all existing ones. The daily use of Natural Capital continues to be noticeable in our financial system. Therefore, it is necessary to use Natural Capital in a sustainable manner. All interested parties, including the private sector and governments, should begin to assess and take into account the use of natural capital and recognize the true cost of economic growth and maintain human well-being now and in the future. [33119659003] Natural capital, however, is considered to be good, but should be seen as a part of global wealth that governments need to act now and wise to create a framework that governs, rewards or taxises the private sector for its use. Reliable policy frameworks that are able to report the value, use and depletion of natural capital must be the intention of any government that wants a good starting point for the new accounting phenomenon. In real accounting, deeper economic influence prevails, since what they consider to be true is only real in their consequence and not in their physical nature. Therefore, the value of Natural Capital would, for example, follow the value of the valuation after taking into account the various factors that led to such an assessment. These factors include the size, presence, location, other natural resources, the presence of flora and fauna, etc. of mineral resources.

Illustration.2- The Future of Accounting (Future)

HUMAN AGE ….. …….. HUMAN EVOLUTION ……………. ……………… ACCOUNT EVOLUTION

Primitive age ………… Hunter collector ………. ……………………. Own Accounting

(Independence) …… (Existing life) ……………………………. .(Abacus)



Colonial Age ………… Colonization ………………………….. ……. Stewardship Accounting

(Pending Age) ….. (Effective) …………………………….. ..(Booking)



Modern Age …………. Industrialized Technology ……. Financial Accounting

(Independence) ……. (Effective) ……………………………. .. (Financial Report)



Modern Age …………. Knowledge-driven Technology ………….. Management Accounting

(interdependence) … (from efficiency to size) ………… (decision making)

? ↓

The Age of the Future ……… Technology-driven Developments …….. Reality Accounting?

(Efficiency ……………. Environmentalism? ……………………… ….. (No choice as a tool

Based on …………….. Development? …………………….. ….. but does not provide

Interdependence …… Spiritism? ……………………………….. … accurate solutions

………………………… (what is what?) ……….. ……….. financial problems)

4.0 CONCLUSION

As a man in the field of science and research is full of a modern world seeking higher heights, accountants should consider their profession be. It simply provides information on business prosperity as financial reporting as corporate responsibility and now about decision-making on future forecasts about what this future holds for accounting or that accounting is expected to remain professional and relevant in the future, which is complemented by environmental and development challenges around the world. Because accurate records and reports supported good decision making, though sometimes poorly interpreted and judged by the reports, and poorly based on their results, accounting roles that accounted for the standardization of accounting principles and processes evolved are now undergoing obvious changes.

Reality Accounting clearly shows that concepts such as International Convergence, Natural Capital, Environmental Protection, Development and Real-Value Bookkeeping will soon determine the way forward

This study will stimulate the or against academic arguments against it in order to inform the accountants of the subconscious changes that are already underway. It is therefore recommended that experienced researchers come up with additional ideas, summaries and reviews that can help you clear the way forward for your bookkeeping.

REFERENCES

1. http://www.investopedia.com (Accounting Theory)

2. http://www.eHow.com (The History of Accounting Theory)

3. Berelson, Bernard. Content analysis in communication research. New York: Free Press, 1952

Source by Mahmood Omeiza Adeiza


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