The effects of globalization on both the accounting profession and education

May 23, 2018 | By admin4u | Filed in: Uncategorized.

Technological innovations have transformed the financial district into a global marketplace. Globalization has had a major impact on the business of business. The companies are not only responsible for the fact that they are related to information about consumers in their household, but they understand consumer culture as well as economic, political and legal structures in other countries. Because of the impact of globalization on business, the incoming business students and the expectations of their education have changed. Specifically, accountants are affected by the changes that globalization has had on the market. These students are more challenging during their initial training to understand not only the rules and rules of the General Accepted Accounting Principles (GAAP), but also the International Financial Reporting Standards (IFRS). Within the accounting sphere, the focus was primarily on external accounts, which included the preparation of financial statements and auditing. Nevertheless, due to the ever-changing world of the global market, future accountants must have perspectives that affect both external and internal reporting. The market is still changing due to fast-paced information search, which is a major factor in globalization in accounting education.

Businesses in the United States have largely adopted GAAP, which provides guidance on how businesses can prepare financial information for making statements. GAAP has proved useful in recent years as it facilitates business communications in the United States. At the same time, in the global environment, GAAP proves to be the most expensive for most companies. In the overseas, the IFRS was adopted, which provides new guidance for the production of financial information that helps communication between foreign companies. Most countries use IFRS as the basis for conducting business transactions. As most worlds use IFRS as a standard, the United States leaves the boring task of incorporating two different principles into business conduct. The article "How Globalization Affects American Accounting" Bruce Pounder, Pounder states that "US accountants are severely disadvantaged by countless foreign accounting professionals who have already mastered international accounting standards and are therefore much more positioned to take advantage of the rapidly growing career prospects in China, India and other emerging economies "(Pounder, 2007, p. 3). Then he predicts that since GAAP is increasingly overruling IFRS, US accountants will find their skills and knowledge. Therefore, IFRS has been integrated into the education curriculum. Students should understand not only GAAP, but also the IFRS and the changes that occur when they work together. Involving IFRS in the learning process, students are ready to take over the CPA exam, which has recently been updated to include information on IFRSs in the Financial Accounting and Reporting (FAR) section. Students are getting better prepared with skills and information that makes them more marketable and efficient in a globalized business environment.

In the US economy, the prosperous financial sector is generally supported by strong state accounting and auditing firms. Therefore, in recent years, the focus was on providing the accountants with the company's assets, liabilities, capital, investments, and so on. Collect relevant information. However, due to globalization, external accounting practices are not so valuable. Internal exercises are important because they shape the way businesses get to customers on the foreign market. Paul Danos and Richard L. Measelle, in their article "Globalizing the Business Environment: Effects of Accounting and Business Education", stated that "In a competitive global market, an internal accountant should be sensitive to products and production and marketing people to work together to rationalize all cost accounting procedures "(Danos, 1990, p. 79). The responsibility of an internal accountant becomes increasingly important for the success of businesses. In order to extend to foreign territories, the purpose of cost accounting is to precisely define product information, location of manufacturing facilities, selection of suppliers, etc. Due to these factors, internal accounting officers need to know cross-border rules and foreign currency conversion costs. In the case of state auditors, the auditor needs to have a thorough knowledge of global accounting standards because "the economies of the world are increasingly dependent on each other …" (Needles, 2010, p. 602) Belverd E. Needles Jr., author of the article "Accounting Education : the impact of globalization ". The author continues to encourage the global standards of auditors because he only recognizes these rules as he strengthens his practice. In order to gain a good understanding of the global market, accountants should be advised to provide courses specifically for analyzing cultures, languages ​​and political factors affecting different societies.

Globalization involves a number of changes that are both accounting occupation and education. Students are now exposed to problems in the global market and how to solve them. Not only are these students expected to understand all the mathematics and jargon related to the business world, but expect from the foreign consumer culture and the rules associated with each country. With these skills, students will be able to stand out in the new business world.

References

Danos, P., & Measelle, R.L. (1990). The globalization of the business environment: the consequences of accounting profession and business education. Human Resource Management, 29 (1), 77-84

Needles, B. E. (2010). Accounting education: the impact of globalization. Accounting Education, 19 (6), 601-605. doi: 10.1080 / 09639284.2010.501578

Pounder, B. (2007). How does globalization affect American accountants? Montvale: Management Accounting Institute

Source by Jazmin I Bannister


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