Accounting Education Changed by Globalization
It is clear that "the current economic environment has caused
great shifts" (Petkov, 21) that coincide with the way we must reproduce
our accounting system. This growing need for legitimacy of accounting
information begins with enhancing our education. The skills we learn
through changing curricula, both in an institutional and work setting,
will allow us to be better prepared for unexpected situations that will
come in a globalized business world.
One of the first issues to discuss through globalization's impact is the tax system. Considering the many different needs of social programs from country to country, the tax rates would have to change to support the different priorities per nation. Also, the income gaps and levels will range dramatically and would require restructuring to avoid any disastrous situations in making this change (Petkov, 24). As accountants, our education would need to support the necessary actions to enact a universal tax system.
The most largely talked about topic is the differences between IFRS and GAAP. Since these two systems are used to produce financial statements for large corporations, we must be able to compare and connect the information internationally. Many believe that we must "end up with a common system of regulation, auditing, and accounting" to effectively use globalization to support our economies ("Globalization's Impact on Accounting Education"). Additionally, changes happen within both IFRS and GAAP yearly. Since "both sets of standards are updated frequently... " it can be hard "... for accounting students to stay current with principles of the United States, as well as international standards" ("The Impact of Globalization on Accounting Education Amongst College Students"). This expansion of information will call for a completely new introduction to accounting education.
Globalization demands that we learn how to interact with foreign clients and expand our ability to represent companies around the world. As accountants, we will converse with clients on a daily basis. Many of our partners in operations will be leading companies in foreign nations using IFRS, while our nation continues through GAAP. Not only do we have to understand their culture to have positive interactions, but we need to be able to correctly compare their statements with our own. We need to understand their way of cooperating with each other to avoid misunderstandings and continue to build strong relationships for the future.
In reference our courses, the education system must begin to incorporate ways to teach both IFRS and GAAP. Through these actions, undergraduate and graduate programs can be sure they are preparing future accounts for the various unexpected situations of a global market. Before globalization became a goal for many businesses, accounting students only had to undergo education for the accounting system of the country they lived in. We now need to acquire skills to "possess a complete and vivid knowledge of the international financial and tax structure which undoubtedly becomes tougher" ("How Does Globalization Impact Accounting Education?").
A deeper look at globalization's effect on accounting education brings to light a need to possibly address the tax systems, the differences in reporting between IFRS and GAAP, cultural differences, and how we can begin to face these challenges when we are undergrads. As accountants, we need to be able to provide data that is comparable between businesses operating in different countries. Reliability and relevance of our financial statements are an integral part of operating both internally and externally. Globalization continues to produce challenging conversations and asks we further increase the necessary topics of discussion in accounting education.
Sources:
Minnick, Evelyn W. "How Does Globalization Impact Accounting Education?" AccountingWEB. N.p., 07 Feb. 2016. Web. 01 Mar. 2016.
Nolan, Jessica. "Globalization's Impact on Accounting Education." Ezine Articles. Ezine, 18 Nov. 2010. Web. 20 Feb. 2016.
Petkov, R. "Scholastic Views On International Accounting Within The Lenses Of The Global Medium." Trakia Journal Of Sciences 10.4 (2012): 20-27. Academic Search Complete. Web. 3 Mar. 2016.
Saitto, Gabrielle. "The Impact of Globalization on Accounting Education Amongst College Students." Ezine Articles. Ezine, 13 Nov. 2013. Web. 20 Feb. 2016.
One of the first issues to discuss through globalization's impact is the tax system. Considering the many different needs of social programs from country to country, the tax rates would have to change to support the different priorities per nation. Also, the income gaps and levels will range dramatically and would require restructuring to avoid any disastrous situations in making this change (Petkov, 24). As accountants, our education would need to support the necessary actions to enact a universal tax system.
The most largely talked about topic is the differences between IFRS and GAAP. Since these two systems are used to produce financial statements for large corporations, we must be able to compare and connect the information internationally. Many believe that we must "end up with a common system of regulation, auditing, and accounting" to effectively use globalization to support our economies ("Globalization's Impact on Accounting Education"). Additionally, changes happen within both IFRS and GAAP yearly. Since "both sets of standards are updated frequently... " it can be hard "... for accounting students to stay current with principles of the United States, as well as international standards" ("The Impact of Globalization on Accounting Education Amongst College Students"). This expansion of information will call for a completely new introduction to accounting education.
Globalization demands that we learn how to interact with foreign clients and expand our ability to represent companies around the world. As accountants, we will converse with clients on a daily basis. Many of our partners in operations will be leading companies in foreign nations using IFRS, while our nation continues through GAAP. Not only do we have to understand their culture to have positive interactions, but we need to be able to correctly compare their statements with our own. We need to understand their way of cooperating with each other to avoid misunderstandings and continue to build strong relationships for the future.
In reference our courses, the education system must begin to incorporate ways to teach both IFRS and GAAP. Through these actions, undergraduate and graduate programs can be sure they are preparing future accounts for the various unexpected situations of a global market. Before globalization became a goal for many businesses, accounting students only had to undergo education for the accounting system of the country they lived in. We now need to acquire skills to "possess a complete and vivid knowledge of the international financial and tax structure which undoubtedly becomes tougher" ("How Does Globalization Impact Accounting Education?").
A deeper look at globalization's effect on accounting education brings to light a need to possibly address the tax systems, the differences in reporting between IFRS and GAAP, cultural differences, and how we can begin to face these challenges when we are undergrads. As accountants, we need to be able to provide data that is comparable between businesses operating in different countries. Reliability and relevance of our financial statements are an integral part of operating both internally and externally. Globalization continues to produce challenging conversations and asks we further increase the necessary topics of discussion in accounting education.
Sources:
Minnick, Evelyn W. "How Does Globalization Impact Accounting Education?" AccountingWEB. N.p., 07 Feb. 2016. Web. 01 Mar. 2016.
Nolan, Jessica. "Globalization's Impact on Accounting Education." Ezine Articles. Ezine, 18 Nov. 2010. Web. 20 Feb. 2016.
Petkov, R. "Scholastic Views On International Accounting Within The Lenses Of The Global Medium." Trakia Journal Of Sciences 10.4 (2012): 20-27. Academic Search Complete. Web. 3 Mar. 2016.
Saitto, Gabrielle. "The Impact of Globalization on Accounting Education Amongst College Students." Ezine Articles. Ezine, 13 Nov. 2013. Web. 20 Feb. 2016.
Accounting Education Changed by Globalization
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