Technological innovation has made the financial district a global market. Globalization has had a major impact on how companies do business. Companies must not only be responsible for understanding the information about their backyard consumers, but also the consumer culture and the economic, political and legal structures of other countries. Because of the impact of globalization on businesses, it has changed the expectations of the upcoming business school students and their education. More specifically, accounting students are affected by changes in the market affected by globalization. These students are particularly challenged during their undergraduate studies, not only to understand the GAAP [Generally Accepted Accounting Principles] rules and regulations, but also to understand the standards set by IFRS [International Financial Reporting Standards]. In the field of accounting, the main focus is on external reporting, involving the preparation of financial statements and audits. However, due to the changing global market, future accountants must have a view that influences external and internal reporting. Due to the rapid informationization process, the market will continue to change, making globalization an important factor in accounting education.
Companies in the United States primarily use GAAP, which is a guide to how companies build financial information to generate reports. GAAP has been very useful in the past few years because it has promoted the way companies communicate with American companies. However, in a global environment, GAAP certification is burdensome for most companies. Overseas, they have adopted IFRS, another guide to generating financial information that can help foreign companies communicate with each other. Most countries use IFRS as the basis for business transactions. Since most countries in the world use IFRS as a standard, the United States must undertake two different principles to carry out the tedious work of doing business. Pounder's article "How Globalization Affects American Accountants," Pounder said, "American accountants will find themselves at the serious disadvantage of many foreign accounting professionals who have mastered international accounting standards and are therefore better positioned to take advantage of China, India and other emerging economies. Rapidly growing employment opportunities" [Pounder, 2007, p. 3]. He then predicted that as GAAP became more and more covered by IFRS, US accountants would find their skills and knowledge to be outdated. Therefore, IFRS has become more integrated into the education accounting curriculum. Students not only need to understand GAAP, but also understand IFRS and the changes that occur when using both. By including IFRS in the learning process, students will be prepared to take the recently updated CPA exam to include information about IFRS in the Financial Accounting and Reporting [FAR] section. Students are becoming better at mastering skills and information, which will make them more marketable and efficient in a global business environment.
In the US economy, the booming financial industry is often supported by strong public accounting and auditing firms. Therefore, the focus in recent years has been to ensure that accountants are good at compiling information about company assets, liabilities, equity, investments, etc. However, due to globalization, if internal practices are not, then external accounting practices are less important. Implicated. Internal practice is important because it determines how companies approach customers in foreign markets. Authors Paul Danos and Richard L. Measelle pointed out in their article "The Globalization of the Business Environment: The Impact on Accounting and Business Education," "In an increasingly competitive global market, internal accountants must be sensitive to the driving costs. The product and he/she must work with production and marketing personnel to rationalize all costing procedures [Danos, 1990, p. 79]. The responsibility of internal accountants is becoming increasingly important to the success of the business. For companies that want to expand into foreign countries, costing is used to accurately develop product price information, location of manufacturing facilities, and selection of suppliers. Because of these factors, internal accountants must be familiar with cross-border regulation, tax processing, and currency conversion costs. In public accounting, auditors must be proficient in global accounting standards because “the world economy is becoming more and more interdependent…” [Needles, 2010, p. 602] according to the article by Belverd E. Needles Jr. The author of "Accounting Education: The Impact of Globalization." The author continues to encourage auditors' global standards because it only needs to be familiar with these regulations to enhance their practices. In order to be proficient in the global market, accounting majors are recommended to take courses designed to analyze the different cultural, linguistic and political factors that influence society.
Globalization has affected many changes in the accounting profession and education. Students now face problems in the global market and how to solve them. Not only do these students want to understand all the math and terminology associated with the business world, but they also want to have a good understanding of foreign consumer culture and regulations related to each country. Through these skills, students will be able to stand out in the new business world.
Danos, P. And Measelle, R. L. . Globalization of the business environment: implications for accounting careers and business education. Human Resource Management, 29, 77-84
Needles, B. E. . Accounting education: the impact of globalization. Accounting Education, 19 , 601-605. Doi:10.1080 / 09639284.2010.501578
Pounder, B. . How globalization affects US accountants. Montville: Management Accountants Association.Ultimate Cleaning Business Package, Click here!