ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Effect of Globalization on Accounting Education Programs

Updated on November 13, 2016

In today’s international business network, globalization has impacted many different corporations and firms. However, unexpectedly it has also altered business education, specifically accounting programs. While some programs are considering switching from GAAP (Generally Accepted Accounting Principles) to IFRS (International Financial Accounting Standards) others are completely reworking their entire curricula. Regardless of the specific change, it is clear that the focus has shifted. Now students’ learning is no longer the only priority, but also aligning the learning with the new expectations of firms. As a result, globalization has proven to be an ever-changing phenomenon that impacts education and its institutions

Back in 2011, U.S. educational institutions began the process of switching curricula from GAAP to IFRS. This transition process was a result of the Securities and Exchange Commission’s expected switch of U.S. companies from GAAP to IFRS. With the ever-growing impact of globalizations, more and more countries throughout the nation have been operating on the basis of IFRS. This encompasses international tax and financial issues that can become very detailed and difficult to solve. In addition, these other countries have also been altering their international business and accounting programs for years. For example, a 2007 study administered a survey in five of Taiwan’s universities and found that six basic accounting courses needed to be altered in order to remain current with the times (Kai-Wen 7). Like many other countries, it only seemed fit for the U.S. to follow suit, in order to stay pertinent.

In order to incorporate globalization into U.S. higher-level education curricula, the primary focus is to integrate new IFRS standards. Once U.S. companies made the switch, students would be required to know the difference between both GAAP and IFRS in the workforce. Seems simple enough, however the struggles arise when professors are not prepared to teach the new curricula. Based on a survey administered to college level professors, thirty-eight percent of participants did not feel comfortable enough with the material to be able to teach the new IFRS standards (Shinn 3). Therefore, the professor’s lack of preparation is the most common reason for a bumpy transition in curricula and ultimately delaying the transition. This is not the only reason though.

The barrier preventing IFRS in school curriculum is not solely due to the professor’s personal knowledge, but also to teaching materials readily available. In a survey administered by AAA and KPMG regarding implementing the new IFRS standards in school curriculum:

“[79%] of respondents say that their key challenge will be developing curriculum materials, while 72% say it will be making room for IFRS in the curriculum. Meanwhile, only 16% of respondents indicate that their schools will fund training for professors to learn about the IFRS so they can teach it to students.”

Without the financial means, education institutions are at standstill and unable to implement the new standards into courses. Fortunately, even with these hurdles, education institutions are receiving additional financial assistance.

Accounting firms are doing their part to ensure young accountants receive a proper education. With the change from GAAP to IFRS, the Big 4 accounting firms want to ensure that their future hires will be well versed on the topic. For example, “Deloitte announced that nearly 100 colleges and universities had joined its IFRS University Consortium, deigned to bring IFRS into college curricula.” Founding members of Deloitte’s program, Ohio State University and Virginia Tech contributed to IFRS course materials such as, on-campus lecture tapes and actual Deloitte case studies and solutions (Shinn). Other firms, such as PwC, have awarded grants to help fund new curriculum. Support similar in this nature has proven to be instrumental in the revamp of accounting curriculum.

In addition to big accounting firms, universities are looking within to help aid the transition. Institutions are reaching out to alumni and advisory councils for guidance and training. Universities are utilizing globalization to the fullest by reaching out to European and other professors abroad. This is extremely beneficial because some of these institutions have been teaching IFRS for years. For example, the University of Navarra in Barcelona, Spain, “introduced IFRS into its curriculum more than 15 years ago to accommodate a highly international student body” (Shinn 5). With the help of institutions abroad, universities are determined to ensure that students are properly versed in the new IFRS accounting standards.

The business world is constantly changing and adapting. Especially due to globalization, business from all over the world are in constant communication. With this being said, business education programs need to change as well. Especially with the U.S. shift from GAAP to IFRS U.S. accounting programs are in need of some modification. There have been some obstacles, such as training and funding that have slowed down the learning process. However, institutions and business corporations are doing what they can to ensure students enter the working world with a proper education.

Works Cited

Kai-Wen, C. (2007). THE CURRICULUM DESIGN IN UNIVERSITIES FROM THE PERSPECTIVE OF PROVIDERS IN ACCOUNTING EDUCATION. Education, 127(4), 581-590.

Minnick, Evelyn. "How Does Globalization Impact Accounting Education?" Accounting Web. N.p., 7 Feb. 2016. Web. 12 Nov. 2016.

Shinn, S. (2009). Ready or Not, Here Comes IFRS. Bized, 8(4), 44-50.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)