Globalization and Accounting Education
Globalization and Accounting Education
Globalization has caused separate markets to merge into one world market. The markets are no longer separate and self-reliant, but now are interconnected and dependent. The world market has created difficulties establishing international accounting standards and education of international accounting principles and procedures. With further integration of the world markets means more volatile economic systems. The interdependence between nations has a profound impact on the economics of the world, i.e. the United States of America housing market crash of 2008. The Great Recession did not only cause a recession in the American market; the US crashed caused a chain reaction in other economies and slowed economic growth. Regarding accounting education, equipping students to understand the inter-global relations will be an important part of their education.
Accounting education used to focus on domestic markets; students learned about the regulatory procedures and accepted accounting principles. Economic integration adds complexity and simplicity to accounting education. The European Union is a stage of economic integration of countries to unite under one currency and economic unity. Current laws of the European Union, regulate commerce and avoid another member of the union establishing more leverage over others. Students and educators have an advantage because of the unions standards in laws and regulation. Having one currency creates standard exchange and value. With England existing the European Union has raised some concerns of the strength of the Union. The accounting curriculum in the United States has had a disadvantage to understanding different countries laws and practices in relationship to their own. This causes a problem in education and understanding of the effects of different countries taxes, laws, and regulations on their accounting in America. Now academia must accommodate the complexity of the global market in their curriculum and educate pupils on the global accounting principles.
Students in the US, learn the generally accepted accounting principles (GAAP) and apply the principles to course materials. International Accounting Standards Board (IFRS) has the difficult duty to create international accounting standards. Accounting students and educators must anticipate the change in accounting standards, but also, they cannot ignore current domestic accounting standards. Curriculums will have to adapt to including the international accounting standards, and educators are tasked with what material to introduce to pupils. In addition, the eligibility and requirements may change to become a certified public accountant or the international equivalent. The current CPA requirements are over 150 accredited hours and a bachelor’s degree to sit for the examinations. If international accounting standards are implemented this may cause an effect on the requirement to become certified public accountant or the international equivalents. This change would cause an affect to acidemia when educating and equipping students to be prepared for CPA requirements.
With advances in technology, the world is becoming more globalized and interconnected; International Accounting Standards Board (IFRS) is trying to implement universal accounting standard. Educational institutions are now facing a challenge of equipping students with knowledge of foreign entities and understanding the political or ethical backgrounds. Academia will face difficulty in implementing international accounting standards into curriculums. If educator desire pupils to be equipped and competitive in the global economy, they must implement and introduce students to international standards.
Minnick, Evelyn. “How Does Globalization Impact Accounting Education?” AccountingWEB, 7 Feb. 2016, www.accountingweb.com/community/blogs/evelynwminnick/how-does-globalization-impact-accounting-education.