Impact Of Globalization On Accountancy Practices

1650 Words4 Pages
bulb-icon

Recommended: Global harmonisation of accounting standards

Globalization might influence in economic and political aspects. Moreover, globalization of business has closed connection with accountancy practices in many viewpoints. In particularly, the effect of globalization of business on accountancy practices presents both great opportunities and significant challenges. However, the greatest challenges are time, distance and comparability of financial report which influences the role of accounting practices. Additionally, accountancy practices have modified by globalization of business, because accountants are required to work cooperatively with colleagues those who work in foreign firms. Therefore, the great differences of time and distance which is barriers for accountancy practices in many countries over the world. These obstacles happen in communication for exchanging information of contracts between companies. As a result, accountants should access and deal with the development of new information technology and communication technologies in order to reduce the distance aspects and improve the problem of time differences between countries (Oliver, 2010, p. 603) when working in the financial contracts over national borders. Globalization has impacted business in many aspects …show more content…

The significant effects are time, distance and comparability of financial statement. The financial statements or the capital markets over national frontiers might be changed by time and distance aspects. Therefore, accountancy practices should be applied the development of new information technology for dealing with the distance aspects and improving the problem in different of time when working over national frontiers. Moreover, the methods in accountancy practices have changed from traditional approach to the active method. Furthermore, the globalisation of accounting standards is established as a common accounting language that is effective across national

Show More
Related

  • Public Versus Private Accounting

    999 Words  | 2 Pages

    The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...

    Read More

  • The Differences Between the GAAP and the IFRS Accounting Systems

    1089 Words  | 3 Pages

    In the world of international finance there are two major accounting systems; GAAP, which stands for Generally Accepted Accounting Principles, and IFRS, which stands for International Financial Reporting Standards. The United States prefers GAAP while the European market, as well as many other countries, prefers IFRS. By 2015 the Securities Exchange Commission is anticipating a total transfer to IFRS in the United States. Though the differences between GAAP and IFRS are few, they could affect accuracy of financial reporting throughout the world. It is important to understand the differences and similarities between both GAAP and IFRS if one is to globalize ones market (Logue).

    Read More

  • Accounting profit and True Profit

    996 Words  | 2 Pages

    Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254.

    Read More

  • The Effects of Globalization

    659 Words  | 2 Pages

    In the book Globalization: A Very Short Introduction by Manfred Steger and the reprint Globalization and the Impact of American Popular Culture Abroad by Carl Guarneri, the point is made how recognized globalization has become and how much it has affected citizens around the world. Some of the debates over the effects of cultural globalization are: the West and its multinational corporations after World War II, what it promotes to the world’s people, the views of consumer capitalism’s effects and the repercussions of the globalization of culture.

    Read More

  • Canadian Accounting Industry: The Reasons For Unification

    2446 Words  | 5 Pages

    On January1, 2013 the Canadian Institute of Chartered Accountant and the Certified Management Accountants of Canada penned down an agreement of unification under one national accountants body (Frank, 2013). It laid the foundation for the unification making it necessary for all stakeholders to be brought on board. The primary reasons for Canadian accounting industry moving towards a unified designation will form the basis of this analysis, followed by the significant changes in qualification and field of study. The impact of these changes to students, Canada, and international accounting world conclude the analysis. Reasons for Unification Canadian accounting industry players have large membership numbering up to 170,000 individuals who have

    Read More

  • International Accounting Practice Essay

    1360 Words  | 3 Pages

    Differences abound in the accounting standards of Anglo-American countries such as the U.S., Canada, United Kingdom, Australia, and New Zealand and the differences are even more pronounced when comparing the standards of these countries to Japan and much of Europe (Zeff, 2012). In 1966, Sir Henry Benson, president of the Institute of Chartered Accountants in England and Wales (ICAEW), convinced his colleagues from similar organizations in the United States, Canada, Ireland, and Scotland to join with the ICAEW in forming the Accountants International Study Group (AISG) (Zeff, 2012). The AISG was the original major endeavor to compare accounting and auditing practices across countries prominent in the equities capital markets (Zeff, 2012).

    Read More

  • Segmental Reporting

    2453 Words  | 5 Pages

    Radebaugh L.H. & S.J. Gray (1993). International Accounting and Multinational Enterprises. John Wiley & Sons (USA), 3rd edition.

    Read More

  • Role and Evolution of The International Accounting Standards Board

    693 Words  | 2 Pages

    The International Accounting Standards Board, (IASB), began life as the International Accounting Standards Committee (IASC) in the 1973. The IASC was created in June 1973 as a result of an agreement by the accountancy bodies of Australia, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland and the United States. These countries constituted the Board of IASC at that time.

    Read More

  • Comparability in Financial Statements: An IFRS Perspective

    707 Words  | 2 Pages

    Accounting gives companies, investors, regulators and others with a standardized way to explain the financial performance of an entity. Accounting standards present preparers of financial statements with a set of rules that they have to follow when preparing an entity’s accounts, making sure this standardization is across the market (Robert 2008). Many Companies are required to publish their financial statements in accordance with the relevant accounting standards. To simply International Financial Reporting Standards (IFRS) is one set of accounting standards, which have been established and maintained by the IASB with the purpose of those standards being efficient of being useful consistently. Financial statements are a structured representation of the financial positions and financial performance of an entity. The role of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.

    Read More

  • Essay On Challenges Of Accounting

    1025 Words  | 3 Pages

    Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.

    Read More

  • International Business and Globalization

    1482 Words  | 3 Pages

    Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.

    Read More

  • Globalization and Organizational Behavior

    1040 Words  | 3 Pages

    To be successful in today’s global market, managers and leaders need to understand more than just technical skills. Managers and leaders should also understand globalization and organizational behavior. Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries (Search CIO). Organizational behavior is a field of study that studies individuals groups, and structure. Organizational behavior applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively (Robbins,2014).Gaining an understanding of globalization and its effect on organizational behavior is crucial to interacting effectively in the modern global economy. Globalization affects an organization’s behavior in several ways like stimulating hyper competitive pricing for a product or service, perpetuating continuous operations and communicating around the clock and globe, capitalism is replacing governmental control and organizations are no longer constrained by borders, and corporations are becoming more heterogeneous and adapting to people who are from different nationalities and cultures. To be successful in a global economy, professionals should have a thorough knowledge of sociology, psychology, communication, and management.

    Read More

  • The Globalization in Business Management

    537 Words  | 2 Pages

    As all the countries are on the way to globalize with each other, business is not the exception. Globalization in business definitely brings a lot of great opportunities for many countries. However, in order to make the best of the globalization in business, management is the golden key to that success.

    Read More

  • The Traditional Audit Without Technology

    1360 Words  | 3 Pages

    The major characters of the tradition audit are all information what is needed by auditors are on the paper and the manual calculators and without high communication technology. Auditors usually were limited by the place in the paper time. When a several people are working on the same auditing project for a client with offices in cities across the country, even worldwide, it takes a lots all time those auditors get the information which they need from the client, even there is risk paper information disappear for many reasons. on the another hand, mail paper information increase the auditing cost. The mistake caused by the manual calculators inevitably, no matter how fixed auditors concentrate on recalculate is, after all auditors are human. The global business become major in the modern business world, some example, several auditors who are in different locations are working a same auditing project, or auditors are in different city even country with the client, when there is issue among these auditors or between auditors and client, they only can communicate with each other by phone or be together and have meeting. Phone call can not make sure information been watched in the same time when the voice is talking about the issue, but having a meeting takes time and money make all people together, it increases auditing cost.

    Read More

  • Computerised Accounting System

    1303 Words  | 3 Pages

    Nowadays with the implementation of new emerging technologies, the way businesses keep this financial information has become computerised. At the moment businesses use computers with a computerised accounting system in order to perform many other new activities than what they were able to do in the past. Businesses can access financial information from different department in the organisation, access to the information through computers and find financial data very fast, being more efficient. (Beliss, 2013)

    Read More

More about Impact Of Globalization On Accountancy Practices

Open Document