Globalization and Its Impact on Accounting Education

Globalization, defined by dictionary.com as ‘worldwide integration and development,’ is a movement that has affected many industries worldwide. One of the main industries affected by globalization is the accounting industry, including college accounting education. College accounting education has been affected by the 150 credit hour requirement to sit for the CPA, and the issue of Generally Accepted Accounting Principles (GAAP) vs. International Financial Reporting Standards (IFRS). The accounting industry has been affected by the changes in accounting education and the consequent learning gaps between students from different countries.

The United States has recently implemented a 150 credit hour requirement in order for students to be able to sit for the CPA exam. This requirement was put in place to improve the preparation of students for the profession and increase their chances of success on the CPA exam. Before this rule, students were only required to have 120 credits before they could take the exam. The additional 30 credits is beneficial to students because it allows them to become more well-rounded students by taking more accounting courses, learning more about the accounting profession, and pursuing an MBA.

While the 150 credit hour rule is beneficial to the students that it applies to, the rule does not apply to all accounting students worldwide, therefore creating a learning gap in accounting education. In some countries outside of the United States, an accounting degree is the only prerequisite required to sit for the CPA exam. This learning gap is magnified as a result of accounting firms following the trend of globalization and expanding their practice into multiple countries. The result will be accounting students from different countries having the same qualifications, but varying technical skills and knowledge.

Another way that accounting education has been affected by globalization is the conflict between GAAP and IFRS. GAAP is the set of accounting principles used in United States, and American companies are required to follow GAAP standards when reporting and analyzing financial information. Students in the United States will have to learn the GAAP principles, but these principles will not be enforced internationally.

The result of this would be American students learning two sets of accounting principles: GAAP and IFRS. IFRS is used internationally by over one hundred countries to report their financial statements. The use of IFRS is supported by the International Accounting Education Standards Board, which was established to “serve the public interest by the world-wide advancement of education and development for professional accountants leading to harmonized standards (Needles, S70).”

The goal of IFRS is to create a uniform set of standards for all countries so they can compare financial statements internationally. The immediate way to make this happen would be to withdrawal GAAP from use in the United States and switch to IFRS. Though this method would solve the issue of the conflicting sets of standards, it would cause a multitude of other problems within college accounting education. Professors would need to learn the new IFRS rules, and then re-work their class structures and learning objectives accordingly. Also, new textbooks would have to be produced with information on the updated IFRS rules, and less emphasis on the GAAP principles. While an immediate change to IFRS from GAAP in the United States would be problematic, a change over time is the goal that should be pursued. “The Securities Exchange Commission has announced that it will attempt to abandon the use of GAAP and move towards IFRS (Scanlan).” The production of new textbooks would have to begin almost immediately so the textbooks could be circulated to schools around the United States within the next few years. New courses addressing the change from the use of GAAP to the use of IFRS would then have to be implemented into school curriculums within the same time period of the textbooks being circulated.

The switch from the use of GAAP to IFRS should also be a goal that is being worked towards in the professional accounting industry. Several benefits would come from achieving this goal, such as providing a common framework that supports the globalization of capital markets, allowing financial performance to be better understood globally, and strengthening accounting practice internationally. “It is encouraging that the majority of the Fortune Global 500 companies are likely to use IFRS (or word-for-word IFRS equivalents) by 2015 (Needles 603).”

Overall, globalization’s impact on accounting education and the accounting industry has been substantial, and cannot be ignored. The 150 credit hour rule, which is not currently enforced in all countries, has created a knowledge gap between professionals who have been educated in different countries. The trend of accounting firms expanding their business internationally has forced the United States to acknowledge the idea of adopting a set of accounting principles that is recognized internationally. As a result, the accounting education practice in the United States will have to adjust to match the trends of the accounting industry. In the end, the changes caused by globalization will help the accounting industry in the United States become more internationally friendly, as well as help accounting students become more prepared to take on the challenges they will face when they get into the industry.

Works Cited

Needles, Belverd E. “Accounting Education: The Impact of Globalization.”Accounting Education 19.6 (2010): 601-05. Business Source Complete [EBSCO]. Web. 12 Oct. 2015.

Needles, Belverd E. “International Education Standards (IES): Issues of Implementation A Report on the Third IAAER Globalization Roundtable.” Accounting Education 17.(2008):69-79. Business Source Premier. Web. 12 Oct. 2015.

Scanlan, Bill. “Globalization’s Impact on Accounting Education.”Articlesbase. Articlesbase Ltd., 09 Nov. 2011. Web. 08 Nov. 2015.

5 Tips to Consider When Starting a Home Base Business

Before you excitingly jump into starting a home base business you may want to consider a few things about the business you’re getting into.

If you have been searching the internet for a business you already know there are thousands of choices out there.

One thing for sure is that you do not want to get into a business that after a few short months you come to realize it isn’t for you or you feel you made a wrong choice. Not only will you have wasted some money but also valuable time.

Here is something to think about also. Even if you did make the right choice, the business could be too overwhelming for you or too difficult to duplicate.

So here are some tips to consider when starting a home base business:

1. Duplication. Now when you get into a home base business of course it starts with you as the first member of your business but you eventually are going to add team members to help you leverage your time and efforts. This a very important part because you want to be able to show your business to your prospects as something that they are able to do as well and it is simple enough to start making money right away.

2. Beneficial. Is the business you are starting beneficial for you and for the people you bring into the business. Is it something that you know will help people reach their financial goals and easy enough to build right away. That also ties into duplication.

3. Enjoyment. I know you may think what the heck does this have to do with starting a home base business I’m here to make money. But I believe you have to enjoy what you’re doing or better yet love what you’re doing because once that is the case you will never work another day in your life.

4. Passionate. This one is huge in my opinion and this is why. Your passion for what you are doing is ultimately what is going to bring you the success in whatever you do in your life. It is that driving force that will keep you working diligently on building your home base business and bringing others aboard your opportunity. Your passion will attract people to you.

5. Compensation. This may be number one for many people. In simple terms, how much are you getting paid? You definitely want to make money in the business you’re in. That is why you got into it in the first place. But I also feel even though the compensation is outstanding if you don’t have the other steps in the equation it may not become as profitable as you may have hoped for.

There you have it, five quick and easy tips to consider when starting a home base business. If you are considering starting your own business, asked yourself these questions and really give yourself an honest answer. You will not regret it.

Finding Legitimate Home Based Business Opportunities – 4 Tips To Get The Best One For You

With the economy like it is, it would be wise to take some control back into your life by finding a legitimate home based business opportunity.If you are one of these people looking to secure their financial future then how do seek out the best home based business opportunities that meet all your needs, while not bleeding you dry of all your hard earned cash.You need to learn how to separate the good opportunities from the bad ones. Fact is because more and more people are looking to start an internet business and make money online, the more people are failing at internet business. This is sadly because they are being seduced by home based business opportunities that do not work.You know the ones. Every headlines like “copy my proven system and make a six figure income online in 2 days!” “quit your day job tomorrow by following these 3 simple steps!”To help you avoid the bad and attract the good I have provided you with my 4 tips to choosing a legitimate home based business opportunity.1. You do the research – when you find an internet business opportunity that takes your interest, make sure you do some ground work before investing. Get honest reviews and testimonials. Read through articles and review sites. As the internet has developed through the years bad business are starting to stick out like a sore thumb! As long as you are putting in the effort find out about the product or service you are interested in then you should get the feeling whether or not it is as legitimate as it says it is.2. Ask people questions – part of your research should be to find people who are already involved in the home based opportunity you are interested in and ask them as much as possible about it. Ask them questions like are they making money online, how long did it take to make money online, what do they like about it, what don’t they like about it, why did they choose it and will what technical skills will you need.3. Don’t just buy the first one you like – there are plenty of great online business opportunities out there for you to look at. Check out at least 3 is my recommendation. There is no rush, the internet is not going anywhere, so take your time and choose the one that meets the most needs you have.4. Only look at home based internet businesses that you can afford – the most expensive does not always mean the best, and the cheapest is not always the worst. Work out your investment budget properly. Then find out which home income systems are within your budget that can actually provide you with what you want. I will say though that internet businesses are cheaper to start then traditional businesses, but also remember that there is no such thing as ‘cheap quality’. Just use a common sense approach.Good luck in finding a legitimate home based business opportunity. There are plenty of fantastic products and services out there to help you make a great living online. Just make sure you pick the right one for you.


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