The world is in constant motion and transforming its information, customs, cultures, and ideas daily; this is the process of globalization and it is gaining a lot of popularity in the business world and quickly becoming, if not already, a social norm. The world is becoming smaller, technology is improving and markets are becoming larger in this rapidly growing global economy. Students today are part of this change in a sense that college students in the field of accounting are reevaluated and taught differently to better aid them with international awareness and customs to ensure future successes within this business field.
Accounting is known as the “language of business,” it is imperative that globalized companies understand and can harmonize with one another to make sure a common understanding so that accounting procedure is understood by the entire business community (Paul, 2007). “While the changes in the business environment impact accounting and accounting education, there is a recent call to advance the research in accounting education in order to provide the best answers to the challenges from the environment” (Albrecht and Sack, 2000; Albu, 2012). Therefore, teaching accounting to students today include a longer and more diverse structure to accommodate and keep up with emerging economies (Albu, 2012). To encompass the idea of globalization for accounting students, they must understand two key concepts; the accounting process they learned in school, Generally Accepted Accounting Principles (GAAP) and accounting principles used internationally, International Financial Reporting Standards (IFRS) (De Gottal, 2014). If students only focus on GAAP, it could hinder their opportunities for a job in the future when dealing with international financial companies. GAAP, which is mainly taught as US colleges are not used worldwide. It would be necessary for students to grasp both concepts to help gain essential comprehension which will give them the opportunity to go further than those without this knowledge.
If not yet, then very soon, accounting majors will be made to take more international courses so they can entirely understand and be knowledgeable of the different political, economic, and market systems of every country. To fully grasp these principles can only help students studying accounting when they are finally applying for jobs in this competitive field. It would not be surprising that in the future, countries eventually comply with each other to craft one set of accounting standards and laws. Along with more intensive classes possibly being added to the already 150 credits, five-year program before students can even sit for their CPA exam; students will never stop learning after they graduate. Accountants must constantly be up to date with the changing of such globalized markets and principles, since both GAAP and IFRS are updated so frequently.
Today, accounting firms are looking for more diversity when hiring a potential employee. For instance, many students take a major in accounting and a minor in Finance. Firms today are looking for more variety in a potential candidate. Minors, or even a double majoring in international business shows firms of ones sense of diversity and creativity when applying for jobs in this field. Possibly picking up a second language while working towards your goal of 150 credits can only aid students. This shows that companies are shifting towards and complying with a more globalized market. This change gives both international and US born students an opportunity. US students looking for work will be able to travel overseas to work in developing business corporations such as Asia or Europe (Nolan, 2010), and vice versa for international students looking for work here in the US. An issue with international students is that they do not have to go through that same schooling as US students, which can create a gap in education, but on a positive note, “each accountant will be able to bring something different to the table, and accounting professionals will be able to learn from one another” (Saitto, 2013).
These inevitable changes in the accounting field are both positive and negative for future accountants. It is important that as students we understand these changes and work with it to ensure positive outcomes when looking for jobs. The educational system is becoming more globalized in the sense of giving students the opportunities to learn further about globalization within accounting. Students now have the opportunity to study abroad to learn more about IFRS more than a US college can offer. This could give a greater advantage to those when applying for a job in the future. To gain experience and knowledge about globalization in this economy and society is a great way to get a head start in your career as a successful accountant.
Albu, Nadia, Catalin Nicolae Albu, and Maria Madalina Girbina. “Educating Accounting Students In An Emerging Economy – An Analysis Of The Importance Of Stereotypes In Teaching Ifrs.” International Journal Of Academic Research 4.3 (2012): 51-57. Academic Search Complete. Web.
Diaconu, Paul. “Impact of Globalization on International Accounting Harmonization.” SSRN Electronic Journal SSRN Journal (n.d.):. Web.
Nolan, Jessica “Globalization’s Impact on Accounting Education.”. 18 Nov. 2010 EzineArticles.com. Web.
Saitto, Gabrielle. “The Impact of Globalization on Accounting Education amongst College Students.” EzineArticles.com N.p., 13 Nov. 2013. Web.
De Gottal, Emma Frances. “The Globalizations Impact on Accounting Education.” EzineArticles.com. N.p., 18 Nov. 2014. Web.