Globalization is a significant concept and is considered a business phenomenon. Globalization refers the integration of markets that is a result businesses moving around more frequently. Accounting is a product of the business industry and it has to deal with these transformations https://accountantsglasgow.net/. These changes and transformations not only have an impact on accounting standards, principles, and education but also on accounting education. Because of globalization, more businesses are going international, it has become more important to understand more than the Generally Accepted Accounting Principles. It is vital to understand the International Financial Reporting Standards.
The impact of IFRS adoption around the globe has had a tremendous impact on accounting education. The adoption and use of IFRS can however be seen as part a larger movement, which includes the globalization, or internationalization, of businesses. This includes small and medium-sized businesses. This has made life easier for accounting professionals as well as small businesses. Accounting professionals and students will find it difficult to succeed as they become more globalized.
Because of the various accounting standards, globalization has its problems and consequences for accounting education. The biggest problem is the education. How will the International Federation of Accountants, or the International Accounting Education Standards Board, (IAESB), be able to coordinate international accounting education? (Needles Jr. The need for a common set of accounting standards is growing. This would facilitate the global education in accounting. The development of high-quality standards in financial reporting is in the public interest. The universal standard would allow for a more consistent education in accounting. It would not include different standards that follow different tax and financial laws from different countries. GAAP is the most widely used set of international standards for financial accounting and reporting. There are many similarities, but there are also significant differences. These differences can be a problem for accounting professionals. It is impossible to learn accounting standards based only on one set of standards. Accounting education is currently behind the times due to the lack of a standard set for accounting. The IFRS is being used more frequently because there is a universal set of standards in use by all countries.
Accounting education should be able to comprehend global standards. The IFRS has been a key component of the accounting profession’s globalization. The growth of IFRS is a positive step towards globalization in accounting education. It makes it easier to teach and has fewer differences than GAAP. IFRS is being used by nearly all Fortune 500 firms. It has been suggested that principles-based standards be adopted. This would allow for different laws to be accommodated and would faithfully record financial transactions and events. (Needles, Jr 601). There are two problems with a system that is principle-based. One, how would students be taught and the other.